Question: Armand filed his 2018 individual tax return on April 1, 2019. On February 5, 2022, the IRS examiner asked that Armand sign a Form 872 to extend the statute of limitations for 3 months beyond the close of the statute of limitations so that a more thorough exam of Armand's Schedule C, sole proprietorship can be completed.
1. What would be the incentive for Armand to agree to sign the Form 872 to consent to the extension?
2. If Armand did sign the extension, by what time must the Service notify Armand of any assessment?
3. Is it possible for Armand to only extend the statute of limitations for purposes of auditing his Schedule C items?