TN 5 (12-92)

RS 02201.025 IRS Statute of Limitations — Tax Assessments, Refunds and Credits


SSR 65-42C, C.B. 1960-1965, p.332

A. Policy Principle

IRS' authority to assess taxes or compel the filing of wage or SE returns is governed by its own statute of limitations.

B. Operating Policy

1. IRS Statute

  1. a. 

    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 period.

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.

  1. b. 

    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.

  2. c. 

    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.

2. Relation To SSA Policy

  1. a. 

    An extension by IRS of its time limitation does not affect SSA's time limitation.

  2. b. 

    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.

C. Procedure

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.

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RS 02201.025 - IRS Statute of Limitations — Tax Assessments, Refunds and Credits - 12/14/1992
Batch run: 07/03/2014