No Means No — The Strategic Power of Declining IRS Requests
What This Video Covers
The IRS does not issue orders nearly as often as people assume. A surprising number of the things the IRS asks taxpayers to do during an audit, an appeal or a collection action are requests — not demands. They are dressed up in government letterhead and written in language that sounds mandatory. But legally, they require your consent. And consent can be withheld.
Key topics addressed include:
- The distinction between mandatory legal obligations and consent-based IRS requests
- Form 872 (Consent to Extend the Time to Assess Tax) — when to sign and when to refuse
- Form 870 (Waiver of Restrictions on Assessment) — what you forfeit when you sign
- The 30-Day Letter — your right to disagree and request an Appeals hearing
- The 90-Day Letter (Statutory Notice of Deficiency) — your right to petition Tax Court
- IRS requests for “voluntary” information beyond the scope of the examination
- Revenue Officer installment agreement proposals that don’t serve your interests
- The statute of limitations as your most powerful silent ally
- What actually happens when you say no — the procedural reality
Why This Matters
The IRS uses a consistent set of pressure tactics — not all of them improper, but all of them designed to produce compliance. Understanding these tactics is the first step toward responding strategically rather than reflexively.
About the Presenter
Benjamin A. Goldburd, Esq.
Goldburd McCone LLP
Benjamin brings focused experience in IRS collection defense, including lien and levy disputes, CDP hearings and negotiated resolutions. Our team’s combined backgrounds in accounting, business and wealth management ensure that enforcement responses account for the full scope of a client’s financial position.
Frequently Asked Questions About IRS Requests
Can I really say no to the IRS?
Yes — to many things. The IRS has certain mandatory enforcement powers (summonses, liens, levies), but a substantial portion of the requests made during an examination or collection action are consent-based. Signing extension forms, agreeing to proposed adjustments, accepting installment terms — all of these require your agreement.
What happens if I refuse to sign Form 872 to extend the statute of limitations?
If you decline to extend the statute, the IRS must complete the examination and issue a determination within the remaining time on the original statute of limitations. In practice, this often means the IRS issues a deficiency notice based on whatever information it currently has — which may be less developed than the IRS would like. You then have the right to challenge that deficiency through Appeals or in Tax Court.
If I disagree with the audit findings, what are my options?
You have a layered set of options, and each one provides an additional opportunity to challenge the IRS’s position. First, you can present additional documentation or arguments to the examiner before the case is closed — sometimes this resolves the issue without escalation. If the examiner’s position does not change, you decline to sign the examination report, and the IRS issues a 30-Day Letter. You then request an Appeals hearing. At Appeals, the case is reviewed independently, and the Appeals officer is authorized to settle based on the hazards of litigation. If Appeals does not resolve the case, the IRS issues a 90-Day Letter (Statutory Notice of Deficiency), and you have 90 days to petition the Tax Court. Each of these steps gives you progressively more leverage. Signing Form 870 at step one eliminates all of them.
Will the IRS retaliate if I refuse to cooperate?
Exercising your legal rights is not non-cooperation. Declining to sign an extension, disagreeing with a proposed adjustment, requesting an Appeals hearing or petitioning the Tax Court are all actions expressly contemplated by the Internal Revenue Code. The IRS cannot penalize you for exercising them. In practice, examiners and Revenue Officers may proceed more quickly to adverse determinations when a taxpayer declines to extend or agree — but those determinations are subject to the same appeal and judicial review rights.