Your Complete Guide to Tax Return Statute of Limitations

What Are Amended Tax Return Statute of Limitations?

The statute of limitations for taxes refers to the time limit for filing a claim. The statute of limitations for amended tax returns is generally three years from the date you file your original return or two years from the date you paid your tax, whichever is later.

The Internal Revenue Service (IRS) has the power to aggressively pursue any tax debt they feel they are owed. It is illegal to evade taxes. If you have questions about your income tax payments, additional taxes, or the internal revenue code in general, you can seek legal help for any tax and income-related questions.

With so many potential tax problems that could arise, just consulting an attorney may not be enough to resolve every tax issue you could have. Having a solid attorney-client relationship with a reputable law firm may dissuade the IRS from taking the more drastic measures they have in their arsenal. Contacting the professionals from Hutton Tax solutions could be an excellent first step in your IRS problem resolution in cases of a tax audit.

What Is the Statute of Limitations for Filing an Amended Tax Return?

An amended tax return must be filed within three years of the original return being filed. The statute of limitations is calculated from the date when the original return was filed. Any amended return must be filed within three years of this date, or penalties will apply, and interest will accrue on any unpaid taxes. 

Tax professionals can provide you with additional information about tax law and assess statute expiration dates if you are uncertain whether you need to file an amended tax return on your gross income.

What Is the Statute of Limitations for a Tax Return Not Filed?

The statute of limitations for filing a tax return is three years from the date the tax return was due, typically on April 15th of each year. If you don’t pay your tax bill, the IRS can take the following actions:

  • Garnish your wages

  • Confiscate your property

  • Send you to jail

IRS normally avoids wasting time and resources by taking taxpayers to federal court, but this option is available. If the tax liability is large enough, like millions of dollars, they may try to get a judgment against you. In turn, this has its own statute of limitations. You may benefit from the assistance of a qualified tax attorney if you face complicated tax issues. 

Can You Get a Tax Refund from Five Years Ago?

It is possible to claim a refund for taxes paid five years ago, but it is not advisable. Refunds should only be claimed after you have been audited and are certain that the IRS has overcharged you.

If you receive an IRS audit letter, you should strongly consider whether you would benefit from consulting with someone with experience in such matters. Professionals at Hutton Tax could walk you through the process.

IRS Amended Tax Return Statute of Limitations

Since the IRS amended tax return statute of limitations is three years, this means that the IRS has three years from the date of filing to assess taxes owed or grant a refund. Since tax laws are frequently updated and revised, the average person has a difficult time staying on top of their civic duties.

An experienced tax professional, such as that from Hutton Tax Solutions, can offer guidance and support if you need IRS help. They are familiar with all changes to the statute of limitations period and other tax details.

Can the IRS Extend the Statute of Limitations For Taxes?

The IRS has the power to extend the statute of limitations for taxes if they believe that a taxpayer is in a position to pay what they owe. This is done to prevent taxpayers from getting away without paying their taxes. 

Can the IRS Collect After Seven Years?

The IRS can collect taxes after seven years if they are owed. In fact, it has up to 10 years to collect if tax evasion is involved. Additionally, the IRS can extend the statute of limitations for a longer period, but some factors influence the length of the extension. These factors include the following:

  • A court granted bankruptcy protection to a taxpayer

  • A taxpayer is requesting a Collection Due Process hearing

  • A taxpayer is requesting a Taxpayer Assistance Order from the Taxpayer Advocate

  • A taxpayer has an installment agreement with the IRS and has made all payments on time

  • A taxpayer has an offer in compromise with the IRS, and it has not been rejected yet

  • A taxpayer is making monthly payments under a partial payment agreement with the IRS

It may also be possible for the IRS to extend the statute of limitations for litigation proceedings. Hiring an Oklahoma tax attorney may provide the answers you need if you are unsure of your options and wish to avoid negative consequences.

Would Hiring an Attorney Help With Tax Return Problems? 

Having trouble paying your taxes can lead to the seizure of your property, garnishment of your wages, and even jail time. So, if you have problems filing your tax return, hiring an attorney is extremely important.

Depending on the type of tax issue you face, a tax relief attorney might be unable to resolve all your tax problems. Even so, it is an excellent first step because the IRS will be less likely to take drastic measures against you if you have an attorney on your side.

Get in touch with Hutton Tax Solutions today to schedule a free consultation.