The IRS Audit Blog

Posts Tagged ‘statute of limitations’

After taxes: Save or shred it?

Taxpayers who labored to meet the April 15 deadline face an even more daunting endeavor: figuring out which documents to save and which can be assigned to the shredder.

IRS Tax Debt Relief | Offer in Compromise

Question: Filing late taxes and getting a refund?

Ok so I started working (not under the table ) when I was 20… In 2005. I will be absolutely honest I didn’t know I had to file taxes because my parents claimed me as a dependant. About 2007 I knew kinda but was scared to ask. I finally bit the bullet and called the IRS. To my surprise, they were very very nice and weren’t shocked I hadn’t filed. So on October 6th I filed 2005, 2006, and 2007. The statute of limitations is I can’t get a refund for 2005. That’s ok I was a dependent and only got like 130 bucks. 06 and 07 I’m getting 1’600 back. My question is.. Does it take longer to get your refund when you file late? I am recently unemployed and need the money soon. Not enough to get an advance on it though. Personal experience with late refunds is great! Thanks!
Yeah I did direct deposit, and there is no penalty if you are owed taxes. That’s what the IRS people said.
I filed 2008

Answer: Any time you have to mail a return it takes longer. It can easily take 6 – 8 weeks. If you have a refund coming then there is no penalty for late payments but the IRS can, if they want, hit you with a late filing penalty. Most likely they wont. I hope you filed state if required also.

FBAR filing provisions require immediate attention

Taxpayers face a June 30 deadline to file a Report of Foreign Bank and Financial Account (FBAR) for 2009. The Internal Revenue Service (IRS) is also allowing some taxpayers to make delinquent FBAR filings by that date without facing penalties.

does the irs have a time limit to collect unpaid taxes

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.

Meet The New, Scarier Breed Of Debt Collector

The last decade or so has given rise to a new version of an old phenomenon: the bottom feeding debt buyer.

Tampa tax attorney explains IRS does not have forever to collect