What would you do if the IRS had to examine you? And do you think you can handle it? The answer is simple, yes you can. For the most part, multiple IRS audits make people nervous but now you can look for the best Orange County irs audit lawyer online.
Image Source: Google
One of the most common misconceptions is the length of time the IRS can review you. In principle, your SPT can only be reviewed for a maximum of three years after submission or when the SPT is due, whichever happens later.
However, the IRS typically reviews tax returns two or more years after filing them before conducting an audit and only gives them one year to review tax returns and not file returns. In this case, the IRS usually applies for an extension and requires the taxpayer to sign written approval for the extension.
At first glance, it looks like you can turn down a renewal request, but in reality, procrastination rarely benefits taxpayers. If you refuse an extension, the IRS will usually arrange a check in their favor. This will force you to appeal or go to court.
So what do you do when you receive an IRS extension request? In fact, you can do two things. One way is to agree to an extension but limit the time to a year or less. The second is to agree to an extension, provided that the extension only addresses certain issues.
Let's say the IRS is checking your home. You can only approve home extensions. The benefit of the latter type of extension is that if the IRS finds something out after the statute of limitations has expired, the IRS will not be able to assess your tax return.