What is statute of limitations on collection of federal and other tax?

Answer 1

There are many SOLs..ones for reviewing return, ones for assesing the tax, and ones for collecting the tax assessed. The SOLs are different for each type of tax. And different State by State or Federal, but we this holds generally for most income taxes anywhere. For individuals, the first is generally 3 years from when you filed the return.

If there is a gross understatement of tax (25%), then the statute is 6 years.

There is no statute if fraud is involved. (Fraud can sometimes be considered by intentionally not paying any amount, especially over 25%, without any real legal support. The Statutes don't even start to run until a return is filed. (Didn't file, always open). Which generally answers most peoples questions who think they can wait out some time limit after not filing...doesn't work. The way the time is counted gets complex. Many things toll the running of time...like the IRS sending a letter (reponded or claimed to have been received or not), negotiating, etc. So, ignoring them long enough doesn't work either. See, all the jurisdictions have been through this, for many decades, many thousands upon thousands of times...they basically have seen it all before and they nor the law makers there are going to be easily outsmarted into being beaten out of tax monies. If there has been any reason to question a tax return and they see any chance of running out of the SOL, they send a request for an extesnion of time...which if you don't agree to they issue what is called a jeopardy assesment before the SOL for assessment runs out. Specifically allowed if the Govt is at "jeopardy" of losing revenue. These assessments are obviously very high and worse, actually become what you then have to prove inaccurate by specific amounts. Up until then the Govt had to prove you wrong. Yes there is.

The statue of limitations on assessments is the period in which the government can levy an additional tax

1 - Three years from the later of

a) Due date of the return or date the return is filed

There is no statue of limitation for fraudulent or filing false returns. Actually the above is misleading: In almost all cases, the initial amount of tax is almost unimportant after a while since your still accruing interest, penalty, etc., ...whats the SOL on it?

And most importantly, tax liens, generally, don't actually have an SOL. They end once they are paid. If on a property, that will be when the jurisdicition gets paid which may be (and frequently is) when they force the sale. However, I suspect you may be thinking about what the SOL is for assessment of a tax. A different thing from collecting, but still varies by all the things...which tax, where, how it is handled, what was filed, what wasn't filed, how inaccurate it was (most if over 25% wrong have yet special rules and penalties) etc. And, almost all SOLs, especially those on income, only start to run once a return is filed....so if you never filed a return, the SOL is essentially forever.AND IF A TAX IS ASSESED BEFORE THE SOL RUNS OUT, IN MOST PLACES, THAT ASSESSMENT NEVER TIMES OUT...THE RIGHT TO COLLECT REMAINS.