ASSESSMENT,
COLLECTION, REFUND AND AMENDMENT STATUTE OF LIMITATIONS
ASSESSMENTS
The
IRS generally has 3 years from the time that an
original return is filed to assess additional taxes,
late penalties and interest.
However, if there is a substantial
understatement of gross income reported on a return
defined as an understatement in excess of 25% of the
amount of gross income stated on the return or
deductions claimed the time
for assessment is extended to 6 years.
COLLECTIONS
The
IRS generally has 10 years from the date of assessment
to collect back taxes, late penalties and interest. However, the
Statute of Limitations for collection is extended:
-
While
an offer in compromise is pending.
-
While
bankruptcy proceedings are pending.
-
While
a taxpayer assistance order is in process.
-
While
absent from the country for more than 6 months.
-
While
a collection due process appeal is pending.
-
While
some court issue are litigated, and
-
By
taxpayer agreement.
The
various Statutes of Limitations herein referred to
relate to IRS tax provisions, only. State rules vary
and are under the jurisdictional authority of the
particular state. If you have questions
regarding the statute of limitations that apply to a specific state our tax
research platform provides the links to all State
Departments of Revenue.
AMENDING
RETURNS
The
statutes of limitation for assessment does not begin
to toll time for 150 days after a
Notice of Tax Deficiency is issued. If the
taxpayer signs a waiver the Statute of limitations
begins to toll time in 60 days.
There
is no statute of limitations for amending substitute
filed returns to reduce back taxes, late penalties
and interest. However, you will generally not receive refunds or
offsets to reduce the back taxes, late penalties or
interest of another year if the amended
return is filed the later of 3 years from the due date
of the return or two years from the time the tax
was paid.
PRIVACY
AND SECURITY POLICIES
Our
organizational policies guarantee that
"only" contact initiated by you and required
to complete the services we have been commissioned to
perform or to provide guidance sought will occur at
any time, now or in the future.
There
is no statute that limits either the collection or
assessment of back taxes, late penalties and interest
when a
taxpayer files a fraudulent return to
deliberately evade taxes or when no return was filed.
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