Which Form?

[AccTaxMan]

A business has incurred loss 3 years in a row. And I remember there is a form to be filed in order to postpone a possible audit to 5 years. What is the form number?

[veritas]

has your client

A business has incurred loss 3 years in a row. And I remember there is a form to be filed in order to postpone a possible audit to 5 years. What is the form number?

Been notified by the IRS to disallow deductions resulting in the loss?

[Roland Slugg]

I believe the form you want is 5213.

[AccTaxMan]

Been notified by the IRS to disallow deductions resulting in the loss?

No, never received any notification from the IRS.

My understanding is that a business would presumably considered a hobby if it incurred a loss 3 years in a row. And such situation would also lead to an audit. But then if the taxpayer files a Form 5213, the IRS would give 2 more years. Is my understanding correct?