itemized deductions, then the disallowance of all the itemized deductions and allowance of the standard deduction amount would be indirect consequences of the adjustment.1079 Comment: It may not be to a taxpayer's advantage to be arbitrary regarding an extension of the period of limitations, because the IRS generally has effective procedures to protect itself against the running of the statute. However, circumstances sometimes force a practitioner to refuse to execute a consent, as when an agent has unduly prolonged an examination, or when the examining agent arrives at the very end of the statutory period for a tax year and requests time to make a general examination of the return for that year. The addition of §6501(c)(4)(B) strengthens the taxpayer's hand in dealing with requests for extensions of the period of limitations. Taxpayers and their advisors will likely avoid making open-ended extensions and limit extensions to fixed (and short) periods and to particular issues, where possible. 3.
Miscellaneous Consent Procedures a.
Refund Claims —
A claim for refund may be filed during the time a consent agreement is in effect, plus an additional six months thereafter.1080 In cases reopened by a taxpayer filing a claim for refund, the IRS should not request that the taxpayer file a consent to extend the period of limitations unless an examination of the returns and case file indicates that a redetermination of the tax liability may result in a tax deficiency.1081 b.
Multiple Tax Years —
A single Form 872, Consent to Extend the Time to Assess Tax, may be used for multiple tax years1082 unless: (1) the taxpayer's name is different on the returns filed or the tax years covered involve joint and separate returns of a husband and wife; (2) extension dates requested for all years covered are not made to the same date; (3) restricted issues are not identical for each year covered; or (4) the kinds of tax differ.1083 c.
Parent and Subsidiary Corporation Consents —
(1) One consent may be used to extend the statute for a parent corporation and any or all of its subsidiary corporations that filed separate returns. No fixed percentage of ownership by the parent corporation is required. For one consent to cover the parent and subsidiaries, a rider1084 which lists all the corporations covered by the consent must be attached to the consent.1085 (2) For consolidated income tax returns, one consent will suffice to cover all companies included in the consolidated income tax return.1086 (3) The IRS may obtain a single consent for more than one year even though the composition of the group may have changed during the period covered by the consent. This is so even if the parent of the group has changed; however, the years included on a single consent must be years during which the group is considered to have remained in
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