There are a variety of different statutes of limitations that apply to a variety of different situations. Below is a list of these situations and the proper statute of limitations that will apply.
Statute of Limitations on Tax Returns
1. Assessment and collection of taxes on returns not filed on or before their proper due date – Statute of limitations expires three years after the return is properly filed with the IRS.
2. Assessment and collection of taxes on tax returns filed early – Statute of limitations expires three years from the original due date of the return.
3. Filing a fraudulent tax return with the IRS with intent to evade tax – Statute of limitations never expires.
4. Any willful attempt to evade income tax through various means – Statute of limitations never expires.
5. A taxpayer originally files a fraudulent return and later files a non-fraudulent amended return for that year – Statute of limitations never expires.
6. Failure of the taxpayer to file a tax return with the IRS – Statute of limitations never expires.
7. Fraudulent failure to file followed by filing of a non-fraudulent delinquent tax return – Statute of limitations expires three years from the date of filing the non-fraudulent delinquent tax return.
8. Filing of an amended tax return within 60 days of the expiration of the three year assessment period on the original return – Statute of limitations expires 60 days after the day on which the Secretary receives the amended return.
9. A dissolving corporation makes a request for prompt assessment using Form 4810 – The IRS has 18 months after written request to assess additional tax but this 18 month window cannot exceed the regular three year period for assessing tax.
10. Omission by the taxpayer from gross income of a property that should have been included of an amount in excess of 25% of the gross income stated on the tax return – State of limitations expires six years after the return is filed.
11. Purported trust of partnership files a return in good faith as a trust or partnership and is later determined to be a corporation – Statute of limitations runs three years from the date of filing of the good faith trust or partnership return.
12. Deficiency that is attributable to a carry back by the taxpayer of an NOL or capital loss to an earlier year – Statute of limitations expires for the year to which the loss is carried when it expires for the year in which the loss was generated.
13. A credit is freed up by the carry back of an NOL and is carried to an even earlier year – Statute of limitations expires for the year to which the credit is carried when the statute expires for the year in which the NOL is generated.
14. An unsigned tax return is filed by the taxpayer – Statute of limitations does not start until the return is signed and properly filed.
There is many more statute of limitations that the IRS has for other types of issues; these however are the most common that the IRS deals with on a regular basis.