TN 5 (12-92)
IRS' authority to assess taxes or compel the filing of wage or SE returns is governed
by its own statute of limitations.
IRS can assess more taxes or, make the employer or self-employed individual furnish
more information for the period covered by the return only within 3 years from the
date the return was filed, unless the taxpayer agrees to an extension beyond the 3-year
NOTE: For employment tax purposes a Form 941 filed during a year covering wages paid in
that year is deemed to have been filed on April 15 of the following year.
In the case of a false, fraudulent or evasive tax return, or a failure to file a return,
the taxes may be assessed or a proceeding in court for collection without assessment
may be begun at any time.
A claim for credit or refund of an overpayment of any tax imposed under the Internal
Revenue Code (IRC) must be filed by the taxpayer within 3 years of the time the return
was filed or 2 years from the time the tax was paid, whichever is later.
An extension by IRS of its time limitation does not affect SSA's time limitation.
SSA's E/R may not be credited because of the expiration of the time limitation but
liability under the IRC may exist for filing a return and payment of taxes.
Refer any questions about tax liability assessments or refund to IRS since the periods
for correction of wages and SE tax items are not always the same.