No. Once the year being examined is "closed" (examination is complete and any adjustments made) that same year cannot be opened again.

Of course! The IRS will want you to pay right away, and if you have the money you should pay it and avoid additional interest and collection actions. If you can’t pay the additional tax, a monthly installment agreement can be arranged. Interest will accrue while you are making your monthly payments.

If the examiner determines that you understated your income or overstated your deductions she will adjust your taxable income and you may owe additional tax, interest and penalties. However, if all the items being reviewed are substantiated then your tax return will be accepted as filed and you will get a letter of "no change" meaning no adjustments were made.

In some cases, additional deductions can be found that were never taken on the original tax return which would result in a refund to the taxpayer.

The statute of limitations to examine a tax return is three years from the date the return was filed, or the date the return was due (whichever is later).

If you normally file on time (April 15th) then a tax return for 2005 filed on April 15th 2006 cannot be examined after April 15th 2009. However, if you filed your 2005 return on January 3rd 2007, the statute will not run out until January 3rd 2010 (three years from date of filing).

If you did not file any tax return at all for a tax year, it can be audited indefinitely.

If the disallowance is unwarranted, we would either ask for a review by the group supervisor or appeal the findings.