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WITAXLADY

look it up - 2014 audit closes when pls?

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1 - so if I disagree with audit results and I have a letter to have client sign to agree - when does this year close?  I filed an amended 2014 on Aug 17, 2015

so do I have 3 years from the amend?

2 - Contested is whether when timber is sold is if that becomes real property for purposes of 8903 - DPAD or stays personal property which qualifies...

anyone familiar with DPAD?  Thx D

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7 hours ago, WITAXLADY said:

2 - Contested is whether when timber is sold is if that becomes real property for purposes of 8903 - DPAD or stays personal property which qualifies...

anyone familiar with DPAD?  Thx D

Depends on how the timber was treated on the tax return.  If treated as ordinary income then DPAD.  However if treated as capital gain, such as in the case of a Section 631(a) election, then considered sale of real property and  not a DPAD.

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An audit closes 90 days after the final determination is issued.  If you don't agree with the audit results, don't have your client sign off on accepting it.  Did the client have any representation at the audit?  If not, the audit can be reopened with an audit reconsideration after the 90 days have passed.

The 90 days is to allow time to file a tax court petition. 

 

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3 hours ago, WITAXLADY said:

client did not sign off - never had chance for representation??

Prior to an audit, the IRS notifies the taxpayer of pending audit, tells what is being audited and sets a date for the audit.

The letter is sent to the taxpayer's last known address  If the client moved and didn't notify th IRS, too bad.  An audit reconsideration can be submitted, which is all done through correspondence.

 

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