IRS Publication 1035 – Extending the Tax Assessment Period

IRS Publication 1035 – If you’re facing an IRS audit or examination and receive a request to extend the time for assessing taxes, you’re likely wondering what it means and what your options are. IRS Publication 1035, officially titled Extending the Tax Assessment Period, is the IRS’s primary resource explaining this process in plain language.

This free 4-page guide (Catalog Number 46890Q, Rev. September 2017) remains the current authoritative source, as confirmed on IRS.gov pages last reviewed as recently as April 2025. It details your rights, the consent forms, and the consequences of signing or refusing an extension.

Download the official PDF here: IRS Publication 1035 (PDF)

In this comprehensive, SEO-optimized guide, we break down everything from the standard 3-year statute of limitations to Form 872 consents, taxpayer rights, and practical advice based exclusively on official IRS sources.

What Is the Normal Tax Assessment Period?

The IRS generally has 3 years to assess additional taxes after you file your return (or after the due date, including extensions, whichever is later). This is called the Assessment Statute Expiration Date (ASED) or statute of limitations for assessment.

• Example: For a 2021 return due April 18, 2022 (and filed on time), the ASED is typically April 18, 2025.
• If you file late, the 3-year clock starts from the actual filing date.

Key exceptions that automatically extend or remove the limit (per IRS.gov):

• No return filed → No time limit (Substitute for Return program).
• Substantial understatement (25% or more of gross income omitted) → 6 years.
• Fraudulent return filed with intent to evade tax → No time limit.

Once the period expires, the IRS generally cannot assess more tax, and you lose certain appeal or refund rights in some cases.

Why Does the IRS Request an Extension via Publication 1035?

During an audit or examination, the 3-year window can expire before the IRS finishes reviewing your return, especially for complex issues. Publication 1035 explains that extensions give both parties more time to:

• Gather and review additional documentation supporting your position.
• Complete the examination fairly.
• Pursue an administrative appeal if you disagree with findings.
• File or process a claim for refund or credit.
• Allow the IRS to make any necessary adjustments or reductions in tax.

Congress authorized these voluntary written agreements (consents) to avoid rushed decisions or premature Notices of Deficiency. The IRS requests only the time actually needed and will not ask for unnecessarily long extensions.

How to Extend the Assessment Period: Consent Forms?

Extensions require a signed written consent between you (the taxpayer) and the IRS. The IRS prepares the form, but you can negotiate terms.

Common forms listed in Publication 1035:

• Form 872 – Consent to Extend the Time to Assess Tax (most common for income taxes).
• Form 872-B – For miscellaneous excise taxes.
• Form SS-10 – For employment taxes.
• Form 872-A – Open-ended (indefinite) consent, ending 90 days after either party gives notice (used in suspense cases or appeals).

Above: Sample excerpts from official IRS Form 872 (Rev. January 2014), the most frequently used consent form. Note the clear language about your right to refuse or limit the extension.

You can request further extensions before the current one expires. The IRS must mail you Publication 1035 with any consent request.

Your Rights as a Taxpayer (Direct from Pub 1035)

When the IRS asks you to sign, you have three clear options:

1. Sign the unconditional consent – Gives the IRS full time to assess any issues. You retain all normal appeal rights.
2. Negotiate and limit the consent (restricted consent) – You can restrict it to specific issues, tax years, or a shorter time period. The IRS generally agrees if the restrictions are clear, practicable, and approved by IRS Counsel. Uncovered issues revert to the normal statute.
3. Refuse to sign – No penalty for refusing. The IRS must then decide based on available information (often issuing a Notice of Deficiency, giving you 90 days — or 150 days if outside the U.S. — to petition Tax Court).

Publication 1035 emphasizes: “Signing this consent will not deprive you of any appeal rights to which you would otherwise be entitled.” You can always add a statement acknowledging your rights under IRC § 6501(c)(4)(B).

Restricted Consents: When and How They Work?

Restricted (or “limited”) consents protect you by narrowing the scope. The IRS will prepare the language — you cannot create your own. Approval requires IRS Counsel review. This option is ideal when only a few issues remain unresolved.

What Happens If You Refuse the Extension?

• For most income taxes: The IRS may issue a Notice of Deficiency (90-day letter). You can then agree, pay, or petition U.S. Tax Court.
• For certain employment or excise taxes: The IRS may assess the tax directly; your recourse is to pay and file a refund claim.
• You can still pursue appeals or refunds within the remaining statute, but time pressure increases.

Refusing does not stop interest from accruing on any balance due.

Other Key Facts from IRS Publication 1035 and Related Guidance

• Interest continues to accrue until paid. Cash deposits can stop it in some cases.
• Jeopardy assessments are rare and not used solely because you refuse consent.
• Extensions do not apply the same way to estate taxes in all cases.
• Always keep copies of signed consents and related correspondence.

Frequently Asked Questions (FAQ) About IRS Publication 1035

Is Publication 1035 still current in 2026?
Yes. The September 2017 revision is the latest version listed on IRS.gov and actively referenced in 2025 audit and examination FAQs.

Do I have to agree to extend?
No. It is completely voluntary.

Can I limit the extension to certain issues only?
Yes — this is called a restricted consent and is encouraged when appropriate.

Where can I get help?
Contact the IRS employee who sent the request, call 1-800-829-1040, or visit IRS.gov. For appeals, see Publication 556.

Should I consult a tax professional?
Yes — especially before signing any consent. A CPA, enrolled agent, or tax attorney can review the specific circumstances.

Final Thoughts: Protect Your Rights with Knowledge

IRS Publication 1035 empowers taxpayers by clearly outlining the extension process, your options, and the balance between IRS needs and your protections. Whether you’re in the middle of an audit or simply preparing for potential IRS contact, understanding the tax assessment period helps you make informed decisions.

Action Steps:

1. Download and read Publication 1035 today.
2. Never sign a consent without fully understanding it (or consulting an advisor).
3. Keep detailed records of all IRS communications.

For the most accurate, up-to-date advice tailored to your situation, always refer directly to IRS.gov or consult a qualified tax professional. Tax laws and your specific facts can vary.

This article is for informational purposes only and is based on official IRS sources including Publication 1035 (Rev. 9-2017), IRS.gov/filing/time-irs-can-assess-tax (reviewed April 2025), and related audit guidance. It is not tax or legal advice.