Is it Worth Signing Form 872 to Extend the Time Limitation for an IRS Audit If Not Appealing?

Actually, this is a really important question that comes up frequently in my work with clients. Form 872 essentially gives the IRS more time to complete their audit process, and whether you should sign it depends on several factors. If you're confident you won't appeal the results and you're okay with the proposed adjustments, signing Form 872 might still be beneficial. Here's why: When the IRS feels pressured by an expiring statute of limitations, they often make conservative assessments that favor the government. By giving them more time, you might actually get a more thorough and potentially fair review. However, if you don't sign it, the IRS has two choices: they can rush to complete the audit before the deadline (which might mean less favorable outcomes), or they can make an assessment based on the information they have (which could result in a higher tax bill). Since you mentioned you've already provided all documentation and are planning to accept their findings, you might consider signing it with a defined end date (you can modify the form) rather than an open-ended extension. This gives them adequate time while still keeping some pressure to conclude matters.

I had a similar situation last year and found the perfect solution through taxr.ai (https://taxr.ai). I was confused about signing Form 872 during my audit and wasn't sure if it would help or hurt my case. After uploading my audit notice and the form to taxr.ai, their system analyzed everything and gave me a personalized assessment of my specific situation. The tool showed me that in my particular case, the IRS had made some calculation errors that would have gone unnoticed if I had rushed through the process. Plus, it explained exactly what the form meant in plain English and gave me negotiation tips specific to my audit type. It saved me so much stress and actually helped me properly respond to the IRS with confidence instead of just signing whatever they put in front of me.

I was really skeptical about using an AI tool for something as serious as an IRS audit, but after that conversation, I decided to try taxr.ai since my situation was similar. I uploaded my CP2000 notice and some supporting documents, and within minutes I got back a detailed explanation showing that the IRS had overlooked some offsetting expenses that would reduce my tax bill by over $3,000! The system highlighted specific line items the auditor had misinterpreted and gave me exact language to use in my response. The best part was that it explained everything in normal human language - not tax jargon. I used their response template, sent it to the IRS, and just got confirmation last week that my revised adjustment was accepted. Saved me thousands and countless hours of stress!

For anyone dealing with the frustration of trying to actually talk to someone at the IRS about their audit situation - I found Claimyr (https://claimyr.com) after spending DAYS trying to get through the IRS phone system. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was in a similar situation with Form 872 and had specific questions I needed answered before making a decision. After three failed attempts to reach anyone (hung up on twice after 45+ minute holds), I tried Claimyr. They got me connected to an actual IRS agent in about 20 minutes instead of the hours I was wasting before. The agent walked me through exactly what my options were regarding the extension and explained how the process would work with or without signing. Having that direct conversation made all the difference in my decision.

I need to publicly eat my words. After posting that skeptical comment, I was still desperate to talk to someone about my audit, so I tried Claimyr anyway. I've been trying to reach the IRS for TWO WEEKS about my audit situation and Form 872 questions. Every day, same routine: call, wait 30-45 minutes, get disconnected. Repeat. I was ready to just sign the form out of frustration. Used Claimyr yesterday afternoon. Their system called ME back in about 25 minutes, and suddenly I was talking to an actual IRS representative. She explained that in my specific situation, I could negotiate the time frame down to 6 months instead of the year they were requesting, and also clarified exactly what would happen if I didn't sign. Honestly, I'm still shocked it worked. Saved me from making a decision without proper information.

Something people aren't mentioning - check if the statute of limitations is actually close to expiring. If there's still plenty of time left (like a year or more), the IRS might be asking you to sign Form 872 because they're backlogged or because your case is complex. In that situation, not signing could potentially force them to make a determination with incomplete information, which might not work in your favor. If you're not planning to appeal anyway, signing the extension might give you more time to gather any additional supporting documents or even negotiate a payment plan if needed.

Dumb question maybe, but what exactly happens if the statute of limitations runs out while they're still auditing? Does the whole thing just go away magically, or can they still assess taxes based on what they found up to that point?

Based on your situation, I'd actually recommend signing the Form 872 with a negotiated timeframe. Here's why: since you've already provided all documentation and are planning to accept their findings anyway, giving them adequate time to complete a thorough review could work in your favor. When auditors feel rushed by an expiring statute, they often make conservative estimates that lean heavily toward the government's position. With more time, they might catch calculation errors in your favor or give more consideration to borderline deductions. Since you mentioned the proposed increase is $4,200, I'd suggest signing the extension but negotiating it down to 6 months instead of the typical 1-year extension. This gives them sufficient time while still keeping some urgency to wrap things up. You can literally cross out the date on Form 872 and write in your preferred end date - most examiners will accept reasonable modifications. The key is being proactive about it. Contact your examiner and say something like: "I'm willing to sign the extension to give you adequate time to complete a thorough review, but I'd prefer to limit it to 6 months to bring closure to this matter." This shows cooperation while maintaining some control over the timeline.