Should You Grant IRS More Audit Time by Robert W. Wood – Article Example

The paper "Should You Grant IRS More Audit Time by Robert W. Wood" is a good example of an article on finance and accounting. The article entitled Should You Grant IRS More Audit Time was written by Robert W. Wood, a Tax Lawyer, proffered issues that focus on the subject of extending the time for the IRS to review the tax due from one’s income. As advised, if the IRS sends an advice seeking for an extension in the period (statute of limitations), normally within three years, to review one’s tax account, Wood provided the following guidelines, to wit: (1) to grant the extension; (2) to abide by IRS safeguards; and (3) to keep and maintain records. Wood acknowledged that the IRS has stipulated time limits, normally three years, but could be extended to at most six years due to adverse findings (such us “substantial understatement of income” (Wood, 2009)). If therefore an extension is sought with regards to the stipulated time period within which to further review one’s tax account, Wood recommended that the extension is granted. Otherwise, he averred that “you may be able to limit the scope of the extension to certain tax issues, or limit the time (say, an extra year).  Seek professional tax help if you receive such an inquiry” (Wood, 2011, par. 6). The author also indicated that the IRS is obliged to follow regulations to notify taxpayers of their rights when they are requested to extend the assessment statute which he acknowledged can be reviewed and accessed through Audit Report No. 2011-30-055 (Wood, 2011, par. 7). Finally, the most relevant and sound advice is to maintain and keep good records of filing tax returns; including receipts, certified mail, courier confirmation, proof of electronically filed returns, among others. Wood likewise emphasized to “never destroy old tax returns” (Wood, 2011, par. 9) as they could still be used to support future transactions that require verifications regarding tax returns made in previous years.