Tax Statutes of Limitations: Advising Taxpayers on the Assessment, Collection, and Refund Statutes

Understanding the tax statutes of limitations is critical for tax professionals. The assessment statute limits the timeframe the IRS can assess taxes due. This generally occurs three years after the due date of the original return, including extensions, or three years from the received date of a return, whichever is later. Once the CESD passes, the IRS cannot collect any remaining tax balances. The RSED is the last date a taxpayer can collect a refund due from the IRS.

Certain acts and a taxpayer's consent can lengthen these statutes. In other cases, a statute of limitations can run indefinitely. Tax professionals need to thoroughly understand when each statute expires, the circumstances that cause the extension of a statute, and how to properly advise taxpayers about the tolling of these statutes.

Listen as our seasoned federal tax professional explains the nuances of one of the most critical tax statute deadlines for CPAs, EAs, and other tax professionals working with taxpayers and the IRS.

1. Introduction: tax statutes of limitations
2. Current applicable statutes of limitations
3. RSED – Refund statute expiration date
4. ASED – Assessment statute expiration date
5. CSED – Collection statute expiration statute date
6. Actions extending the ASED and CSED
7. Cases when the statute of limitations can run forever
8. Examples

The panelist will cover these and other critical issues:

• Should a taxpayer choose to voluntarily extend the collection statute during an IRS audit?
• What specific acts extend the assessment statute?
• What is the last date a taxpayer has to receive a refund of taxes paid?
• What causes the assessment statute to run indefinitely?
• How and when should practitioners advise taxpayers about expiring statutes?

Learning Objectives

After completing this course, you will be able to:

• Identify specific circumstances that extend the ASED
• Determine how long the IRS has to collect past due taxes
• Decide which actions extend the ASED and CSED
• Ascertain when and whether taxpayers should voluntarily extend the collection statute

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).