Do I have to sign an extension to an IRS audit? 4 Answers as of August 22, 2011I am in the middle of an IRS audit and the auditor is new to auditing and does not have time to finish the audit before their original deadline. He asked me to sign an extension of time for the audit, but I am not sure if I should. If I do not sign the extension,what are the consequences and/or benefits? Thanks.
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
If you do not file the extension and you are close to the statute of limitations deadline, the auditor may send you a 90 day letter that will land you in United States Tax Court. Whether to sign an extension should be discussed with your tax accountant or a tax attorney.
Answer Applies to: Pennsylvania
Givner & Kaye | Bruce Givner
You do not have to sign an audit. We never agree to sign extensions. Why? Because that will give the auditor additional time to beef up the file and, if it is obvious that the matter is going to go disagreed at audit, you don't want to give the auditor any more of your (i) facts or to (ii) arguments. You would prefer to keep both for use at the Appeals division. If you have no new facts and no new arguments, then it makes it difficult for the Appeals officer to rule in your favor.
Answer Applies to: California