Statutes of Limitation
Important Time Limits
Federal tax law establishes time limits for assessing tax, claiming refunds, and collecting unpaid liabilities. These statutes provide certainty for both taxpayers and the government.
- Assessment statute.
- Refund claim statute.
- Collection statute.
- Exceptions for fraud or failure to file.
Tip
For the CPA Exam, understand when statutes begin and recognize that fraud or failure to file can significantly extend or eliminate certain limitations.
Summary
Statutes of limitation define how long the IRS and taxpayers have to take specific legal actions.