My client a restaurant owner, received audit notice from CDTFA , with the notice they asked him to sign a "WAIVER OF LIMITATIONS" indicating that:
A Waiver of Limitations that is signed by the taxpayer prior to the statute expiration date extends the three-year statute of limitations (or eight years where no return was filed), for the period indicated on the form. A waiver duly signed by only the taxpayer is still a valid waiver. which mean it will give them the right to extend the audit beyond 3 year statute of limitations. I am sure it's legal for them to ask. However, should my client sign the waiver?  will they retaliate if he didn't?  Does anyone have any experience similar with such situation? Thank you