College of Law
Summary of Statutes of Limitation
There are several statutorially fiscal periods of time beyond which taxpayers or the IRS may not take certain actions. Those include statutes of limitation on assessment, collections, and refund claims.
Before tax is permitted to be collected, there must be, among other steps taken by the IRS, an "assessment" of tax. Assessment authority is granted to the "Secretary" in § 6101.
Prior to an assessment, the taxpayer usually receives various administrative notices and also a statutory notice of deficiency.
As "assessment" is made by an "assessment officer" signing the summary record of assessment. Form 23-C or RACS Report-006, "Summary Record of Assessment". § 6203, Reg. § 301.6203.1
Administrative 30-day Letter - A letter explaining that the IRS does not agree with the taxpayer's position and it notifies the taxpayer that the taxpayer has thirty (30) days to start the appeal process.
Statutory Notice of Deficiency § 6212 - § 6213. Taxpayer has 90 days from the date on the Notice of Deficiency to petition the U.S. Tax Court for relief. The 90 day period cannot end on a weekend or a legal holiday; if it does you simply do not count that day. Deficiency is defined in § 6211 as excess of tax imposed over tax on return or previously assessed.
After assessment and before collection activities begin, the IRS must send to the taxpayer a statutory "Notice and Demand For Tax".
Statutory Notice and Demand § 6303 - IRS must notify the taxpayer of the amount of unpaid tax and demand payment within 60 days of making an assessment. If the IRS fails to comply with § 6303 the assessment will remain valid but the IRS will be barred from utilizing its lien and levy collection powers.
After a properly served Notce and Demand for Tax, the IRS may file a federal tax lien and may institute levy proceedings, but only after properly served notices of lien and levy.
Statutory Notice of Lien § 6320 - IRS must notify taxpayer of the filing of a federal tax lien within 5 business days after the filing on the notice of lien. After this 5 day period the taxpayer has only 30 days to appeal the filing of the lien. If the IRS determines that it failed to properly provide a taxpayer with notice, it will promptly provide the taxpayer with a substitute notice and provide the taxpayer with an opportunity to request a hearing
Statutory Notice of Levy § 6330 - IRS must notify tax payer of intent to levy at least 30 days prior to the date of the first levy. Taxpayer can request an appeals hearing only during this 30 day window (an appeals hearing will toll the statute of limitations on levy actions, collections, prosecution of criminal matters, and all suits under § 6532 for the period of the appeal).
Statutory Notice of Determination § 6015 - A petition to the Tax Court of a denial of innocent spouse relief is appropriate if filed within 90 days after the IRS's final determination of relief is mailed to the taxpayer by the IRS. A claim for relief under the innocent spouse rules must be made within 2 years from the date the IRS has commenced collection proceedings.
After the IRS files various statutory notices, the statute of limitations may be suspended. § 6503
Offers in Compromise § 7122 - An offer can be made after receiving an assessment from the IRS. The IRS cannot engage in collection activities while an offer is being considered.
If tax has been paid, a taxpayer may file a claim for refund.
Credits or Refunds § 6511 - A claim for a credit or refund must be filed within 3 years from the date the original return was filed or within 2 years from the date the tax was paid, if later. If no return was filed, the claim must be filed within 2 years from the date the tax was paid. If a claim for refund is denied by the IRS, the taxpayer can file a suit for refund within 2 years after the denial of the claim for refund.
