Statutes of limitations prevent the IRS from taking action against you or reviewing your taxes indefinitely. There are time limits the IRS must adhere to for assessing, collecting, and refunding taxes. As a Maryland taxpayer, you should know what these statutory time periods are.
Statute of Limitations for Assessing Taxes
Assessing taxes means charging taxes. The IRS cannot assess additional taxes from you after a certain date has passed. This time limit is usually three years from the due date of your tax return or the date you filed the return, whichever is later. If the IRS believes you’ve committed tax fraud, however, it can begin assessing the tax debt at any time, without limitation.
Statute of Limitations for Collecting Taxes
The IRS cannot use enforcement actions to collect on a tax balance after the collection statute expiration date. Once this date expires, the IRS writes off the remaining tax balance. The time period the IRS has to collect taxes is usually 10 years from the date the IRS assessed the tax. However, if you file for an Offer in Compromise, this 10-year timeframe can be extended. However, it’s possible for the IRS to sue in federal district court in order to collect taxes, which can extend the timeframe by 20 years.
Statute of Limitations for Refunding Taxes
Just as the IRS is time-limited in the actions it can take, so are you as the taxpayer. You can only file a claim for credit or refund within three years of filing your return or within two years of paying the tax, whichever is later. If you wait more than three years to file the claim, your refund is forfeited.
File Your Returns on Time with the Help of a Maryland Tax Attorney
When it comes to filing taxes, there are a lot of deadlines to remember. If you work with a reliable tax attorney, they can keep track of those dates for you. At Gabaie & Associates, LLC, we’ll ensure your tax paperwork is filed before the statutory period expires. We’ll also defend your interests if the IRS erroneously tries to collect from you after the statute of limitations.
If you’re a taxpayer in Baltimore, Columbia, Frederick, Rockville, or anywhere in Maryland, call us at (410) 358-1500 for assistance with your taxes. You can also fill out our online form with your information, and a member of our team will get back to you.
