Statute Of Limitations If You Don't File Valid Return
In most cases, there's a three-year statute of limitations for tax purposes. However, if you don't file a return, the general rule is that the statute never begins to run. In Roger Hattman (2006-2 USTC 50,536; U.S. Court of Appeals, 3rd Circuit) the taxpayer filed a Form 1040 that contained zeroes on every line.
The Court, affirming an unreported Tax Court decision, held that the Form was not a valid return and, thus, did not start the statute of limitations running. In order to be a valid return, the form must be executed under penalty of perjury and represent an honest and genuine or reasonable attempt to satisfy the requirements of the tax law.
Small Business Taxes And Management
http://www.smbiz.com
In most cases, there's a three-year statute of limitations for tax purposes. However, if you don't file a return, the general rule is that the statute never begins to run. In Roger Hattman (2006-2 USTC 50,536; U.S. Court of Appeals, 3rd Circuit) the taxpayer filed a Form 1040 that contained zeroes on every line.
The Court, affirming an unreported Tax Court decision, held that the Form was not a valid return and, thus, did not start the statute of limitations running. In order to be a valid return, the form must be executed under penalty of perjury and represent an honest and genuine or reasonable attempt to satisfy the requirements of the tax law.
Small Business Taxes And Management
http://www.smbiz.com
posted by Milt Baker CPA | 10:33 AM
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