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IRS Extending the Tax Assessment Period  Interest  Generally, interest continues to accrue on any balance due until full payment is made, including the time for appeal within the Service or the courts. However, for individual taxpayers, interest on an income tax deficiency will stop accruing under certain conditions after 18 months (36 months if the…

IRS Extending the Tax Assessment Period  Jeopardy Assessment (Part III)  Note:  Jeopardy assessments are not made because the period of limitations for assessing the tax is about to expire or because a taxpayer does not consent to extend the statutory period, unless the collection of the tax deficiency or proposed employment tax liability is in…

IRS Extending the Tax Assessment Period  Jeopardy Assessment (Part II)  Jeopardy assessments will be made only if one or more of the following conditions exist:  1. The taxpayer is, or appears to be, planning to depart the United States quickly or to conceal himself/herself;  2. The taxpayer is, or appears to be, planning to place…

IRS Extending the Tax Assessment Period  Jeopardy Assessment (Part I)  Jeopardy assessments are made when the Service believes that collection of a proposed deficiency or employment tax liability will be endangered if the IRS follows their regular procedures (see Internal Revenue Code Sections 6861 and 6862). Jeopardy assessments are used sparingly and only when necessary…

IRS Extending the Tax Assessment Period  Notice of Employment Tax Determination Under IRC § 7436  If the Commissioner makes a determination of certain employment tax issues (worker classification and/ or section 530 determinations), the Commissioner may send a Notice of Employment Tax Determination Under IRC § 7436 to the taxpayer by certified or registered mail.…

IRS Extending the Tax Assessment Period  Notice of Deficiency  If the Commissioner (IRS) determines there is a deficiency of income, estate, gift, or certain miscellaneous excise taxes, the law authorizes the Commissioner to send notice of such deficiency to the taxpayer by certified or registered mail. Certain Service officials are authorized to issue these notices…

IRS Extending the Tax Assessment Period  Your Available Options (Part IV)  When asked to sign the consent extending the statutory period, you have three options with rights and alternatives for each. You have the right to:  · Refuse to sign the consent – Certain employment taxes and certain miscellaneous excise taxes. If you choose not…

IRS Extending the Tax Assessment Period  Your Available Options (Part III)  When asked to sign the consent extending the statutory period, you have three options with rights and alternatives for each. You have the right to:  · Refuse to sign the consent –Taxes other than certain employment taxes and certain miscellaneous excise taxes. (cont)  If…

IRS Extending the Tax Assessment Period  Your Available Options (Part II)  When asked to sign the consent extending the statutory period, you have three options with rights and alternatives for each. You have the right to:  · Refuse to sign the consent –Taxes other than certain employment taxes and certain miscellaneous excise taxes. If you…

IRS Extending the Tax Assessment Period Your Available Options  (Part I) When asked to sign the consent extending the statutory period, you have three options with rights and alternatives for each. You have the right to: Sign an unconditional consent (a fixed-date or open-ended consent that does not limit the examination or appeal activities to…