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Form 870 Indianapolis Indiana: What You Should Know
The tax agency has not done any more work to tax a settlement or payment agreement. The taxpayer can then file Form 870 with the Tax Appeals Division and the Tax Court and receive a tax assessment refund. The tax agency's assessment has not been corrected. The settlement agreement is therefore not applicable to any tax or filing obligation. The Tax Court and Tax Appeals Division have entered into a settlement agreement and this settlement agreement, when accepted, also will be considered a tax assessment.  Form 870 is valid for one year for tax and filing cases submitted to the Tax Court or the Tax Appeals Division. It has no expiration date. The Form 870-AD applies to cases submitted to the Appeals Division. The case number, name of the taxpayer, and the settlement agreement number will be on that form. Form 870-AD uses an abbreviated form number, “IT-40EZ”, that replaces the “1” in the “800” prefix for an extension of time to appeal. Form 870-AD has no expiration date. The extension of time in the Appeals Division allows taxpayers a year to appeal a Tax Court assessment for non-docketed cases and one year to appeal an assessment for tax case cases when the assessment is not corrected without an appeal. Form 870 (Rev. 10) — Information Sheet — Form 870 (Rev. 1) — Settlement Agreement Form 870 is used for tax and filing cases where a voluntary agreement has been made with the IRS and both parties agree to file a Form 870 before the IRS processes and sends a “notice” to the taxpayer in lieu of the assessment (form W-9, Notice of Federal Tax Lien). Form 870 is valid for two years and for any pending case where one of the parties has been granted an extension. In such a case, you can file a waiver of the assessment, or use Form 870-AD. Form 870-AD has an abbreviated form number, “IT-40EZ”, that replaces the “1” in the “800” prefix for an extension of time to appeal. Form 870-AD does not need to be executed by all tax subjects or taxpayers when applying or filing tax returns.
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