IRS Form 921 "Consent to Extend the Time to Assess Income Tax"

What Is Form 921?

IRS Form 921, Consent to Extend the Time to Assess Income Tax, is a legal document filed by real estate developers to extend the period for tax assessment and request the use of the estimated costs of common modifications and improvements on a project-by-project basis. An amended period of assessment ends one year after the date an income tax return is submitted for the tax year in which the real estate project is expected to be finished. Taxpayers can be granted an extension of up to 45 days to use an alternative cost method in accordance with Revenue Procedure 92-29.

This form was issued by the Internal Revenue Service (IRS). The latest version of the form was released in July 2001 with all previous editions obsolete. A Form 921 fillable version is available for download through the link below.

Provide the following information in the IRS 921 Form:

  1. Add your full name or name of your business, physical address, and taxpayer identification number;
  2. Indicate when the taxable years have ended and the report year when the project is expected to be completed;
  3. Describe the consent agreement that covers the real estate development. An annual statement, including a full description of the project, is required for each development for which the taxpayer wants to use the alternative cost method;
  4. Sign the form. If the consent covers years where you submitted a joint return, obtain the signature of your spouse. It is also possible to sign the form using a power of attorney.

The rest of the document must be filled out by the IRS - state the name and title of the unit executive and obtain the signature of the division official who is authorized to sign the consent.

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Download IRS Form 921 "Consent to Extend the Time to Assess Income Tax"

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In reply refer to:
Department of the Treasury-Internal Revenue Service
921
Consent to Extend the Time to Assess Income Tax
Form
Taxpayer Identification
(Rev. July 2001)
Number(s)
Estimated Future Common Expense Allowance for Real Estate Sales Under Contract
For income tax purposes, the Commissioner of Internal Revenue has tentatively allowed
(Name(s))
taxpayer(s) of
(Number, Street, City or Town, State, ZIP Code)
to consider the allocable share of the estimated cost of future common improvements as part of the cost or other basis of
certain real estate sold or otherwise disposed of under contract. As a provision of this tentative allowance, the above
taxpayer(s) and the Commissioner of Internal Revenue agree that:
The amount of federal income tax due on any return(s) filed by or for the taxpayer(s) for the tax year(s) ended
may be
assessed at any time before and up to one year after a return is filed for tax year ended
.
(Tax Year of Expected Project Completion)
Real Estate Project covered by this consent agreement:
A return filed before the expected project completion date shall be considered filed on the day prescribed above without
regard to extensions. This consent agreement to extend the time to assess tax is limited to the assessment of
deficiencies attributable to the use of the alternative cost method with respect to the real estate project described above.
If a notice of tax deficiency is sent to the taxpayer(s) by certified or registered mail on or before the date above, the time
to assess income tax under this consent agreement is further extended by the assessment suspension period, plus 60
days.
THIS CONSENT AGREEMENT DOES NOT DEPRIVE THE TAXPAYER(S) OF ANY
APPEAL RIGHTS TO WHICH THEY WOULD OTHERWISE BE ENTITLED.
YOUR SIGNATURE HERE
(Date signed)
SPOUSE'S SIGNATURE HERE
(Date signed)
TAXPAYER'S REPRESENTATIVE
SIGN HERE
(Date signed)
CORPORATE
NAME
CORPORATE
(Name/Title/Taxpayer Identification Number)
(Date signed)
OFFICER(S)
SIGN HERE
(Date signed)
(Name/Title/Taxpayer Identification Number)
INTERNAL REVENUE SERVICE SIGNATURE AND TITLE
(Division Executive Name - See Instructions)
(Division Executive Title - See Instructions)
BY
(Authorized Official Signature and Title - See Instructions)
(Date signed)
921
Catalog Number 16974D
Form
(Rev. 07 -2001)
(See back of form for signature instructions)
www.irs.gov
In reply refer to:
Department of the Treasury-Internal Revenue Service
921
Consent to Extend the Time to Assess Income Tax
Form
Taxpayer Identification
(Rev. July 2001)
Number(s)
Estimated Future Common Expense Allowance for Real Estate Sales Under Contract
For income tax purposes, the Commissioner of Internal Revenue has tentatively allowed
(Name(s))
taxpayer(s) of
(Number, Street, City or Town, State, ZIP Code)
to consider the allocable share of the estimated cost of future common improvements as part of the cost or other basis of
certain real estate sold or otherwise disposed of under contract. As a provision of this tentative allowance, the above
taxpayer(s) and the Commissioner of Internal Revenue agree that:
The amount of federal income tax due on any return(s) filed by or for the taxpayer(s) for the tax year(s) ended
may be
assessed at any time before and up to one year after a return is filed for tax year ended
.
(Tax Year of Expected Project Completion)
Real Estate Project covered by this consent agreement:
A return filed before the expected project completion date shall be considered filed on the day prescribed above without
regard to extensions. This consent agreement to extend the time to assess tax is limited to the assessment of
deficiencies attributable to the use of the alternative cost method with respect to the real estate project described above.
If a notice of tax deficiency is sent to the taxpayer(s) by certified or registered mail on or before the date above, the time
to assess income tax under this consent agreement is further extended by the assessment suspension period, plus 60
days.
THIS CONSENT AGREEMENT DOES NOT DEPRIVE THE TAXPAYER(S) OF ANY
APPEAL RIGHTS TO WHICH THEY WOULD OTHERWISE BE ENTITLED.
YOUR SIGNATURE HERE
(Date signed)
SPOUSE'S SIGNATURE HERE
(Date signed)
TAXPAYER'S REPRESENTATIVE
SIGN HERE
(Date signed)
CORPORATE
NAME
CORPORATE
(Name/Title/Taxpayer Identification Number)
(Date signed)
OFFICER(S)
SIGN HERE
(Date signed)
(Name/Title/Taxpayer Identification Number)
INTERNAL REVENUE SERVICE SIGNATURE AND TITLE
(Division Executive Name - See Instructions)
(Division Executive Title - See Instructions)
BY
(Authorized Official Signature and Title - See Instructions)
(Date signed)
921
Catalog Number 16974D
Form
(Rev. 07 -2001)
(See back of form for signature instructions)
www.irs.gov
Instructions for Taxpayer(s)
Please sign and return the original and copy of Form 921, Consent to Extend the Time to Assess Income Tax, to apply
for an extension in accordance with Revenue Procedure 92-29 and its successors. Your signature(s) must match the
name(s) as it appears on this form.
If this consent form includes tax years where a joint return was filed, the signature of both husband and wife is required.
One spouse may sign as agent for the other, if acting under an authorized power of attorney.
If you're an attorney or agent for the taxpayer(s), you may sign the consent form provided the action is specifically
authorized by a power of attorney. If you haven't filed a power of attorney, please include it with this form.
If you're acting as a fiduciary (executor, administrator, trustee, etc.) you must include a completed Form 56, Notice
Concerning Fiduciary Relationship, if you haven't already filed one.
If the taxpayer named on this consent form is a corporation, the officer(s) duly authorized to sign on behalf of the entity
must sign the consent. Include the name of the corporation and signature/ title of the corporate officer(s).
If you're an entity subject to the unified audit and litigation procedures for TEFRA (Tax Equity and Fiscal
Responsibility Act) partnerships, you must use Form 921-P. If you're an entity not subject to the TEFRA
requirements (namely S-Corporations, partnerships, limited liability companies, trusts, syndicates, pools, etc.), you must
use Form 921-I.
Instructions for Internal Revenue Service Employees
The signature and title line must be signed and dated by the appropriate authorized official within your division.
SMALL BUSINESS/SELF-EMPLOYED DIVISION
Enter the name and title of your business unit executive (e.g., Area Director; Director, Compliance Policy; or Director,
Compliance Services). Secure signature of authorized division official.
WAGE AND INVESTMENT DIVISION
Enter the name and title of your business unit executive (e.g., Area Director or Director, Field Compliance Services).
Secure signature of authorized division official.
LARGE AND MID-SIZE BUSINESS ENTITIES DIVISION
Enter the name and title of your business unit executive (e.g., Director, Field Compliance). Secure signature of
authorized division official.
TAX EXEMPT AND GOVERNMENT ENTITIES DIVISION
Enter the name and title of your business unit executive (e.g., Director, Exempt Organizations; Director, Employee
Plans; Director, Federal, State and Local Governments; Director, Indian Tribal Governments; or Director, Tax Exempt
Bonds). Secure signature of authorized division official.
APPEALS DIVISION
Enter the name and title of your business unit executive (e.g., Director, Appeals Operating Unit). Secure signature of
authorized division official.
921 (
Form
Rev. 07-2001)
Catalog Number 16974D
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