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Form 872-B (Rev July 2003), (Fill-In Capable)-2026
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Definition and Meaning
Form 872-B (Rev July 2003), also known as a consent form for extending the time to assess miscellaneous excise taxes, is issued by the Department of the Treasury - Internal Revenue Service (IRS). It serves to provide taxpayers an option to extend the timeframe within which the IRS can evaluate and assess specific excise taxes. This form is particularly crucial in ensuring that both the taxpayer and the IRS have adequate time to review and resolve any outstanding matters related to tax liabilities.
How to Use the Form 872-B
To effectively utilize Form 872-B, it's essential to understand its primary purpose, which revolves around consenting to a specified extension period for tax assessment. Taxpayers need to provide their identifying information accurately and should ensure that all sections, including the tax liability details and expiration date of assessment, are meticulously filled out. This form must be signed by both the taxpayer(s) and an authorized IRS official to be considered valid.
Steps to Complete the Form 872-B
Identification Details: Begin by entering the taxpayer's full name, address, and taxpayer identification number (TIN).
Tax Liability Information: Specify the type of excise taxes applicable and the periods that the extension will cover.
Expiration Date: Clearly state the new expiration date for the assessment period.
Signature Lines: Ensure that the form is signed and dated by the taxpayer(s). An authorized IRS official must also provide a signature to validate the extension.
Review: Double-check all entered data for accuracy and completeness before submission.
Legal Use of the Form 872-B
Form 872-B is legally binding once signed by the involved parties. By signing, taxpayers extend the statute of limitations on tax assessments, allowing additional time for audits or resolution of discrepancies. This can be advantageous in complex tax situations where more time may facilitate a favorable outcome or prevent hasty assessments.
Who Typically Uses the Form 872-B
Typically, Form 872-B is used by taxpayers who are engaged in transactions that require the assessment of miscellaneous excise taxes. This can include businesses or individuals who need more time for audits or are involved in industries subject to specific excise taxes. Professionals managing complex financial scenarios, including tax attorneys and accountants, often rely on this form to negotiate extensions with the IRS.
Key Elements of the Form 872-B
- Taxpayer Identification: This section captures the taxpayer’s identity, including their TIN, which is crucial for IRS processing.
- Assessment Period Details: Outlines the excise taxes subject to extension and the specific periods involved.
- Expiration Extension: Specifies how long the statute of limitations will be extended for assessments.
- Signatures: Validates the agreement; must include taxpayer(s) and IRS official’s signatures.
IRS Guidelines
The IRS provides clear guidelines on the conditions under which Form 872-B can be utilized. It specifies the procedures for filling out the form, acceptable methods of delivery, signing requirements, and the tax types applicable. Taxpayers are encouraged to review these guidelines to ensure compliance and to understand their rights and responsibilities under the extension agreement.
Filing Deadlines and Important Dates
The submission of Form 872-B is contingent on reaching an agreement with the IRS before the original assessment period expires. Both parties must agree on new deadlines, and these should be explicitly documented within the form. Missing these deadlines can nullify the extension, reverting the liability to the original dates.
Form Submission Methods
- Online: While this form is fill-in capable, direct online submission is often facilitated through tax professionals or specific online services compliant with IRS regulations.
- Mail: Traditionally, this form can be printed and mailed to the IRS office handling the taxpayer’s account.
- In-Person: In certain cases, submission might be directly handled during face-to-face IRS meetings.
Penalties for Non-Compliance
Failing to comply with the terms set forth in Form 872-B can lead to penalties. If the extension is not honored, or if incorrect information is provided, the IRS retains the authority to proceed with assessments based on original deadlines, which may lead to additional interest or penalties on outstanding tax liabilities.
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What is the purpose of the IRS form 872?
The open-ended consent may be used for cases placed in suspense, scheduled for appeals or other situations where it would be advantageous to both you and the Service to do so. Form 872-A, Special Consent to Extend the Time to Assess Tax, is used for agreeing to an open-ended assessment period.
Can the IRS extend the statute of limitations?
Length of Extension Once the original date under the statute of limitations is extended by a signed consent, it may be further extended by the mutual agreement of the parties before the expiration date of the previous extension period. The fixed-date consent is used for most examination and appeal activities.
What is a form 872 consent to extend?
What is Form 872? Form 872 is a simple form invoice in which the Taxpayer agrees to extend the statute of limitations through the following year (usually), to allow the IRS sufficient time to work the case. They are commonplace in nearly all VDP cases.
Does an IRS installment agreement extend the statute of limitations?
If you request an Installment Agreement (IA), the time the request is pending pushes out, or suspends the running of, the initial ten-year collection period. An IA request is often pending until it can be reviewed, and an IA is established, or the request is withdrawn or rejected.
What stops the IRS statute of limitations?
Interest and penalties may be added onto the original amount owed. However, certain events stop the 10-year statute of limitations from running, including filing for an appeal, filing for bankruptcy, litigation against the IRS, an offer in compromise, and a collection due process hearing.
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People also ask
Can IRS consent to extend statute of limitations?
To be valid, the consent form evidencing the agreement to extend the period of time to assess tax must be executed by both the taxpayer and the IRS before the statutory period for assessment expires.
Related links
Therefore, when filing the new Form 1023, you will not need to submit Form 872-C. A new Schedule E. Organizations Not. Filing Form 1023 Within 27 Months of.
by CD Bell 2013 (1). Form 870 waives your right to litigate in the Tax Court, except in rare situations when later raised issues before the statute of limitations expires