What is the statute of limitations on collection of one years' underpaid federal income taxes?

Answer 1

This is, suprisingly, one of the tughest things to answer. Like much of the tax code there are lots of twists and turns. This answer is for you and may includehel for others wth similar qs. The clock starts running with the filing of somthing that qualifies as a return...don't file a good enough one and your perpetually open. The short answer you'll get is 3 years...that is how long they have to "assess" an extra tax. Collecting from then can go on and on. However, they can audit for much longer, especially certain aspects that may be onging and have effects in other years...and pragmantically...they'll find a way to make it. Also, if the underpayment is more than 25% of what it shuld have been, the statute is extended. Also, many things, like their requesting info...regardless of your response or not, tolls te running of the clock. If it's involved with an actual partnership return (a K-1 from a 1065)....well those can go on forever. Hence, I would suggest that you consider 7 years the time when, once again, just historically/experience says they really don't pursue things. Also consider you may have a State liability, and generally. the amount, your profile and such can have an effect too.