IRS 872-T Explained

What is IRS 872-T?

IRS 872-T is a tax form used by the Internal Revenue Service to formalize the extension of the statute of limitations for the assessment of tax. This form is primarily utilized when a taxpayer and the IRS agree to extend the period during which the IRS can assess additional taxes or penalties. Taxpayers or tax professionals may find themselves dealing with IRS 872-T when there are pending audits or unresolved tax issues.

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Purpose of IRS 872-T

The primary purpose of IRS 872-T is to allow taxpayers to extend the time frame in which the IRS can audit or assess a tax return. This extension can benefit both the taxpayer and the IRS by providing more time to resolve outstanding issues or disputes. By submitting this form, a taxpayer effectively agrees not to raise the statute of limitations as a defense during audits, allowing the IRS to focus on resolving tax matters without the pressure of imminent deadlines.

Where is IRS 872-T used and by whom?

IRS 872-T is used in various situations involving tax assessments. Here’s a breakdown of typical use cases by different user groups:

1.

Individuals: Taxpayers who are under audit by the IRS may use this form when they negotiate an extension for the assessment period.
2.

Businesses: Corporations facing potential audits or disputes regarding their tax returns might use IRS 872-T to extend the assessment timeline, providing more time to settle tax discrepancies.
3.

Tax professionals: Accountants and tax advisors often handle IRS 872-T on behalf of their clients to facilitate discussions with the IRS regarding audits.

In each case, the form serves as an important tool for managing tax compliance and audit processes effectively.

Step-by-step: how to fill out IRS 872-T

Completing IRS 872-T is straightforward. Below is a step-by-step guide:

1.

Download the form: Start by obtaining IRS 872-T from the official IRS website or using a document management tool like pdfFiller.
2.

Fill in taxpayer information: Enter your name, address, taxpayer identification number, and any other required personal information.
3.

Provide details of the agreement: Indicate the specific tax years or periods that the extension applies to. Be precise with dates.
4.

Sign and date: Be sure to sign the form and date it properly, confirming your agreement to the extension.
5.

Review and submit: Before submission, double-check all information for accuracy.

Using pdfFiller can streamline this process, as it allows users to fill out and edit the form electronically, ensuring all entries are clear and legible.

Who is required to complete IRS 872-T?

Individuals or entities required to complete IRS 872-T include:

1.

Taxpayers undergoing an audit who seek to extend the statute of limitations.
2.

Businesses that need more time for the IRS to assess taxes on prior returns.
3.

Tax professionals acting on behalf of clients dealing with unresolved tax issues.

Any taxpayer with pending audits or disputes where the IRS requires additional time for assessment is obligated to consider this form.

Information you need to complete IRS 872-T

To complete IRS 872-T successfully, gather the following information:

1.

Taxpayer's name
2.

Taxpayer identification number (Social Security number or Employer Identification Number)
3.

Address
4.

Specific tax years or periods for which the extension applies
5.

Signature and date

Having accurate information at hand ensures a smooth completion process and helps avoid delays or complications with the IRS.

How to submit IRS 872-T

Submitting IRS 872-T can be done through various channels. Here’s how:

1.

Mail: Send the completed form to the appropriate IRS address based on your location and the context of your tax situation.
2.

Online submission: Depending on the IRS guidelines, you may be able to submit the form electronically through the IRS website.
3.

Follow deadlines: Ensure you submit IRS 872-T before the expiration of the original statute of limitations on your tax return to avoid complications.

Check the IRS website or consult with a tax professional to verify the correct submission method and any deadlines that may apply.

When to update or refile IRS 872-T

There are specific instances when it may be necessary to update or refile IRS 872-T:

1.

If there are changes in your business details, such as an address change or organizational restructuring.
2.

When new tax periods become relevant that require an extension.
3.

If the original agreement needs revision due to changes in the audit circumstances.

Keeping your submission current helps maintain compliance with IRS requirements and ensures that all details reflect your latest situation.

What happens if you don’t file IRS 872-T?

Failing to file IRS 872-T can lead to several potential issues:

1.

Limited time for audit: Without the extension, the IRS may be required to assess taxes within the standard statute of limitations, limiting your options.
2.

Increased penalties: Possible penalties or additional tax assessments may arise if the IRS determines that there are discrepancies in your returns.
3.

Compliance issues: Non-filing can lead to compliance problems with the IRS, which may escalate into more significant legal or financial repercussions.

Overall, omitting IRS 872-T could complicate the resolution of any tax issues, making it vital to consider this form when dealing with audits or assessments.

Fill out IRS 872-T online

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Frequently Asked Questions About the IRS 872-T

What is IRS 872-T and when is it used?

IRS 872-T is a form issued by the Internal Revenue Service that allows for the extension of time for tax assessments. This form is typically used in instances where the IRS needs more time to review a taxpayer's situation before concluding an audit or assessment. Understanding the implications of IRS 872-T is crucial for taxpayers facing potential adjustments to their assessments.

How do I complete the IRS 872-T form correctly?

Completing the IRS 872-T form requires personal and financial information to be accurately reported. It's essential to include your Taxpayer Identification Number (TIN) and the relevant tax year for which you are requesting an extension. Misstating or omitting any details can lead to delays or rejections, so carefully reviewing the instructions provided with the IRS 872-T before submission is key.

What happens after submitting the IRS 872-T form?

After you submit the IRS 872-T form, the IRS will review your request for an extension of time for assessing your taxes. You should receive a confirmation from the IRS acknowledging your submission. If the extension is granted, the IRS will inform you of the new timeline for the assessment, ensuring you are aware of the modifications to your tax obligations.

Can I withdraw my IRS 872-T request once submitted?

Yes, you can withdraw your IRS 872-T request as long as the IRS has not yet finalized an assessment based on that extension. To do this, you will need to submit a written notice to the IRS indicating your intent to withdraw the request. This process is vital for any taxpayer who wishes to move forward with their original assessment timeline.

What are the consequences of not using the IRS 872-T form when necessary?

Failure to use the IRS 872-T when needed can lead to significant repercussions, such as the IRS issuing a final assessment without fully considering your circumstances. This could result in an increased tax liability or penalties if they determine additional tax is owed. Therefore, it is essential to utilize the IRS 872-T to ensure a fair review of your tax situation.

Is there a deadline for filing the IRS 872-T form?

Yes, there is a specific deadline for filing the IRS 872-T form, typically aligned with the end of the standard statute of limitations for the tax year in question. To avoid missing the window, taxpayers should file the form as soon as they identify the need for an extension in a timely review. Reviewing IRS guidelines will help ensure compliance with these deadlines.

Who should file the IRS 872-T form?

The IRS 872-T form should be filed by tax professionals or individuals who are undergoing an IRS audit and require more time for the IRS to evaluate findings. This includes individuals wanting to contest an assessment or businesses seeking clarity during IRS investigations into potential discrepancies. Accurate filing ensures that the taxpayer is given due consideration by the IRS.

What information is crucial to include on the IRS 872-T?

Crucial information for the IRS 872-T includes your name, address, Social Security Number or Employer Identification Number, and details relevant to the tax period in question. Additionally, explaining the reason for the request can provide context that might expedite the processing. Ensure all information is current and accurate to avoid processing delays.

Are there any fees associated with submitting the IRS 872-T form?

There are no fees directly associated with filing the IRS 872-T form itself. However, you should be aware of any potential costs related to tax advice or representation if you seek assistance with your tax matters. It is beneficial to consult with a tax professional if you have questions regarding complications that may arise after IRS 872-T submission.

Where can I find more information about the IRS 872-T form?

More information about the IRS 872-T form can be found directly on the IRS website, which offers guidance on the use, completion, and submission of the form. Additionally, trusted tax preparation resources often provide insights and detailed articles on how IRS 872-T fits into the broader context of tax compliance. Engaging with tax professionals can also clarify specific questions.

Author:

by Iryna Marchuk

Lead Writer/Blogs Manager at airSlate

Disclaimer: This content is for informational purposes only. It is not legal or other professional advice. airSlate provides this material on an "as-is" basis and disclaims all representations, guarantees, or warranties, whether express, implied, or statutory, including but not limited to warranties of merchantability, fitness for a particular purpose, or accuracy.