What is the purpose of IRS Form 872?

Form 872, Consent to Extend the Time to Assess Tax, is the document usually signed to extend the statute of limitation.

Does IRS audit extend statute limitations?

The IRS tries to audit tax returns as soon as possible after they are filed. Accordingly most audits will be of returns filed within the last two years. The statute of limitations limits the time allowed to assess additional tax. It is generally three years after a return is due or was filed, whichever is later.

What do you need to know about IRS Form 872?

Form 872 is fortunately very straightforward, simply requesting your taxpayer identification number (TIN), name, address, and signature. The form will reveal the federal tax due, an expiration date, and your rights as a taxpayer.

What should you do about a form 872 consent to extend time to assess tax?

What should you do about a Form 872 consent to extend the time to assess tax in an Audit Situation? Generally, and with a whole boat load of exceptions, the three-year rule to assess an additional tax beings to run the date you filed a return. Or it was the date it was originally due, in case you filed early. Yes, this rule too favors the IRS.

What is the Statute of limitations for IRS Form 872?

The form issued to you is IRS Form 872- Consent to Extend Time to Assess Tax, one of the many examples of an IRS statute of limitations. This statute of limitations is designed to ensure the timely assessment and examination of tax returns.

How is form 872 used in TEFRA cases?

Versions of the Form 872 series are used in other instances, such as cases involving TEFRA (Tax Equity and Fiscal Responsibility Act of 1982) entities, partnerships, and return preparer penalties. Besides signing the form, what options are available to a taxpayer when presented with an extension request for an income tax case?