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Statue of Limitations General Rule
- 3 years from Later of:
- a. Due date of return (apr 15 starts for 3 years)
- b. Date return is filed (including amended returns)
25% understatement of gross income
statue of limitations
- 1. 6 years from later of:
- a. Due date of return, or
- b. Date return is filed.
Fraud or False Returns
Statute of Limitations
1. No statute of limiations for fraud or filing false returns.
Estimated Tax and inadequate witholdings
- 1. taxpayer typically makes pre-payments of tax during the yr.
- 2. req to make qtr pmts if:
- A.) $1,000 or More Tax Liability = better be making pmts
- B.)Inadequate Tax est
- other condition is met if the taxpayer's witholdings is less than the lesser of:
- * 90% of current yr's tax, or
- * 100% of last yr's tax
- If income >150k then 110% of prior yr's tax
Failure to Pay Est Taxes - Penalty
- 1. may assess penalty
- 2. no penalty if liablity is less then 1k
- 1. 1040X: claim refund, 3 years from date filed or the original due date OR 2 yrs from the time the tax was paid.
- 2. Bad Debts, worthless securities, 7 years later of due date or when filed.
- 3. 1139 claim a refund of corp income tax
- 4. 1045 quick refund
- 5. 843 req a refund of taxes other than income tax.