What is Statute of limitations (tax assessment)?
In short
The statute of limitations limits how long the Internal Revenue Service has to assess additional tax: generally three years from the later of the return's due date or the date it was filed.
Key takeaways
- It is six years if gross income is understated by more than 25%.
- There is no limit for a fraudulent return or when no return is filed.
- Refund claims generally must be filed within three years of filing or two years of paying the tax, whichever is later.
Where it's tested
REG: Internal Revenue Service (IRS) Procedures & Appeals — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A taxpayer filed a return omitting gross income equal to 30% of the gross income reported. How long does the IRS have to assess additional tax?