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 to sign the consent extending the period of limitations for certain employment taxes or certain miscellaneous excise taxes, the IRS will normally assess the tax. Generally, your only recourse is to pay the tax when assessed. You may then file a claim for refund within the applicable statutory period of limitations, and upon our disallowance of the claim or six months from the date the claim is filed, file suit in a United States District Court or the United States Court of Federal Claims. A refund suit must be filed no later than two years from the date of the mailing by the Service of the notice of claim disallowance, unless you and the Service agree in writing to extend the period for filing suit. Form 907, Agreement to Extend the Time to Bring Suit, is generally used for this purpose. (Note, however, that if you execute a written waiver of this notice requirement, the two year period runs from the date the waiver is filed. A waiver is generally executed on Form 2297, Waiver of Statutory Notice of Claim Disallowance). The IRS will consider a claim for abatement of the assessment of c e r t a i n employment taxes or certain miscellaneous excise taxes if a jeopardy assessment (see jeopardy assessment, below) is involved or you establish a meritorious reason for the Service to consider the claim for abatement.
Additional information concerning your appeal rights is contained in Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund. Appeal procedures for adverse determinations in Tax Exempt and Government Entities Division cases are explained in Publication 1020 and Publication 892. Copies of the publications and notice are available from the Internal Revenue Service, free of charge, by calling 1-800-829-3676
IRS Publication 1035 (TTT 05/11/2021)