Tax Dictionary – Statute of Limitations

IRS Definition:

A statute of limitation is a time period established by law to review, analyze and resolve taxpayer and/or IRS tax-related issues. The Internal Revenue Code (IRC) requires that the IRS will assess, refund, credit, and collect taxes within specific time limits.

More from H&R Block:

A statute of limitations is a time period the IRS has to take certain actions. These can be confusing because special rules apply to when a statute of limitations begins, can be extended, and closes.

There are three statutes that apply to taxpayers:

The assessment statute: The assessment statute expiration date (ASED) is the time period the IRS has to charge you additional taxes on a given tax year. The ASED is generally three years after you file the return or two years after you paid the tax, whichever is later. Learn how to handle IRS audits.

The refund statute: The refund statute expiration date (RSED) is the last day you can request a refund. You can request a refund if you filed a return within three years of the due date of the return (including extensions) or two years after you paid the tax, whichever is later. Learn how to address IRS tax return and account problems.

The collection statute: The collection statute expiration date (CSED) is the last day that the IRS can collect on an outstanding balance that you owe. The CSED is 10 years from the date the IRS assessed the taxes. Learn what to do if you can’t pay your taxes.

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