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Am I Thinking Unreasonably? (IRS AUDIT)


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In the past 2 weeks 2 clients have received plan audit notices.  Thankfully they are only PS plans, nothing more. But get this....I just received a call from the 2nd client who got the audit notice.   He is in the hospital following a blind fall down the stairs in the dark in the middle of the night.  He is in rehab with a concussion, 2 fractured vertebrae, and cracked ribs.  Poor guy, he just retired last month! 80 years old! 

So he called the agent conducting the audit explained the situation and  requested the audit be postponed and the agent said no!  He said to give someone power of attorney.  Is it unreasonable to request the audit be postponed?  Is this normal that the IRS would not grant a postponement based on these circumstances?

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In the past I've found that most IRS auditors are flexible if you need an extension for a valid reason, which it seems this client has. Especially if the request for extension has a specific time you will respond. Like the initial letter says supply this information by X date and the client says "due to (reason) we request a extension to X +20 days" or something like that.  I have not had a problem in the past, but every auditor can be different.

I think though that if the client believes the auditor is being unreasonable, they can can contact the manager to discuss the situation

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If possible - the request should be in writing, even if just a quick fax to the agent asking for more time. 

I think there are a few different things that might be going on - is the audit notice just a request for information? Or does it have an appointment date (for either in-person or over the phone)? 

If it includes an appointment date, its possible the date is far enough in the future that the auditor isn't able to justify an extension?  

If just an audit notice / information request with no appointment date, then how far out is the date that the information is due?  standard extension for the due date for an information request is only 10 days. More than that and a manager definitely has to be involved. At least that's been my experience the last few years. 

The last few years it seems auditors have come from all around the country to audit plans and they make several appointments for a single trip, so those ones have been less flexible when a change of date has been requested by the sponsor. Agents from the local office, if they are doing the audit, are able to be more flexible for accommodating requests to change the appointment dates. Just my experience. 

I'm a stranger on the internet. Nothing I write is tax or legal advice. 

I'd like a witty saying here, but I don't have any. When in doubt, what does the plan document say?

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15 hours ago, justanotheradmin said:

The last few years it seems auditors have come from all around the country to audit plans and they make several appointments for a single trip, so those ones have been less flexible when a change of date has been requested by the sponsor. Agents from the local office, if they are doing the audit, are able to be more flexible for accommodating requests to change the appointment dates. Just my experience. 

Came here to say exactly this.  I'm not a fan of this idea of sending auditors around the country idea.

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On 3/18/2024 at 6:45 PM, justanotheradmin said:

The last few years it seems auditors have come from all around the country to audit plans

Really?  That's ridiculous.  I assumed the agents in both audits were local.  

If we can't arrange a time that works I guess we will reach out to the supervisor.  Thanks!

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