Form 872: what the consent to extend the assessment statute says, who signs it and when to limit it

The IRS does not post Form 872 on IRS.gov. The examiner or Appeals officer prepares it for the specific taxpayer, periods and date, and IRM 25.6.22.5.2 states “The consent must be prepared by the IRS, not by the taxpayer or the taxpayer's representative.” The description below is drawn from the IRM, IRC 6501(c)(4) and Pub 1035.

When Form 872 is used (and when another consent applies)

IRC 6501(c)(4)(A) allows the tax to be assessed after the normal period when, before it expires, “both the Secretary and the taxpayer have consented in writing to its assessment after such time.” Form 872 is that written consent for income tax and most other taxes. For the three-year rule and its exceptions, see the assessment statute of limitations.

The IRS says it asks only when it must. IRM 25.6.22.2.1 states “It is the policy of the IRS to secure consents to extend the period to assess tax only in cases involving unusual circumstances,” requires group manager approval before an examiner requests one, and lists the usual triggers: the statute will expire within 180 days without enough time to finish the exam, the case needs to go to Appeals, an LB&I large case is within 300 days, or the case is in fraud or other suspense. The Appeals trigger is the most common for small cases. The IRM note says there must be at least 395 days left when a case reaches Technical Services and “at least 365 days remaining on the statute of limitations when the case is received by Appeals.” Manager approval is not needed to solicit a consent solely so a case can go to Appeals. See the 365-day rule.

Form 870 and Form 4549 are not consents. IRM 25.6.22.2 says signing those forms “does not extend the period of time to assess tax.” See Form 870.

The parts of the consent

IRM 25.6.22.5 describes what each element of the consent must contain. Because the IRS prepares the form, the practitioner's job is to check each element before the client signs.

NameTaxpayer's name

As shown on the return as filed, with no abbreviations unless the return used them; a former name is added after a name change (IRM 25.6.22.5.3). For a joint return, both spouses' complete names are shown separately (IRM 25.6.22.6.1.1). A corporation's name must match its charter (IRM 25.6.22.6.2).

TINTaxpayer's SSN or EIN

Shown in the upper right corner (IRM 25.6.22.5.9), along with the identification of the IRS person requesting the consent (IRM 25.6.22.5.10).

AddressTaxpayer's address

The current address, not necessarily the address on the return; the IRM says the last known address concept is irrelevant to executing consents (IRM 25.6.22.5.5).

TaxKind of tax

Each separate kind of tax must be named. A consent limited to income tax does not cover a separate tax such as Chapter 43 excise taxes reported with the return (IRM 25.6.22.5.4).

PeriodTax period(s)

Stated in full with month, day and year, such as December 31, 2024; one form can cover several periods only if the name, kind of tax, restrictions and extension date are the same for all (IRM 25.6.22.5.6 and 25.6.22.5.6.1).

DateExpiration date

The fixed date to which the assessment period is extended, written as month, day and year (IRM 25.6.22.5.7). Pub 1035 says the IRS requests a period no longer than necessary to finish the exam and any administrative action.

LimitsRestrictive language (if any)

Restrictions must be typed on the form or clearly referenced. Paragraph (5) of Forms 872 and 872-A says the form contains the entire terms of the consent, so side agreements are not binding (IRM 25.6.22.5.12).

RightsYour Rights as a Taxpayer

The notice required by IRC 6501(c)(4)(B): the right to refuse, to limit the extension to particular issues, and to limit it to a particular period (IRM 25.6.22.3).

SignTaxpayer signature and date

Signed the way the return was signed. Both spouses sign for a joint return; a corporation signs with its name followed by an empowered officer's signature and title. A representative can sign only with a power of attorney that specifically authorizes signing consents (IRM 25.6.22.5.8 and 25.6.22.5.8.1).

IRSIRS signature and date

Signed by an official delegated under Delegation Order 25-2, manually or digitally, with title and date (IRM 25.6.22.5.11). The consent is not effective until the IRS signs before the statute expires.

How it is delivered and returned

The IRS sends the consent in duplicate with a transmittal letter: Letter 907 (or Letter 967 from Appeals) and Pub 1035. IRM 25.6.22.4.2 says the taxpayer is generally allowed at least 10 calendar days from the date of the letter to respond. When the taxpayer has a representative, the representative receives the consent and a copy of the letter with Letter 937 (IRM 25.6.22.3). The taxpayer signs and returns the original and duplicate to the employee who sent them; the IRS official signs and returns an executed copy, often with Letter 929.

Faxed signatures are treated as originals if the IRS employee made phone or in-person contact, documented it, and noted the taxpayer wanted to fax the consent (IRM 25.6.22.5.1). Do not mark up the form: IRM 25.6.22.5.2 says a taxpayer-altered consent will generally be replaced with a new one, and Pub 1035 asks taxpayers to discuss changes with the employee so the IRS can prepare a new form.

1. Compute the current ASED yourself from the transcript and the filing date before responding.
2. Check every element in the table above: names, TINs, kind of tax, periods and the expiration date.
3. Decide among signing, negotiating a shorter date or restricted issues, or declining, and document the client's decision.
4. If a representative will sign, confirm the Form 2848 specifically authorizes signing consents for those taxes and periods and predates the signature.
5. Return the signed consent well before the expiration date so the IRS can countersign in time, and calendar the new date.

What the IRS does with it

The consent must be fully executed before the statute runs. IRM 25.6.22.2: “To be valid, the consent form evidencing the agreement to extend the period of time to assess tax must be executed by both the taxpayer and the IRS before the statutory period for assessment expires.” Later consents can extend it again, but each must be signed before the previous date. The executed consent is attached to the return and the new statute date is updated on AIMS.

On receipt, IRM 25.6.22.5.12 has the examiner confirm that the consent is date stamped, properly executed by someone with authority, unaltered and countersigned by a delegated official. If the taxpayer signs but says the signature depends on an unwritten condition, the examiner is told to consult Area Counsel.

If the taxpayer refuses, the IRS protects the statute by other means. IRM 25.6.22.3 says the taxpayer will be told that a statutory notice of deficiency may be issued, and Pub 1035 explains the notice gives 90 days (150 days if addressed outside the United States) to agree or petition the Tax Court. See the notice of deficiency. Pub 1035 also warns that the IRS “cannot provide you with an administrative appeal within the Service unless sufficient time remains on the statute of limitations,” and that a taxpayer who petitions the Tax Court will generally have the opportunity for a pretrial settlement.

Restricted consents are available but not guaranteed. IRM 25.6.22.8.1 says the taxpayer has the right to request one but “The IRS is not compelled in all circumstances to agree to a restricted consent.” Under IRM 25.6.22.8.2 the IRS will normally agree when the unresolved issues are few enough to describe clearly, the other issues are agreed and assessed (usually through a partial agreement on Form 870), an appropriate official approves, and Area Counsel approves the wording. For the strategy of when to agree, restrict or refuse, see Form 872 statute extensions.

Common problems

• Representative signs without authority. The 2848 must specifically authorize signing consents; IRM 25.6.22.5.8.1 warns that otherwise the IRS may be monitoring the wrong statute date.
• Only one spouse signs. The other spouse's statute is not extended.
• Kind of tax too narrow. A consent for income tax only does not reach separate taxes reported on the same return.
• Altered forms and side letters. Handwritten restrictions are not reliable; ask for a new consent with typed, Counsel-approved language.
• Returned too late. If the IRS official cannot countersign before the current ASED, the consent fails and the IRS will issue a notice of deficiency instead.
• Agreeing to 872-A without a plan to end it. An open-ended consent runs until a Form 872-T, a notice of deficiency or a final assessment; keep track of it.

Questions practitioners ask