IRC 6501 – The Three-Year Rule for the IRS to Assess a Tax

The IRS must assess any tax imposed by Title 26 the Internal Revenue Code within 3 years after the return was filed This applies whether the return was filed on or after the prescribed date Key Exceptions to the 3Year Rule 6501c False or Fraudulent Return 6501c1. No limitation period tax may be assessed at any time if the return is false or fraudulent with intent to evade tax Willful Attempt to Evade Tax 6501c2. No limitation period for taxes other than income estate or gift taxes if there is a willful attempt to evade No Return Filed 6501c3. No limitation period if no return is filed Extension by Agreement 6501c4. The period can be extended by written agreement between the IRS and taxpayer before the original period expires The extension can be further extended by subsequent written agreements Special Cases. Other exceptions include Adjustments from changes in certain credits 6501c5 Termination of private foundation status 6501c6 Amended returns showing additional tax within 60 days of expiration 6501c7 Failure to notify the IRS of certain foreign transfers 6501c8 Gift tax on certain gifts not shown on return 6501c9 Listed transactions not disclosed 6501c10 If a taxpayer fails to disclose a listed transaction as required the limitations period does not expire until 1 year after the required information is furnished by the taxpayer or a material advisor. Certain orders of criminal restitution 6501c11 Partnership adjustments 6501c12