The saga over what is the correct statute of limitations for basis overstatements continues. Paul Caron reports: The Tenth Circuit yesterday reversed the Tax Court and held that Reg. § 301.6501(e)-1 is entitled to Chevron deference and concluded that overstated asset basis triggers the six-year statute of limitations. Salman Ranch Ltd. v. Commissioner, No. 09-9015 (10th Cir. [...]
Tags: Court Cases · IRS Audits · Statutes of Limitation
Paul Caron reports that the Fifth Circuit has now joined the Fourth and the Ninth in holding that the an overstatement of basis is not the same as an omission of income and, therefore, the extended statute of limitations on assessments (6 years instead of 3 years) that applies to income understatements does not apply to [...]
Tags: Court Cases · Statutes of Limitation
The IRS has ten (10) years from the date of a tax assessment to collect a debt from the taxpayer. The date the collection statute expires is called the Collection Statute Expiration Date or CSED. When this date passes, the IRS is barred from attempting to collect your tax debt unless you waive the enforcement of the [...]
Tags: Statutes of Limitation · Tax Collections
David Loeb v. Commissoner of Internal Revenueand Harold Molaison v. Commissioner of Internal Revenue (Consolidated) – The issue for decision in these consolidated cases was whether the statute of limitations barred the IRS’ issuance of the Notices of Deficiency. IRC § 6501(a) provides, Except as otherwise provided in this section, the amount of any tax imposed by [...]
Tags: IRS Penalties · Statutes of Limitation
