Does the statute of limitations apply to my tax situation with the IRS? 4 Answers as of November 27, 2012The IRS says that my wife and I owe back taxes from 1997 and 1999. we in the past would receive letters in regards to this and had our accountant respond asking for "proof" which was never sent, but the letters kept coming anyhow. We never made any payments as no monies were actually owed. We no longer receive letters and are wondering if the 10 year statute has run out and how do we determine if so and how do we have the IRS release us fron this debt we do not owe. I filed my taxes last year and my refund was held for supposedly unpaid back taxes.I am looking for reasonable fee to be paid to attorney or accountant to determine when the statute does expire. I have almost every letter received from the IRS.
E. Ray Critchett, LLC | Ray Critchett
Generally, there is a3 year statute of limitations for the IRS to audit a tax return and a 10 year statute of limitations for hte IRS to collect tax. However, there are exceptions to these time periods, such as for fraud or failure to file a return. If your last refund was held, you should contact a tax professional to ensure that the IRS does not take further action. You may contact our office to schedule an appointment if you have further questions or if you need assistance with this issue. You can also schedule an appointment or obtain additional information at our website.
Answer Applies to: Ohio
Givner & Kaye | Bruce Givner
The regular statute of limitations is 3 years. It is extended to 6 years if there was a 25% or greater omission from gross income. If no return was ever filed, then the statute of limitations does not run until a return is filed. There is no 10 year statute of limitations. The IRS does not have to prove that you owed taxes; you must prove that you do not owe taxes. If you let me know where you live, I may be able to refer you to an appropriate person if you CPA is unable to help you.
Answer Applies to: California
Mankus & Marchan, LTD | Tony Mankus
The statute of limitations for collection of taxes is 10 years from the date of assessment. It can be extended several ways: by filing bankruptcy, by making an offer in compromise, by leaving the country to live outside of the U.S., etc. You can request a transcript from IRS of the tax years involved. That should help you determine the statute expiration date, although you would be wise to consult with a tax attorney who specializes in tax collection issues.
Answer Applies to: Illinois