Federal Tax Procedures: Statue of Limitations

Question 1

A taxpayer may file a claim for a refund

Answer 1

Later of three years after filing or two years after payment of tax

If no return was filed, the claim must be made within two years of payment of the tax

Question 2

The IRS

Answer 2

10 years to collect after a tax has been assessed

Collection may be by levy or court proceedings

The taxpayer and the IRS can agree to extend the period for collection

Question 3

There is an unlimited statute of limitations

Answer 3

For Fraud and Failure to file a tax return

Question 4

Different IRS refund forms

Answer 4

Form 1139 is a quick refund for carryback and claim of right (corporation).

Form 1045 is a quick refund for carryback and claim of right (individual).

Form 843 is for refunds of non-income taxes.

Form 1040X is A claim for refund of erroneously paid income taxes filed by an individual before the statute of limitations expires

Question 5

What has a 6 year statue of limitations

Answer 5

1) A 50% nonfraudulent omission from gross income
2) the taxpayer omits from gross income (total receipts, without reduction for cost) an amount in excess of 25% of the amount of gross income stated in the return