# Say what? A statute of limitations on federal tax liability? **URL:** \ **Category:** Factual Questions\ **Created:** [January 22, 2009, 8:08am UTC](https://boards.straightdope.com/t/say-what-a-statute-of-limitations-on-federal-tax-liability/482425 "2009-01-22T08:08:25Z")\ **Posts on this page:** 12\ **Page:** 1
**Author:** ![Rusalka](https://avatars.discourse-cdn.com/v4/letter/r/ecd19e/32.png) [@Rusalka](https://boards.straightdope.com/u/Rusalka)\ **Post date:** [January 22, 2009, 8:08am UTC](https://boards.straightdope.com/t/say-what-a-statute-of-limitations-on-federal-tax-liability/482425/1 "2009-01-22T08:08:25Z")
News reports about Geithner, the new Secretary of Treasury nominee, mention that the “statute of limitations” had run out regarding his payment of federal taxes for 2001-2004. I’ve never heard of such a thing, what’s that all about? ---
**Author:** ![BrightNShiny](https://avatars.discourse-cdn.com/v4/letter/b/7bcc69/32.png) [@BrightNShiny](https://boards.straightdope.com/u/BrightNShiny)\ **Post date:** [January 22, 2009, 8:11am UTC](https://boards.straightdope.com/t/say-what-a-statute-of-limitations-on-federal-tax-liability/482425/2 "2009-01-22T08:11:30Z")
Yeah, it’s 3 years generally, but I’ll let a tax person fill in the details. ---
**Author:** ![Tom\_Tildrum](https://avatars.discourse-cdn.com/v4/letter/t/e95f7d/32.png) [@Tom\_Tildrum](https://boards.straightdope.com/u/Tom_Tildrum)\ **Post date:** [January 22, 2009, 3:38pm UTC](https://boards.straightdope.com/t/say-what-a-statute-of-limitations-on-federal-tax-liability/482425/3 "2009-01-22T15:38:03Z")
I think it’s three years for negligent errors, and seven years for fraud. ---
**Author:** ![Gus\_Gusterson](https://avatars.discourse-cdn.com/v4/letter/g/85f322/32.png) [@Gus\_Gusterson](https://boards.straightdope.com/u/Gus_Gusterson)\ **Post date:** [January 22, 2009, 3:46pm UTC](https://boards.straightdope.com/t/say-what-a-statute-of-limitations-on-federal-tax-liability/482425/4 "2009-01-22T15:46:39Z")
> [@Tom\_Tildrum](#): > > I think it’s three years for negligent errors, and seven years for fraud. There is no statute of limitations if you have committed fraud. ---
**Author:** ![suranyi](https://avatars.discourse-cdn.com/v4/letter/s/e36b37/32.png) [@suranyi](https://boards.straightdope.com/u/suranyi)\ **Post date:** [January 22, 2009, 5:21pm UTC](https://boards.straightdope.com/t/say-what-a-statute-of-limitations-on-federal-tax-liability/482425/5 "2009-01-22T17:21:40Z")
> [@Gus\_Gusterson](#): > > There is no statute of limitations if you have committed fraud. Right, the rule is three years in general, seven years for negligent nonreporting of income, no limit for fraud. So the key determining factor was – was this an honest mistake (i.e. “negligence”)?. Then a statute of limitations comes into play. Was the mistake related to reporting of income or some other issue? Then the statute of limitations is either seven years or three years. Ed ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [January 22, 2009, 5:57pm UTC](https://boards.straightdope.com/t/say-what-a-statute-of-limitations-on-federal-tax-liability/482425/6 "2009-01-22T17:57:52Z")
> [@suranyi](#): > > Right, the rule is three years in general, seven years for negligent nonreporting of income, no limit for fraud. > > So the key determining factor was – was this an honest mistake (i.e. “negligence”)?. Then a statute of limitations comes into play. Was the mistake related to reporting of income or some other issue? Then the statute of limitations is either seven years or three years. > > Ed It’s a six year SOL for Substantial Underpayment, not 7. That’s IRC @ 6501(e), which requires a excess of 25% of the amount of gross income stated in the tax return filed with the IRS. Geithner is correct on the SOL. ---
**Author:** ![The\_Second\_Stone](https://avatars.discourse-cdn.com/v4/letter/t/bbe5ce/32.png) [@The\_Second\_Stone](https://boards.straightdope.com/u/The_Second_Stone)\ **Post date:** [January 22, 2009, 6:16pm UTC](https://boards.straightdope.com/t/say-what-a-statute-of-limitations-on-federal-tax-liability/482425/7 "2009-01-22T18:16:59Z")
My accountant informs me that there is no statute of limitations on tax liability for the feds. Do people here have cites on the contrary? ---
**Author:** ![Gus\_Gusterson](https://avatars.discourse-cdn.com/v4/letter/g/85f322/32.png) [@Gus\_Gusterson](https://boards.straightdope.com/u/Gus_Gusterson)\ **Post date:** [January 22, 2009, 6:27pm UTC](https://boards.straightdope.com/t/say-what-a-statute-of-limitations-on-federal-tax-liability/482425/8 "2009-01-22T18:27:41Z")
> [@The\_Second\_Stone](#): > > My accountant informs me that there is no statute of limitations on tax liability for the feds. Do people here have cites on the contrary? Your accountant is wrong. Coming up with a cite directly from IRS publications is difficult, however. As far as I know, there is no single publication that fully states the statute of limitations for individual returns. Nonetheless, a simple Google search for “site:www.irs.gov statute of limitations” proves quite clearly that there is indeed a statute of limitations for individual returns. The only situation that is not subject to a statute of limitations is when a fraudulent return is filed. Edit: I just found [Publication 1035](http://www.irs.gov/pub/irs-pdf/p1035.pdf) [PDF FILE] which pretty clearly states the basic statute of limitations for individual returns on its cover. ---
**Author:** ![simster](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/simster/32/1047_2.png) [@simster](https://boards.straightdope.com/u/simster)\ **Post date:** [January 22, 2009, 7:25pm UTC](https://boards.straightdope.com/t/say-what-a-statute-of-limitations-on-federal-tax-liability/482425/9 "2009-01-22T19:25:34Z")
Side question - isnt there a SOL on how long before the IRS can decide to audit you? And if so, would that not be the effective SOL on the IRS being able to determine if you were fraudulant? ---
**Author:** ![Tom\_Tildrum](https://avatars.discourse-cdn.com/v4/letter/t/e95f7d/32.png) [@Tom\_Tildrum](https://boards.straightdope.com/u/Tom_Tildrum)\ **Post date:** [January 22, 2009, 7:35pm UTC](https://boards.straightdope.com/t/say-what-a-statute-of-limitations-on-federal-tax-liability/482425/10 "2009-01-22T19:35:03Z")
Sorry, I was confused. I think **Gus Gusterson** is right as to civil liability (i.e., paying the money owed), under IRC 6501. As to criminal liability, though, I believe that the limitations periods are 6 years for fraud, and three years for anything else. IRC 6531. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [January 22, 2009, 7:59pm UTC](https://boards.straightdope.com/t/say-what-a-statute-of-limitations-on-federal-tax-liability/482425/11 "2009-01-22T19:59:35Z")
> [@simster](#): > > Side question - isnt there a SOL on how long before the IRS can decide to audit you? And if so, would that not be the effective SOL on the IRS being able to determine if you were fraudulant? Yes, it’s the same, 3, 6 and none for normal, understatement, and fraud. But note that if the IRS doesn’t prove Fraud, they lose the $, so they rarely start an investigation when the 3 years are already up. ---
**Author:** ![suranyi](https://avatars.discourse-cdn.com/v4/letter/s/e36b37/32.png) [@suranyi](https://boards.straightdope.com/u/suranyi)\ **Post date:** [January 22, 2009, 10:28pm UTC](https://boards.straightdope.com/t/say-what-a-statute-of-limitations-on-federal-tax-liability/482425/12 "2009-01-22T22:28:02Z")
> [@DrDeth](#): > > It’s a six year SOL for Substantial Underpayment, not 7. That’s IRC @ 6501(e), which requires a excess of 25% of the amount of gross income stated in the tax return filed with the IRS. > Geithner is correct on the SOL. I stand corrected on the 6 vs. 7. Ed