I do agree with you that Larry should comply with the IRS request. Even if it means going through the motions. If Larry has nothing to hide, he should comply but he'd be very wise to inquire the lawful reasonable and/or probable basis for this audit. That's my point being made on this. The IRS has no lawful jurisdiction in this Country to begin with let alone intruding on the privacy of ANY private citizen. That is a fact.
Another topic, about which, you obviously haven't a glimmer of an idea about.