Instruction for Consent to Extend Time to Assess Civil Penalties

Instructions for Completing the Form 872 and the Consent to Extend the Time to Assess ...

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Instructions for Completing the Form
872 and the Consent to Extend the Time
to Assess Civil Penalties Provided by 31 U.S.C. 5321
A Consent to Extend the Time to Assess Tax (Form 872) and a Consent to Extend the Time to
Assess Civil Penalties Provided by 31 U.S.C. 5321 (the FBAR consent form) must be submitted with
your voluntary disclosure by the deadline specified in the letter from IRS Criminal Investigation
acknowledging receipt of a timely voluntary disclosure.
General instructions for completing the Form 872 and the FBAR consent form are outlined below.
No modifications to any of the terms of the consents may be made by the taxpayer. The I.R.S. will
not grant any request to restrict the consents to specific issues.
If you have questions regarding the preparation of these forms, please call the OVDP Hotline at 267941-0020.

Instructions for Form 872
TIN:

Enter the taxpayer identification number of the individual or entity making
the voluntary disclosure. The taxpayer identification number for
individuals is typically the social security number of the individual. If a joint
voluntary disclosure is made by taxpayers filing a joint return, enter both
social security numbers.

Names:

Enter the name of the taxpayer making the voluntary disclosure as it
appears on the tax return as filed unless, since filing, there has been a
name change. In that case, the Form 872 should be prepared using both
names. Example: “Mary Doe, formerly Mary Brown.” If a joint voluntary
disclosure is made by taxpayers who filed joint returns, enter the names
of both the husband and wife. Example: “John Doe and Mary Doe.”

Address:

Enter the taxpayer’s current address, rather than the address shown on
the return.

Tax Periods:

Enter the ending date (usually December 31, 20XX) of each of the eight
years in the voluntary disclosure period.

Expiration Date:

Enter December 31 of the calendar year that falls at least 2 years after
the form 872 is submitted. For example, for an 872 submitted on
December 10, 2012, the expiration date would be December 31, 2014,
and for an 872 submitted on January 10, 2013, the expiration date would
be December 31, 2015.

Signatures:

Individuals:

Taxpayer making the voluntary disclosure
should sign the Form 872. If a joint voluntary
disclosure was made by taxpayers who filed
joint returns, both the husband and wife must
sign the Form 872.

Minors:

The Form 872 should be executed by the
parent, as natural guardian having custody of a
child, or any legal guardian of the person
appointed under state law if the taxpayer is a
minor at the time the Form 872 is signed. If there
is a guardian of the property of the minor under
state law, that guardian should sign the Form
872.

Decedents:

For returns of a taxpayer who is now deceased,
the Form 872 for a Form 1040 should be signed
by the executor, administrator, or personal
representative of the decedent’s estate. There is
no provision in the law for entering into an
agreement to extend the statute of limitations for
an estate tax return.

Corporations:

The Form 872 should be signed with the
corporate name, followed by the signature and
title of such officers of the corporation as are
empowered to sign for the corporation under the
laws of the state in which the corporation is
located. A Form 872 may be signed by the
president, vice-president, treasurer, assistanttreasurer, chief accounting officer, or any other
officer duly authorized to act in this capacity,
whether or not they signed the return. The title of
the signing officer must be shown on the Form
872.

Trusts:

The signature line should show the name of the
trust, followed by the name and designated title
of the person or persons authorized by the trust
instrument to sign.
Example: Name: “John Doe Trust”
Signature: “John Doe Trust By Richard Roe,
Trustee”
A Form 872 covering a return of a trust should
be accompanied by Form 56, Notice Concerning
Fiduciary Relationship, and a copy of the trust
instrument.

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http://www.irs.gov/Individuals/International-Taxpayers/Instructions-for-Completing-the-F... 1/15/2013

Instructions for Completing the Form 872 and the Consent to Extend the Time to Assess ...

Representatives:

allows that individual (the authorized representative) to extend the statute
of limitations, may execute a Form 872. The power of attorney must be
valid at the time the Form 872 is executed by the authorized
representative.

Date:

Enter the date the Form 872 is signed. Two copies of the Form 872 with
original signatures should be submitted.

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Instructions for FBAR Consent
Name, Taxpayer
Identification Number
and Address of the
U.S. Person:

Print the name, taxpayer identification number and address of the United
States person on the lines on the FBAR consent form for the name,
taxpayer identification number and address of the United States person.
The taxpayer identification number for individuals is typically the Social
Security number of the individual.

Years Covered by
Consent:

Include in paragraph 1 all calendar years ending in the voluntary
disclosure period.

Expiration Date:

Enter December 31 of the calendar year that falls at least 2 years after
the consent is submitted. For example, for a consent submitted on
December 30, 2012, the expiration date would be December 31, 2014,
and for a consent submitted on January 2, 2013, the expiration date
would be December 31, 2015.

Signatures:

Individuals:

The United States person must sign and date
two copies of the FBAR consent form, in the
space provided for the “Signature of the United
States Person.” Both copies of the FBAR
consent form must have the original signature of
the United States person.

Spouses:

If a foreign financial account is owned jointly by
a husband and wife, separate FBAR consent
forms must be signed by each person, even if
any of the tax returns for the years in question
were jointly signed.

Minors:

The FBAR consent form should be executed by
the parent, as natural guardian having custody
of a child, or any legal guardian of the person
appointed under state law if the taxpayer is a
minor at the time the consent is signed. If there
is a guardian of the property of the minor under
state law, that guardian should sign the FBAR
consent form.

Powers of Attorney:

An individual having a valid power of attorney
from the United States person, which allows that
individual (the authorized representative) to
extend the statute of limitations, may execute
the FBAR consent form. The power of attorney
must be valid at the time the FBAR consent form
is executed by the authorized representative.

Decedents:

If the United States person is deceased, the
FBAR consent form must be signed by the
executor or administrator of the decedent’s
estate.

Corporations,
Partnerships, Estates
and Trusts:

For corporations, the FBAR consent form must
be signed and dated by either the president,
vice-president, or treasurer of the corporation.
For partnerships, the FBAR consent form must
be signed by a managing partner.
For estates, the FBAR consent form must be
signed by the executor or administrator of the
estate.
For trusts, the FBAR consent form must be
signed by the trustee.
Page Last Reviewed or Updated: 2012-08-22

http://www.irs.gov/Individuals/International-Taxpayers/Instructions-for-Completing-the-F... 1/15/2013