When it
comes to dealing with the IRS, you don’t just have an indefinite amount of time
to do things. Instead, the IRS typically sets deadlines and statutes of
limitations that impact how much time you have before an option runs out. The
IRS even sets some limitations on itself. Read on to learn about a few such
rules and regulations and how they might affect you.
Getting a
Return
As you might
have guessed, when the IRS owes you money, they’re not just going to hang onto
it forever, waiting on you to come and pick it up. Instead, they set and
enforce a strict deadline on how long you have to claim a refund. The statute
of limitations is three years from the original deadline for the relevant tax
year. So, if you’re owed money, get it before time runs out, or prepare to kiss
it good-bye!
Getting
Audited
One of the
things that taxpayers fear most is facing an audit. Thankfully, though, the IRS
can’t just indefinitely audit you for a past tax year, at least in most cases.
Instead,
they have up to three years from the day you filed a tax return or the tax
filing deadline for that year, whichever is later, to audit your return.
Collecting
Tax Debts
People will
often tell you that you can never escape an IRS tax debt. However, that’s not
totally true. There is actually a statue of limitations on how long the IRS has
to collect a debt, and it’s ten years. The clock starts ticking once a tax
liability has been finalized. Anything that you may still owe when the deadline
hits goes away, just like that!
While these
statutes of limitations are considered “the law,” know that the IRS always has
exceptions in every situation. To learn if any might apply in your case, or if
you have other questions about these or further statutes of limitations laws,
don’t hesitate to contact a tax professional in your area.