Taxpayers have the right to know the maximum amount of time they have to challenge the IRS’s position as well as the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt. Taxpayers have the right to know when the IRS has finished an audit.
What this means:
- When you file your tax return, the IRS typically has three years from the date you file your return, to assess any additional taxes for that tax year. There are a few small exceptions. For instance, the IRS has an unlimited amount of time to assess tax for that tax year if you fail to file a return or file a false or fraudulent return.
- In most cases, the IRS has ten years from the date of the assessment to collect unpaid taxes from you. This 10-year period cannot be extended by the IRS unless you agree to extend it as part of a payment plan or if the IRS wins a court judgment. The ten-year collection period may, however, be paused and resumed later by the IRS in certain instances. The IRS might have the option to do this in the event that there's a period when the IRS can't gather, for example, bankruptcy or a collection due process proceeding.
- If you have overpaid on your taxes, you will need to make a claim for a refund within two years of paying the tax, or three years from the date you filed your initial return, whichever is later.
- In the event that the IRS sends you a statutory notice of deficiency, the notice must list the deadline for when you can file a petition with the Tax Court to challenge the listed on the notice.
- You must file your petition in Tax Court within 90 days (150 days if the taxpayer's address on the notice is outside the United States or if the taxpayer is out of the country at the time the notice is mailed) in order to timely challenge a statutory notice of deficiency. The IRS will assess the amount suggested in the statutory notice and send you a bill if you do not file a petition in a timely manner.
- In most cases, the IRS can only look at your tax return once per tax year. However, if the IRS deems it necessary, it may reopen a previously examined return. For instance, the IRS can reopen an examination if there is evidence of fraud.
The focus of our practice is helping individuals and businesses resolve their IRS tax problems in the Las Vegas, Nevada, St. George, Utah areas, and elsewhere. If you or someone you know is dealing with IRS problems, contact me at 702-469-9426 or candy@numbercruncherllc.tax.
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