IRS Extending the Tax Assessment Period Restricted Consents  (Part II) A restricted consent is used to allow the assessment statute to expire on the normal or previously extended statute expiration date with regard to items on the return except those covered by the restrictive language. The consent should be prepared by the Service, and not…

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IRS Extending the Tax Assessment Period Restricted Consents  (Part I) In addition to extending the length of the assessment statutory period, consent agreements may also limit further examination or appeal activities to specific tax issues. These agreements are called “restricted consents” and have either a fixed or open-ended date of expiration. It is the Service’s…

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IRS Extending the Tax Assessment Period  Length of Extension (Part II)  In an open-ended consent, the extension period generally remains open until 90 days after either the taxpayer or the Service sends the prescribed notice ending the agreement. The procedures for using this consent are set forth in Revenue Procedure 79-22, 1979-1 C.B. 563, which…

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IRS Extending the Tax Assessment Period  Length of Extension (Part I)  The Service’s examiners will request an extension period no longer than is necessary to complete the examination and any administrative action necessary to process your case. As stated above, the Service uses two kinds of consents to accomplish this, a “fixed-date” and an “open-ended”…

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IRS Extending the Tax Assessment Period  Background (Part II)  Because of these restrictions, the Service identifies tax returns under examination for which the statutory period for assessment is about to expire and requests that you extend the assessment statute of limitations. This additional time allows you to provide further documentation to support your position, request…

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IRS Extending the Tax Assessment Period  Background (Part 1)  The Internal Revenue Service (Service) makes every effort to examine tax returns as soon as possible after they are filed. To ensure timely tax examinations, Congress has set deadlines for assessing taxes and making refunds or credit of tax. These deadlines are called “statutes of limitations.”…

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An IRS Audit (Part VIII) How does the IRS conclude an audit? An audit can be concluded in three ways: No change: an audit in which you have substantiated all of the items being reviewed and results in no changes. Agreed: an audit where the IRS proposed changes and you understand and agree with the…

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An IRS Audit (Part VII) How long does an audit take? The length varies depending on the type of audit; the complexity of the issues; the availability of information requested; the availability of both parties for scheduling meetings; and your agreement or disagreement with the findings. What are my rights? Publication 1, Your Rights as…

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An IRS Audit (Part VI) How far back can the IRS go to audit my return? Generally, the IRS can include returns filed within the last three years in an audit. If they identify a substantial error, they may add additional years. The IRS usually does not go back more than the last six years.…

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An IRS Audit (Part V) How do I know if the IRS received my response? For any delivery service you may use, always request confirmation that the IRS has received it. For example, if you use the US Postal Service, you can request one of their additional services to ensure delivery confirmation. What if I…

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