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 you don’t agree and don’t file a petition during the 90-day or 150-day period, the amount shown in the Notice of Deficiency or Notice of Employment Tax Determination Under IRC §7436 will be assessed and you must make arrangements for payment. Under no circumstances will a penalty be charged for not signing the consent to extend the assessment statute of limitations.
As an alternative, you can pay the disputed amount of tax and file a claim for refund. The claim must be filed within the period of limitations for filing claims; however a timely filed claim can be examined, reviewed, and appealed after the period for filing claims has expired. Of course, if you wish, you can take your case to the United States District Court or the United States Court of Federal Claims within the period specified by Internal Revenue Code Section 6532. That section requires that you wait at least six months after filing your claim with the Service before you may file suit, and also requires you to file the suit within two years of receiving a notice that your claim has been disallowed
IRS Publication 1035 (TTT 05/04/2021)