irs collection -statute of limitations
MAGTHIS
limitations for collection on delinquent IRS 1040 tax return 1992 for
which no lein or action was recorded?
Phil Marti
I'm not sure whether you're asking about the general law or a specific case.
The general rule is 10 years from the date of assessment (IRC section 6502).
That can be extended by operation of law (IRC section 6503) or judgment.
To get the details on a specific account for which no public documents were
filed, the taxpayer would have to contact the IRS if he doesn't have the
original assessment notice in his files.
--
Phil Marti
Clarksburg, MD
Shyster1040
taxes on its website, www.irs.gov
Aside from that, it really depends on the facts of the particular case.
As a general matter, the IRS can proceed to collect by levy or proceeding
in court if such collection is begun within 10 years of the assessment of
the tax; and where such levy or action is begun within that time period,
the statute of limitations is tolled until such time as the liability for
the tax (or a judgment arising from such liability) is satisfied or
becomes unenforceable. Code Section 6502.
The statute of limitations on collection is also tolled, with respect to
any deficiency (i.e., the excess of the tax due over the sum of any amount
shown as tax on the return, plus any amounts previously assessed as a
deficiency, less any rebates), upon issuance by the IRS of a notice of
deficiency with respect to such deficiency, for the period during which
the IRS is prohibited from making an assessment of, or collecting, such
deficiency (i.e., generally 90 days, or until a Tax Court decision becomes
final if a petition on the notice is filed with the Tax Court), and for 60
days thereafter. Section 6503.
Since the trigger for starting the SOL on collection is, in general, the
date of assessment, that SOL on assessment is also important. In general,
the IRS must assess a tax within 3 years of the filing of the return
showing such tax (which is the later of the last day on which the return
could have been timely filed (i.e., generally April 15th of the succeeding
year) or the date it's actually filed.
Where either (a) no return is filed, or (b) the return that was filed was
a false or fraudulent return with intent to evade tax, the tax may be
assessed at any time. In addition, a proceeding in court for collection
of the tax without assessment may also be started at any time.
A later-filed return will start the statute of limitations on assessment,
unless the original return was fraudulent, in which case a subsequent
amended return (even if the amended return is truthful). Section 6501.
Again, these are just general answers; I can't get any more specific
without more facts. The IRS publications should give you more
information.
Phil Marti
> The statute of limitations on collection is also tolled, with respect to
> any deficiency (i.e., the excess of the tax due over the sum of any amount
> shown as tax on the return, plus any amounts previously assessed as a
> deficiency, less any rebates), upon issuance by the IRS of a notice of
> deficiency with respect to such deficiency, for the period during which
> the IRS is prohibited from making an assessment of, or collecting, such
> deficiency (i.e., generally 90 days, or until a Tax Court decision becomes
> final if a petition on the notice is filed with the Tax Court), and for 60
> days thereafter. Section 6503.
This confuses things, as the Code likes to do. There is no collection
statute until there's an assessment, and there's no assessment while this
period is running, so discussion of a collection statute on the deficiency
is moot. Once the deficiency is assessed, it gets its own 10 year statute.
Example:
Original return balance due $1,000 assessed 6/15/2005.
Deficiency assessment after audit $1,000 assessed 6/15/2007
If none of this has been paid, there are two collection statutes running,
one that expires 6/15/2015, and one that expires 6/15/2017. Between those
two dates IRS could pursue the deficiency, but not the original assessment.
Shyster1040
by "Phil Marti" <prm2...@verizon.net> Oct 22, 2005 at 10:09 PM
"Shyster1040" <Shyst...@nospamhotmail.com> wrote:
Example:
I'm sorry if you're confused. Since the question asked about collections,
I started there and worked my way back, partly for the reason stated
below.
As an aside, there does not appear, strictly speaking, to be a need to
have an assessment before the IRS can proceed to collect by filing suit in
court - so long as the statute of limitations on assessment has not
expired, the IRS may proceed to collection by commencing a proceeding in
court (don't have my Code handy, but I believe that's provided for in the
same section that deals with the SOL on assessment).
Paul Thomas, CPA
"MAGTHIS" <refu...@NOSPAM.COM> wrote
> Where can I find documentation to confirm & support the statute of
> limitations for collection on delinquent IRS 1040 tax return 1992 for
> which no lein or action was recorded?
What you may be looking for is in several places.
No statute when a return has not been filed - Section 6501
Generally they have three years after the return is filed to assess the tax,
longer if there is an amended filing. For the most part, the tax is
assessed pretty quickly as returns are processed throughout tax season and
into the summer.
Collection period (ten years after assessment) - Section 6502
If the return was not filed, the assessment and ten year window hasn't
begun.
If the return was filed late (you used the term "delinquent"), after the
late return gets processed and the tax assessed, the ten year collection
window begins to run.
If the return was filed on time, I would think that the collection period
has expired by now.
The definitive answer can be found by asking the IRS.
--
Paul Thomas, CPA
paultho...@bellsouth.net
MAGTHIS
IRS disallowed EIC credit assessed additional tax 7/29/1996 This took
3+yrs!
Contested this matter IRS reverses decision allows EIC abates additional
taxes 10/13/2003 This took another 7+yrs!
Can they continue to demand penalties/interest
along with $200 unpaid taxes when original assesment date was 6/7/1993?
Paul Thomas
"MAGTHIS" <refu...@NOSPAM.COM> wrote
> Return was filed 4/15/1993 sent partial payment
> IRS disallowed EIC credit assessed additional
> tax 7/29/1996 This took 3+yrs!
Some times it does.
> Contested this matter IRS reverses decision allows EIC
> abates additional taxes 10/13/2003 This took another 7+yrs!
That's a stretch.
> Can they continue to demand penalties/interest
> along with $200 unpaid taxes when original assesment date was 6/7/1993?
There are a lot of variables that can extend the statute period. The
"contested this matter" might contain some papers that extended things out
for a while longer.
They will have all of the dates, and should be able to tell you when the
collection statute expires.
--
Paul A. Thomas, CPA
Athens, Georgia
Phil Marti
> Can they continue to demand penalties/interest
> along with $200 unpaid taxes when original assesment date was 6/7/1993?
If nothing happened to extend it, the statute for collecting that expired
6/5/2003. You need to ask the IRS specifically why they think it's been
extended.