After an IRS audit has been completed you will generally think of yourself as home free with respect to that year. Theoretically, you are not really home free until the statute of limitations has run unless you have entered into a closing agreement (Closing agreements are pretty rare.) The IRS, though, is limited in its ability to reaudit you:
I.R.C. �� 7605(b) provides that ��[n]o taxpayer shall be subjected to unnecessary examination or investigations, and only one inspection of a taxpayer’s books of account shall be made for each taxable year unless the taxpayer requests otherwise or unless the Secretary, after investigation, notifies the taxpayer in writing that an additional inspection is necessary.��
They have set out standards for when a second examination might be called for:
In over thirty years, I have never run into them trying to take a second bite at the same apple.? That is why I find LAFA 20114701Fso disturbing.? They are auditing the taxpayer on the same issue as a previous audit on a closed year, but not considering it a second examination.? So how can that be happening ?? The taxpayer is carrying back a net operating loss into that year.? The year was already audited:
?The planning point here is that if you think there is anything sketchy about the carryback year, you may want to consider electing to carry the net opertating loss forward.? Remember that is an election that needs to be made with a timely filed return.
No comments:
Post a Comment