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.
A waiver is a voluntary surrender of a right or a privilege possessed by a person. In most cases waiver is given in a written format.
Waiver of a statute of limitation would mean giving up of the lawful term or the time period that has been set. For example, if the person being faced by the statute of limitations does not object to it or does something to stop it, then it would be considered as a waiver and the required action would be taken thereafter. For example the governments sets a statute of limitation for tax refunds and if the tax assessor does not claim the refund within the stipulated time set by the government then it is considered as a waiver of the statute of limitations where the government can write off the amount and it may not be returned to the assessor. Similarly, the government sets the statute of limitations for collecting the tax returns and if the tax assessor does not pay or respond to the IRS, it has every right to waiver the limitation and proceeds legally.
This term is commonly used by the IRS in the tax department and waivers and limitations usually apply to tax collection or refunds.
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