Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

We are being audited for 2014, 2015, 2016. They are auditing

We are being audited for...
We are being audited for 2014, 2015, 2016. They are auditing a single member LLC but because our personal return is encompassed together they are auditing that also. The auditors first determination (before she had all the paperwork) is that we have $200,000.00 of unreported income. All income can be accounted for that has been reported and this information has been sent to her. They want to extend because it is within 6 months of the statute. We would like her to make a determination and then appeal the decision if needed. Supervisor stated they would require the auditor to wrap up by next Friday if we didn't sign the extension. Not real comfortable giving them that much more time. What is an experts opinion about signing the extension?
JA: The Expert will know how to help. Is there anything else the Expert should be aware of?
Customer: We have another business that they haven't gotten in to and I don't really want them to go into that as this has been stressful enough. I know we can prove all of the income as non reported or the things that are reportable have been reported. I have read both sides, give them the extension or do not give them more time, just appeal.
Show More
Show Less
Ask Your Own Tax Question
Answered in 8 minutes by:
10/14/2017
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 3,869
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
Verified

Hello. Thank you for choosing this Q&A service for assistance. My name is Angela. I will be assisting you.

In brief, allowing them more time, can expose you to more assessment. The more time they have, they more time they have to dig. SEE BELOW:

-----------------------------

Taxpayer Options

Besides signing the form, what options are available to a taxpayer when presented with an extension request for an income tax case? The taxpayer can ask for a fixed statute date as opposed to an openended one. An open-ended statute of limitation tends to result in an examination being in process for a long time because there may be no urgency for the examiner to complete the audit. It also can expose a taxpayer to an unexpected assessment if the Form 872-T is not submitted. A taxpayer can extend a fixed extension date, if necessary, by signing a second consent. The taxpayer could ask for a shorter extension period than requested by the IRS so that the examination could be concluded quickly.

The taxpayer can also request a consent that is restricted to specific issues. The procedures for restricted consents are found in Rev. Proc. 68-31, as modified by Rev. Proc. 77-6. Examiners tend to not like restricted consents because the restrictive language must be approved by certain Service officials, necessitating procedures that result in delays. Such consents may not be obtained until examinations have been completed and the examination reports have been prepared. Restricted consents are normally limited to two issues.

Declining to sign the consent can result in a deficiency notice being issued, as mentioned above, but that may not be to the taxpayer’s disadvantage. Before issuance, a notice is reviewed for accuracy by the appropriate IRS officials; once it is issued, it gives the taxpayer a clear picture of proposed adjustments. The taxpayer may file a petition with the U.S. Tax Court but may also request Appeals consideration, which Appeals may grant at its discretion. Thus, an Appeals hearing may still be available without the taxpayer having to go to Tax Court. Appeals is generally precluded from raising new issues or adjustments that the examiner did not propose.

REFERENCE SOURCE:

https://www.thetaxadviser.com/issues/2009/jul/consenttoextendthestatuteoflimitation.html

If you do not require further assistance with this matter, I ask that you please take the time to scroll to the top of the page and select 3 or more stars to positively rate my response so that I can receive credit for assisting you. A 5 star rating is greatly appreciated. Thank you in advance.

Ask Your Own Tax Question
Customer reply replied 1 month ago
thats what I think. Is there sufficient time (6 months) to do an appeal and is an appeal just the information that has already been looked at? We take our documents in and then they look them over and make a determination?

Hello again.

General Time frame

First Notice from Appeals

Normally, you can expect to hear from an Appeals employee within 60 days after the Office of Appeals receives your file. Response times from Appeals can vary, however, depending on the type of case and the time needed to review the file.

If it has been more than 120 days since you filed your protest requesting an appeal and you have not heard from the Office of Appeals, then you should contact the IRS office to which you sent your appeal request. If the IRS office to which you sent your request cannot provide a reason for the delayed Appeals response you have two options: (1) ask the IRS office to contact Appeals for an approximate date when Appeals might contact you, (2) call the Appeals Account Resolution Specialist (AARS) function at(###) ###-#### The AARS can tell you if your case has been assigned to an Appeals employee and how to contact that employee directly.

----------------------------------------------

If your case qualifies for an appeal, an Appeals employee will review the issues of your case with a fresh, objective perspective and schedule a conference with you. Appeals conferences are informal and conducted by correspondence or telephone. Most differences are settled in these appeals without expensive and time-consuming court trials. Appeals will consider any reason you have for disagreement, except for moral, religious, political or constitutional arguments, conscientious objections, or similar grounds.

It is important that you provide all requested and/or relevant information to the auditor or revenue officer who works your case. Waiting to provide such information to Appeals will generally result in your case being returned to the auditor or referred to the revenue officer for consideration of the new information. Either action could cause delays in resolving your tax matters.

------------------------------------

Timeframe for Resolving Your Case

The time it takes to resolve your case depends on the facts and circumstances. It could take anywhere from 90 days to a year. Please contact your Appeals Officer or Settlement Officer for a more specific timeframe.

REFERENCE SOURCE:

https://www.irs.gov/compliance/appeals/what-can-you-expect-from-appeals

A positively rating is greatly appreciated. Thank you in advance.

Ask Your Own Tax Question
Customer reply replied 1 month ago
Ok, well I have already read all that. I am looking for a real tax attorneys opinion on how to proceed. Thank you.

Would you like for me to opt out and release the question back into the queue to see if you can get a response from a Tax Attorney?

Ask Your Own Tax Question
Customer reply replied 1 month ago
Sure, but only if someone can help me

I can't guarantee you that, but we do have some Tax Attorneys on the site. The question will go back into the queue and will remain there until someone else clicks on it to answer. You may or may not get another response right away, and if others feel that they cannot offer any different information, you may not get a response.

Ask Your Own Tax Question
Customer reply replied 1 month ago
Ok

We do not receive credit for assisting unless we are positively rated. However, as you require additional confirmation, I will opt out and count this as my charity for the day.

Ask Your Own Tax Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,885
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

HI, MY NAME’S LANE - I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice 1986

...

I agree with the your assessment/intuition that you should not grant the extension.

...

As has been pointed out, if you know that the income has been reported accurately, then you have no REASON to grant them the extension.

...

Further, the length of time necessary to get a response from appeals is irrelevant here. Once you send in the Form 12153 all time lines stop ... giving appeals division the time it needs to make an assessment of your case.

...

Further, Appeals is separate from and independent of the IRS Collection office that initiated the collection action. Appeals ensures and protects its independence by adhering to a strict policy of prohibiting certain ex parte communications with the IRS Collection office or other IRS offices, such as discussions regarding the strengths or weaknesses of your case (See Rev Proc 2012-18 )

...

I would NOT grant the extension, and then have the appeals form ready if they do send an assessment notice.

Ask Your Own Tax Question

The two main procedures are Collection Due Process and Collection Appeals Program.

Collection Due Process (CDP) is available if you receive one of the following notices:

...

• Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320

• Final Notice - Notice of Intent to Levy and Notice of Your Right to a Hearing

• Notice of Jeopardy Levy and Right of Appeal

• Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing

• Post Levy Collection Due Process (CDP) Notice

...

Collection Appeals Program (CAP) is available for the following actions:

• Before or after the IRS files a Notice of Federal Tax Lien

• Before or after the IRS levies or seizes your property

• Termination, or proposed termination, of an installment agreement

• Rejection of an installment agreement

• Modification, or proposed modification, of an installment agreement

...

Again, appeals will "stop the locomotive," IF they actually assess.

Ask Your Own Tax Question
Customer reply replied 1 month ago
once the appeals request starts, the statute of limitations doesn't apply? They said we need to extend the time frame to allow us sufficient time for appeals before the statute runs out for the 2014 audit.

That's right as well. DO NOT need to grant an extension in order to file an appeal. BUT once the appeal starts, the statutory clock is tolled

Ask Your Own Tax Question

(Right. meaning that the clock stops ticking while in appeals - it's doesn't re-set it either)

...

It's NOT right that you have to grant the extension to do the appeal. Just send in the appeal before the time period is up.

Ask Your Own Tax Question
Customer reply replied 1 month ago
Would you have information on a tax attorney in my area. Shoukd I hire one to do this process vs my accountant

I would ... they will have access to the IRS E-Services which will allow them to fax in the appeals form. What's your area?

Ask Your Own Tax Question
Customer reply replied 1 month ago
Sacramento, ca
Customer reply replied 1 month ago
Do they have to grant an appeal?

No, but they have to grant the hearing. Gives you a second set of (typically more reasonable) ears. If a tax attorney requests, you'll get the opportunity to have them look at your case.

...

https://www.linkedin.com/in/dennisbrager/ (LA Area but excellent)

Ask Your Own Tax Question
Customer reply replied 1 month ago
That's a little confusing to me. They have to grant a hearing but not an appeal. What's the difference?

Granting an appeal means that you're appeal is affirmed. That whatever you're appealing is found to be valid and you have a successful outcome.

...

I GAVE you the criteria for requesting an appeal. ANYONE meeting that criteria can request an appeal (Either CAP or CDP depending on your situation)

...

http://www.mwattorneys.com/ <- I have no association, but they have an excellent track record

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,885
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 1 month ago
Ok. Thank you.
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,885
12,885 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
I have been audited for business property taxes for 2016 &
I have been audited for business property taxes for 2016 & 2017. How far back can the auditors go to gather information. Tennessee Sales and Use auditors are restricted to 3 years. These guys are look… read more
Shan-Nel Simmons
Shan-Nel Simmons
Tax Professional/Owner
Master\u0027s Degree
27 satisfied customers
My brother in-law is a non US citizen, non-resident. He
Second opinion] My brother in-law is a non US citizen, non-resident. He would like to gift my wife and adult children $100K each. He would like to use money he has invested in the US. Would he have to… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
738 satisfied customers
My brother in-law is a non US citizen, non-resident. He
My brother in-law is a non US citizen, non-resident. He would like to gift my wife and adult children $100K each. He would like to use money he has invested in the US. Would he have to file a gift (fo… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
I run a non-profit that lost its status due to not filing
I run a non-profit that lost its status due to not filing 990. We are still in business. Can I sell the business since it is not technically a non-profit now and the new owner operate under a new non-… read more
Lane
Lane
JD, CFP, MBA, CRPS
12,885 satisfied customers
I have a schedule e form that I filed for extension (2016).
I have a schedule e form that I filed for extension (2016) . I attempted to send in time online but was thwarted by my own incompetence to follow directions basically. I saw that if I used a free form… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I filed for an extension to file my 2017 income tax return.
I filed for an extension to file my 2017 income tax return. I recently suffered a stroke - 6 weeks ago - and have been unable to finalize my return. I should be able to file it within the next 30 days… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
How can I get an extension to file federal and state taxes
How can I get an extension to file federal and state taxes for 2016 … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
REGARDING THE FEDERAL TAX LAW INTHE US. IF ONE RECEIVES
REGARDING THE FEDERAL TAX LAW INTHE US. IF ONE RECEIVES ALIMONY PAYMENTS, WHAT CAN QUALIFY AS TO ***** REDUCE THE TAX ON THE ALIMONY RECEIVED ? CAN BUSINESS LOSES BE CARRIED OVER TO REDUCE THE TAX ON … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I filed for federal tax extension and was approved, file
I filed for federal tax extension and was approved, file under married separate, after divorce finalized, in divorce decreed I am to file singe from 2016 forward, so do I have to complete the extensio… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
738 satisfied customers
Does an LLC need to file K-1 forms if they claim no profit
Does an LLC need to file K-1 forms if they claim no profit or loss? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
Is there a statute of limitation for sales tax in ohio?
Is there a statute of limitation for sales tax in ohio? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
I have an IRS tax lien and making installment payments. I am
I have an IRS tax lien and making installment payments. I am likely to win a lawsuit within the next year. Can IRS attach my settlement? … read more
Lane
Lane
JD, CFP, MBA, CRPS
12,885 satisfied customers
I have 2015 federal tax lien that has been paid. As of July
I have 2015 federal tax lien that has been paid. As of July 1 , it has fallen off my transunion and experian credit reports as if it never happened due to the new credit reporting rules. It is still s… read more
Lane
Lane
JD, CFP, MBA, CRPS
12,885 satisfied customers
Do you have knowledge on tax laws regarding non profit
Do you have knowledge on tax laws regarding non profit donations and so forth? … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
738 satisfied customers
How do I remove a federal tax lien. I no longer own the
How do I remove a federal tax lien. I no longer own the property. Transferred to spouse in divorce… read more
Lane
Lane
JD, CFP, MBA, CRPS
12,885 satisfied customers
I have a federal tax lien,filed with,levy,just got divorced,
I have a federal tax lien,filed with,levy,just got divorced, do i have to pay alimony payments. … read more
Lane
Lane
JD, CFP, MBA, CRPS
12,885 satisfied customers
Tax question: I have an installment agreement with the IRS
Tax question: I have an installment agreement with the IRS for past tax years (2014-15) and have been paying $500 a month on about $27,000, For this past tax year (2016) I paid my tax bill in full wit… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
TAX: Is there a statute of limitations for filing tax
TAX: Is there a statute of limitations for filing tax returns? Taxpayer has not filed since 2005 and wants to file 2006 - 2014. 2015 and 2016 are filed.… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x