The consent form in the middle of the audit
Examiners frequently ask taxpayers to agree to extend the period the IRS has to assess additional tax, usually when an audit will run longer than the time left. Signing is voluntary, but refusing often means the examiner closes the case quickly on the information at hand, which can produce a larger proposed adjustment and a formal notice you then have to contest. The IRS is required to tell you that you may refuse or limit an extension, and a consent can sometimes be restricted to particular issues rather than left open across the whole return. Whether to sign, and on what terms, depends on how the audit is going and on what else more time might bring to light.
Who sits in the interview
In many audits a properly authorized representative can attend meetings and answer for you, and you generally do not have to be present unless the IRS issues a summons for your testimony. That separation matters because casual remarks in an interview are a common way audits expand into new issues or new years. A representative can also ask that requests come in writing and answer them in writing, which leaves a clearer record of what was asked and what was provided. Respond to each information document request accurately and by the date given, or ask for more time before that date passes.
Signs the audit is changing character
Occasionally an examiner finds something that suggests the matter is more than a disagreement over numbers. An audit that suddenly goes quiet after questions about cash, unreported accounts, or records you could not explain sometimes means the case is being reviewed for referral to IRS Criminal Investigation. If anything in your returns worries you beyond honest error, tell your lawyer before the next meeting rather than after it, because statements already made cannot be taken back. When you bring us the audit letter, the requests so far, and anything pending, such as an unsigned consent, we decide together what will be said, what will be produced, and who will be in the room.
