Statutes, Penalties & Interest
Important Time Limits and Penalties
Federal tax law contains statutes of limitation governing assessments, refunds, and collections. Failure to comply with tax requirements may result in civil penalties, criminal penalties, and interest charges.
- Statute of limitations for assessments.
- Statute of limitations for refund claims.
- Late filing penalties.
- Late payment penalties.
- Accuracy-related penalties.
- Fraud penalties.
- Interest on unpaid tax.
Note
The CPA Exam typically emphasizes understanding when penalties apply rather than memorizing exact percentages.
Summary
Knowing statutes of limitation and common penalties helps taxpayers remain compliant and avoid unnecessary costs.