Tag Archive for Tax Assessment

How Long Are You On The Hook For A Tax Assessment?

A frequent question from taxpayers is:

How long does the IRS have to question and assess additional tax on my tax returns?

For most taxpayers who reported all their income, the IRS has three years from the date of filing the returns to examine them. This period is termed the statute of limitations. But wait – as in all things taxes, it is not that clean cut. Here are some complications:

You file before the April due date – If you file before the April due date, the three-year statute of limitations still begins on the April due date. So filing early does not start an earlier running of the statute of limitations. For example, whether you filed your 2014 return on February 15, 2015 or April 15, 2015, the statute did not start running until April 15, 2015. Read More

Written by | Posted in Income Tax • Individual • IRS • Tax Provision/Tax Reporting

How IRS Seizures Work

If you or your child has ever played the game “Sims”, then you know what happens when you fail to pay your bills on time. The Repo man comes and zaps your couch into nonexistence with a laser gun! It’s a traumatic moment for your Sims, but one that can be rectified with time and a few more Simoleons (Sim currency). IRS seizures, or liens, don’t work quite the same way of course, but the end result is similar: They will take what they are owed. How can you stop a tax seizure? First, let’s look at the pre-seizure process.

The IRS has a three-step process to ensure that you are adequately notified that they intend to seize your property and/or pay. This is intended to allow you to appeal or contest the tax levy. You’ll receive a “Notice of Demand for Payment,” a “Final Notice of Intent to Levy and Notice of Your Right to a Hearing,” and then if you don’t respond, the IRS can Read More

Written by | Posted in IRS • Tax Planning