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emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2997
Experience:  IRS licensed Enrolled Agent and tax instructor
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Looking statute of limtitations on the filing and payment of

Customer Question

Looking for the statute of limtitations on the filing and payment of 041 taxes. Received notice of missing 941 from 2005 that don't exist b/c of Katrina and no employees for the periods in question but if the statute has run then its too late, correct?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.
Hi. My name is ***** ***** I will be happy to help you.
Statute of limitation for review/audit/assessment is 3 years from the due date or filing date of the return, whichever is later. It means, IRS has 3 years to review and/or assess additional tax. If there's more than 25% of unreported income, the statute can be extended up to 6 years.
Statute of limitation for collection is 10 years from the date of assessment (could be extended with pending offer in compromise, installment agreement...). It means, once IRS determined that you owe additional tax, they have 10 years to collect. For example, if 2005 return was filed on or before April 15, 2006 (filed on time), and on March 20, 2009 (withing 3 years of filing) IRS assess additional tax, they have until March 20, 2019 to collect.
If the return was never filed, or if you intentionally file false or fraudulent, there's no statute of limitation.
If you had a business federally declared disaster area during the disaster, filing deadlines are usually extended but you still have to file a return. If you lost your records, IRS will accept reasonably reconstructed records.
Let me know if you have any questions.
Expert:  emc011075 replied 1 year ago.

I see you read my respond. Do you have any questions? Is there anything else I can help you with today?

And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.