for an intentional violation the irs can go back forever
some types are limited to 3 or 7 years
and that... is all she wrote.
the "intentional" is the key aspect of this.
intentional constitutes tax fraud, and there
is no statute of limitations on tax fraud.
the irony is that most folks assume there is
no time limit on tax liability, period.
in the absence of fraud, just a simple debt,
the statute of limitations on a tax debt being
collectable is 36 months.
two tests on that:
the tax return must have been filed in a timely
manner. extensions are a timely manner, btw.
the liability cannot be discharged until 36 months
after the lien
has been recorded. not assessed,
but recorded at the registrar of the county in which
the taxpaying entity resides or maintains their business
address.
that can be years after the collection process starts.
-1984 bankruptcy code, article 802, subparagraph C1, iirc.
i'm pretty sure that is still the law in these matters.
my ex wife's ex husband got himself and her in a shale oil tax
shelter in TY 1984. after the divorce, the IRS began collection
after disallowance. it was a long and painful process. she was
able to discharge a tax liability of $1,950,000 in 1990, 37 months
after the lien was filed at the county level.
the short version is, taxes are nothing to screw with. my ex's ex,
to prevent the collection process, waived his right to the statute
of limitations on that tax year, thinking he'd beat it. he never did.
after he left the country over this, and returned to his native france,
that liability hounded him until his death. then the liability took
precedence over any heirs claims on his estate.
the treasury took it all.
the takeaway? don't screw with your taxes.... or anyone else's. like
employees.
