Tax Statute Of Limitations  

The tax statute of limitations is created by the Internal Revenue Services (IRS) for auditing purpose or for tax collection and there is a limit to the time period during which the IRS can take action against a tax defaulter.

Under general terms there is a 3 year limitation for auditing tax returns and there is a 10 year statute for the IRS collecting taxes. There are several sections under the tax laws that govern the limitations for collecting tax returns. The statute of limitation cannot be applied to a person who is trying to evade tax or trying to file a false tax return.

The tax statute of limitations can also extend to a person who can claim a tax refund or an overpayment of tax within 3 years from the date the tax return is filed. The limitations apply to both for collecting tax returns and for paying taxes.

In the United States, the limitations of tax statutes differ for state to state. For example, in the state of California there is no tax statute of limitations. It is best to check with the IRS department of the respective state for the exact procedures and rules for the tax statutes and limitations.

The main advantage of this statute is to prevent the IRS from collecting tax dues and resultant penalties and interest forever. Some states like Connecticut, on the other hand, have stringent tax laws and the statute of limitations on taxes can extend up to a period of only 3 years unlike some other states where the tax statute of limitations is around 10 years.

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Waiver-Of-The-Statute-Of-Limitations      A statute of limitation is statute that belongs to the common law system and it is used to set a maximum period of time for a particular event after which legal proceeding cannot be initiated. Statue of limitations is different for different things. For instance, statute of limitation for income tax is 10 years and for murder there is no statute of limitation. So, even after 50 years, a person can be tried for murder; however, a person who has evade tax for a particular year can be tried only for 10 years from the year the evasion took place. More..

 


 

 

 
   
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