The IRS Audit Blog

Posts Tagged ‘statute of limitations’

Question: Can anyone tell me the correct Title and Section of the US Code?

Here is an excerpt from an article from Apple.com on the statute of limitations for the IRS’ collection of back taxes:

The IRS has 10 years to collect outstanding tax liabilities. This is measured from the day a tax liability has been finalized. A tax liability can be finalized in a number of ways. It could be a balance due on a tax return, an assessment from an audit, or a proposed assessment that has become final. From that day, the IRS has ten years to collect the full amount, plus any penalties and interest. If the IRS doesn’t collect the full amount in the 10-year period, then the remaining balance on the account disappears forever. The statute of limitations on collecting the tax has expired.

What is the statute number?

Answer: 26 USC 6501(a) gives three years from the date a return was filed for the IRS to collect a balance due. However, once the IRS actually makes an assessment of taxes (generally about 6 to 8 months after the return is filed), 26 USC 6502(a) gives ten years from the date of the assessment for the IRS to collect the taxes.

For more specific information on your tax problem, contact a tax attorney in your state. For a referral, contact your local or state bar association.

John Bullis: What is the ‘statute of limitations?’

A part of the tax law is the “statute of limitations.” That is the limit of how long a tax return is open for audit by IRS or for amendment by the taxpayer.

Audit Preparation – Statute of Limitations for Audits

Question: Is a California Guaranteed Student Loan subject to a Statute of Limitations?

I’m being harassed for a student loan that is from 1987. The IRS has never attached my tax returns or garnished my wages. Is this debt legitimate?

Answer: All GSLs (guaranteed student loans) are arms of the FFELP (federally funded) and thus have no statute of limitations.

Section 484A(a) of the Higher Education Action provides that no statute of limitations bars enforcement action to collect Federal student loans, including collection by offset, lawsuit, or enforcement on student loan judgments. 20 U.S.C. § 1091a(a). State law that would otherwise limit these actions is superseded by Federal law and cannot bar collection action.

Bill would help youth identity theft victims

(AP:CARSON CITY, Nev.) By the time Carlos Hernandez turned 18, little did he know his credit was trashed. Since the age of 9, he had obtained a mortgage, bought cars, obtained credit cards _ and racked up loads debt. He had a criminal record, too _ not his own _ which kept him out of the Navy.

Do IRS Problems go on forever?

Question: Common Law Marriage In Texas & Taxes — Help!!?

I live in TX which recognizes common law marriage. I was common law married to my husband (lets say husband #1) for 5 years when I met some other guy who I unfortunately had a fling with…

The new guy told me my marriage wouldnt matter if husband #1 didnt know because of a 2 year statute of limitations, and he convinced me to marry HIM “formally”. Now, #2 didnt work out. We only “married” for 2 months and split up (fling). Now I am back living with #1, and #2 is filing for a formal divorce. And from a legal standpoint I beleive Im still common law married to #1 (with whom i currently reside) and I dont know what to do…

and just for the record, my common law marriage to #1 can be proved from witnesses, 5 years or IRS tax records (as married), joint accounts, etc.

my total time seperated from #1 was ONLY one year, which means the statute of limitations didnt lapse either. Now, should i file my taxes this year as married to #1? What about this divorce from #2?

Help!!!

Answer: Just get an annulment and get it because you were told that #1 is your legal spouse.Ignorance is not excepted by the law.Get an annulment NOW.

Are You Eligible For Some of The $37.5 Million in Unclaimed Taxes?

People who did not file in 2007 could get money back.

Statute of Limitations

Question: How far back does the IRS audit your tax returns?

Will you ever get an audit for a tax return 5 years or more ago?

Answer: The IRS generally does not audit a return filed more than 2 years ago. If they need to examine a return, they need to have the case closed within 3 years of filing.

If there is a case of a non-filed return, the statute of limitations does not start until the taxpayer files a return, so the time is infinite.

There is no statute of limitations on fraud. They can go back to 1931 if there is evidence of such an act.

Even if they could go back 75 years, though, it’s doubtful they would. The IRS wouldn’t be able to find the records, but they have them.

In reality, it’s difficult for the IRS to access its records more than 5 years old right now.

Enrolled Agent

U.S. TAX REVIEW AND OUTLOOK

The year 2009 is memorable for having given rise to a number of potentially important proposed legislative changes to the Internal Revenue Code (the “Code”), but few of those proposals were enacted.

IRS shoud first audit those who make the tax laws

Keep important records and cut the clutter

As you gather the papers necessary for this year’s tax return preparation, you may be wondering what records you need to keep and how long you need to keep them.

IRS Collection Statute Expiration Date (CSED)