The IRS is disputing a deduction reported on your 2012 tax return, which you filed on April 12, 2013. On April 4, 2016, the IRS audit agent asks you to waive the statute of limitations for the entire return so as to give her additional time to obtain a Technical Advice Memorandum. The agent proposes in return for the waiver a "carrot"-the prospect of an offer in compromise-and a "stick"-the possibility of a higher penalty.
Although you have substantial authority for the deduction, you consider the following alternatives: (1) waive the statute of limitations for the entire return, (2) waive the statute of limitations for the deduction only, or (3) do not waive the statute of limitations in any way, shape, or form. Which alternative should you choose, and why?