Criminal Tax Statutes Of Limitations And Suspensions: 18 U.S.C. § 3292 And The Fifth Circuit’s Decision In Pursley

In civil and in criminal cases, the Government must generally act within a certain prescribed time to take action against taxpayers.  In legal parlance, this period of time is known as the “statute of limitations.”  The statute of limitations generally forces the Government to show its hand and file suit more quickly to avoid prejudice to taxpayers, which may occur through stale evidence or faded memories.

The statute of limitations for many criminal tax cases is located in I.R.C. § 6531.  For example, that provision states that the Government must generally bring a criminal action against a taxpayer within 6 years after the commission of the offense.  But there are exceptions to this general rule.  Indeed, the recent Fifth Circuit Court of Appeals decision in U.S. v. Pursley discusses one notable exception potentially applicable to taxpayers with foreign activities and foreign accounts:  18 U.S.C. § 3292.

Relevant Facts.[i]

Read More