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 specific issues). This provides the Service the same assessment authority and you the same appeal opportunities as available under the original statutory period of limitations.
Please note that the Service may examine any issues relevant to your tax return and make any required tax assessment during the extended statutory period.
- Negotiate consent terms. The Internal Revenue Code does not specify the length of the extension period, or the extent of examination or appeal activities. This flexibility allows you and the Service to negotiate the tax issues covered by the consent and/or the length of the extension period. During any discussions, factors such as the number, type and difficulty of issues, whether issues that are not covered by the consent are agreed, etc., will be considered. Both you and the Service must agree to the terms of the consent and sign the consent form before it becomes effective.
IRS Publication 1035 (TTT 04/20/2021)