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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11182
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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A business closed November 2005. Payroll tax returns were

Customer Question

A business closed November 2005. Payroll tax returns were filed thru 3/31/2003. From 3/31/03 thru 11/30/2005 the company had payroll BUT did not file any returns or pay any taxes.
The IRS has prepared returns and assessed taxes due from 06/30/2003 forward. The IRS prepared the returns and assessed the taxes on 2/15/2016. Can the IRS do that? Does the 10 year statute of limitations apply here?
Submitted: 9 months ago.
Category: Tax
Expert:  Lane replied 9 months ago.

Hi,

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So sorry, but the statutory clock never starts running until a return is filed or IRS assess a tax.

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Let me know if you have questions

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Lane

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I have a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, on three continents, since 1986.

Customer: replied 9 months ago.

Got it, so in 2016 the IRS can go back 13 years and prepare a return?

Expert:  Lane replied 9 months ago.

Yes, they won't normally do that for income taxes, but it's quite common for payroll taxes (Trust Fund recovery Penalty- IRC Section 6672)

Expert:  Lane replied 9 months ago.

So sorry to be the messenger, but yes I've seen them go back as far as 20 when no 941 was ever filed.

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Please let me know if you have any questions at all.

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If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit")

JustAnswer will not credit me for the work unless you do.

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Thank you!

Lane

I have a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, on three continents, since 1986

Expert:  Lane replied 9 months ago.

Hi John,

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I’m just checking back in to see how things are going.

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Did my answer help? If so, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit")

JustAnswer will not credit me for the work unless you do.

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But if you need more here, let me know.

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Thank you!

Lane

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