of tax fraud involved. In the United States, the Internal Revenue Service (IRS) generally has three years to audit and assess additional taxes. However, there are some exceptions where the statute of limitations is extended:
Substantial understatement of income: If a taxpayer has understated their income by more than 25%, the statute of limitations increases to six years.
Fraudulent tax return or willful attempt to evade taxes: If a taxpayer is found to have filed a fraudulent return or willfully attempted to evade taxes, there is no statute of limitations, meaning the IRS can pursue the case at any time.
Failure to file a tax return: If a taxpayer does not file a tax return, the IRS can assess taxes and penalties indefinitely, as the statute of limitations never begins.
In general, the statute of limitations for criminal tax fraud is longer than for civil tax fraud. In the United States, criminal tax fraud usually has a statute of limitations of six years. However, in some cases, as mentioned above, there may be no statute of limitations.
26 U.S. Code 6501 (Internal Revenue Code) - This section covers the statute of limitations on assessment and collection. www.law.cornell.edu
6 U.S. Code 6531 (Internal Revenue Code) - This section covers the statute of limitations for criminal offenses related to taxes. www.law.cornell.edu
IRS Publication 1035 (Internal Revenue Service) - This publication provides an overview of the statutes of limitations for assessment and collection. https://www.irs.gov/pub/irs-pdf/p1035.pdf
