Discussion:10-year statute of limitation
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Discussion Forum Index --> Basic Tax Questions --> 10-year statute of limitation
Discussion Forum Index --> Tax Questions --> 10-year statute of limitation
| 22 April 2009 | |
| How is the Statute of Limitation on tax liabiliy actually applied. Client has been notified in past years of tax liability for 1994, but nothing recently. Return never filed and no payments on the year were made. | |
| 22 April 2009 | |
| Order a transcript and eliminate the mystery. Chances are, it has been written off, but that is not certain. | |
| 22 April 2009 | |
| Oh! I was under the impression that failure to file had no statute of limitation and that the ten year SOL applied to collecting taxes once assessed. Not so? | |
| 22 April 2009 | |
| "Client has been notified in past years of tax liability for 1994...Return never filed..."
One can only assume that a Substitute for Return assessment was made when the taxpayer didn't file a return. So the Collection Statute Expiration Date would be 10 years from the assessment date plus any intervening events that would toll the statute such as bankruptcy or an OIC. Mike Wellman's advice to get an account transcript will provide the answer. -- Larry Hess, CPA | Albuquerque, NM | |
| 22 April 2009 | |
| Larry is correct. If a liability existed, and no return was filed, an SFR was done. It is subject to a ten year collection statute. Reference to a ten year statute in the question is another clue it was the collection statute being referred to. | |
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