What is the Statute of Limitations?
The Internal Revenue Code limits the time in which the government may assess tax. There are two civil statutes of limitations. The first is the period during which the IRS can assess an additional tax liability (including penalties and interest). The second is the period during which the IRS can collect a tax that has been assessed. The criminal statute of limitations is the period during which the IRS can criminally prosecute. Generally, as to tax crimes, the criminal statute of limitations is six years. (Section 6531)
The application of the statute of limitations can be very confusing and individual facts may determine how the statute of limitations is computed. Also, certain actions suspend the statute of limitations.
Continue Reading Statute of Limitations in Tax Cases – The Basics