Internal Revenue Code Section 6501:
Limitations on assessment and collection
Location in U.S. Code: Title 26F, Chapter 66-A
Sec. 6501. Limitations on assessment and collection
(a) General rule
Except as otherwise provided in this section, the amount of any
tax imposed by this title shall be assessed within 3 years after
the return was filed (whether or not such return was filed on or
after the date prescribed) or, if the tax is payable by stamp, at
any time after such tax became due and before the expiration of 3
years after the date on which any part of such tax was paid, and no
proceeding in court without assessment for the collection of such
tax shall be begun after the expiration of such period. For
purposes of this chapter, the term ''return'' means the return
required to be filed by the taxpayer (and does not include a return
of any person from whom the taxpayer has received an item of
income, gain, loss, deduction, or credit).
(b) Time return deemed filed
(1) Early return
For purposes of this section, a return of tax imposed by this
title, except tax imposed by chapter 3, 21, or 24, filed before
the last day prescribed by law or by regulations promulgated
pursuant to law for the filing thereof, shall be considered as
filed on such last day.
(2) Return of certain employment taxes and tax imposed by chapter
3
For purposes of this section, if a return of tax imposed by
chapter 3, 21, or 24 for any period ending with or within a
calendar year is filed before April 15 of the succeeding calendar
year, such return shall be considered filed on April 15 of such
calendar year.
(3) Return executed by Secretary
Notwithstanding the provisions of paragraph (2) of section
6020(b), the execution of a return by the Secretary pursuant to
the authority conferred by such section shall not start the
running of the period of limitations on assessment and
collection.
(4) Return of excise taxes
For purposes of this section, the filing of a return for a
specified period on which an entry has been made with respect to
a tax imposed under a provision of subtitle D (including a return
on which an entry has been made showing no liability for such tax
for such period) shall constitute the filing of a return of all
amounts of such tax which, if properly paid, would be required to
be reported on such return for such period.
(c) Exceptions
(1) False return
In the case of a false or fraudulent return with the intent to
evade tax, the tax may be assessed, or a proceeding in court for
collection of such tax may be begun without assessment, at any
time.
(2) Willful attempt to evade tax
In case of a willful attempt in any manner to defeat or evade
tax imposed by this title (other than tax imposed by subtitle A
or B), the tax may be assessed, or a proceeding in court for the
collection of such tax may be begun without assessment, at any
time.
(3) No return
In the case of failure to file a return, the tax may be
assessed, or a proceeding in court for the collection of such tax
may be begun without assessment, at any time.
(4) Extension by agreement
(A) In general
Where, before the expiration of the time prescribed in this
section for the assessment of any tax imposed by this title,
except the estate tax provided in chapter 11, both the
Secretary and the taxpayer have consented in writing to its
assessment after such time, the tax may be assessed at any time
prior to the expiration of the period agreed upon. The period
so agreed upon may be extended by subsequent agreements in
writing made before the expiration of the period previously
agreed upon.
(B) Notice to taxpayer of right to refuse or limit extension
The Secretary shall notify the taxpayer of the taxpayer's
right to refuse to extend the period of limitations, or to
limit such extension to particular issues or to a particular
period of time, on each occasion when the taxpayer is requested
to provide such consent.
(5) Tax resulting from changes in certain income tax or estate
tax credits
For special rules applicable in cases where the adjustment of
certain taxes allowed as a credit against income taxes or
estate taxes results in additional tax, see section 905(c)
(relating to the foreign tax credit for income tax purposes)
and section 2016 (relating to taxes of foreign countries,
States, etc., claimed as credit against estate taxes).
(6) Termination of private foundation status
In the case of a tax on termination of private foundation
status under section 507, such tax may be assessed, or a
proceeding in court for the collection of such tax may be begun
without assessment, at any time.
(7) Special rule for certain amended returns
Where, within the 60-day period ending on the day on which the
time prescribed in this section for the assessment of any tax
imposed by subtitle A for any taxable year would otherwise
expire, the Secretary receives a written document signed by the
taxpayer showing that the taxpayer owes an additional amount of
such tax for such taxable year, the period for the assessment of
such additional amount shall not expire before the day 60 days
after the day on which the Secretary receives such document.
(8) Failure to notify Secretary of certain foreign transfers
In the case of any information which is required to be reported
to the Secretary under section 6038, 6038A, 6038B, 6046, 6046A,
or 6048, the time for assessment of any tax imposed by this title
with respect to any event or period to which such information
relates shall not expire before the date which is 3 years after
the date on which the Secretary is furnished the information
required to be reported under such section.
(9) Gift tax on certain gifts not shown on return
If any gift of property the value of which (or any increase in
taxable gifts required under section 2701(d) which) is required
to be shown on a return of tax imposed by chapter 12 (without
regard to section 2503(b)), and is not shown on such return, any
tax imposed by chapter 12 on such gift may be assessed, or a
proceeding in court for the collection of such tax may be begun
without assessment, at any time. The preceding sentence shall
not apply to any item which is disclosed in such return, or in a
statement attached to the return, in a manner adequate to apprise
the Secretary of the nature of such item.
(10) Listed transactions.--If a taxpayer fails to include
on any return or statement for any taxable year any information
with respect to a listed transaction (as defined in section
6707A(c)(2)) which is required under section 6011 to be included
with such return or statement, the time for assessment of any
tax imposed by this title with respect to such transaction shall
not expire before the date which is 1 year after the earlier
of--
(A) the date on which the Secretary is furnished
the information so required, or
(B) the date that a material advisor (as defined
in section 6111) meets the requirements of section 6112
with respect to a request by the Secretary under section
6112(b) relating to such transaction with respect to
such taxpayer.
(d) Request for prompt assessment
Except as otherwise provided in subsection (c), (e), or (f), in
the case of any tax (other than the tax imposed by chapter 11 of
subtitle B, relating to estate taxes) for which return is required
in the case of a decedent, or by his estate during the period of
administration, or by a corporation, the tax shall be assessed, and
any proceeding in court without assessment for the collection of
such tax shall be begun, within 18 months after written request
therefor (filed after the return is made and filed in such manner
and such form as may be prescribed by regulations of the Secretary)
by the executor, administrator, or other fiduciary representing the
estate of such decedent, or by the corporation, but not after the
expiration of 3 years after the return was filed. This subsection
shall not apply in the case of a corporation unless -
(1)(A) such written request notifies the Secretary that the
corporation contemplates dissolution at or before the expiration
of such 18-month period, (B) the dissolution is in good faith
begun before the expiration of such 18-month period, and (C) the
dissolution is completed;
(2)(A) such written request notifies the Secretary that a
dissolution has in good faith been begun, and (B) the dissolution
is completed; or
(3) a dissolution has been completed at the time such written
request is made.
(e) Substantial omission of items
Except as otherwise provided in subsection (c) -
(1) Income taxes
In the case of any tax imposed by subtitle A -
(A) General rule
If the taxpayer omits from gross income an amount properly
includible therein which is in excess of 25 percent of the
amount of gross income stated in the return, the tax may be
assessed, or a proceeding in court for the collection of such
tax may be begun without assessment, at any time within 6 years
after the return was filed. For purposes of this subparagraph
-
(i) In the case of a trade or business, the term ''gross
income'' means the total of the amounts received or accrued
from the sale of goods or services (if such amounts are
required to be shown on the return) prior to diminution by
the cost of such sales or services; and
(ii) In determining the amount omitted from gross income,
there shall not be taken into account any amount which is
omitted from gross income stated in the return if such amount
is disclosed in the return, or in a statement attached to the
return, in a manner adequate to apprise the Secretary of the
nature and amount of such item.
(B) Constructive dividends.--If the taxpayer omits
from gross income an amount properly includible therein
under section 951(a), the tax may be assessed, or a
proceeding in court for the collection of such tax may
be done without assessing, at any time within 6 years
after the return was filed.
(2) Estate and gift taxes
In the case of a return of estate tax under chapter 11 or a
return of gift tax under chapter 12, if the taxpayer omits from
the gross estate or from the total amount of the gifts made
during the period for which the return was filed items includible
in such gross estate or such total gifts, as the case may be, as
exceed in amount 25 percent of the gross estate stated in the
return or the total amount of gifts stated in the return, the tax
may be assessed, or a proceeding in court for the collection of
such tax may be begun without assessment, at any time within 6
years after the return was filed. In determining the items
omitted from the gross estate or the total gifts, there shall not
be taken into account any item which is omitted from the gross
estate or from the total gifts stated in the return if such item
is disclosed in the return, or in a statement attached to the
return, in a manner adequate to apprise the Secretary of the
nature and amount of such item.
(3) Excise taxes
In the case of a return of a tax imposed under a provision of
subtitle D, if the return omits an amount of such tax properly
includible thereon which exceeds 25 percent of the amount of such
tax reported thereon, the tax may be assessed, or a proceeding in
court for the collection of such tax may be begun without
assessment, at any time within 6 years after the return is
filed. In determining the amount of tax omitted on a return,
there shall not be taken into account any amount of tax imposed
by chapter 41, 42, 43, or 44 which is omitted from the return if
the transaction giving rise to such tax is disclosed in the
return, or in a statement attached to the return, in a manner
adequate to apprise the Secretary of the existence and nature of
such item.
(f) Personal holding company tax
If a corporation which is a personal holding company for any
taxable year fails to file with its return under chapter 1 for such
year a schedule setting forth -
(1) the items of gross income and adjusted ordinary gross
income, described in section 543, received by the corporation
during such year, and
(2) the names and addresses of the individuals who owned,
within the meaning of section 544 (relating to rules for
determining stock ownership), at any time during the last half of
such year more than 50 percent in value of the outstanding
capital stock of the corporation,
the personal holding company tax for such year may be assessed, or
a proceeding in court for the collection of such tax may be begun
without assessment, at any time within 6 years after the return for
such year was filed.
(g) Certain income tax returns of corporations
(1) Trusts or partnerships
If a taxpayer determines in good faith that it is a trust or
partnership and files a return as such under subtitle A, and if
such taxpayer is thereafter held to be a corporation for the
taxable year for which the return is filed, such return shall be
deemed the return of the corporation for purposes of this
section.
(2) Exempt organizations
If a taxpayer determines in good faith that it is an exempt
organization and files a return as such under section 6033, and
if such taxpayer is thereafter held to be a taxable organization
for the taxable year for which the return is filed, such return
shall be deemed the return of the organization for purposes of
this section.
(3) DISC
If a corporation determines in good faith that it is a DISC (as
defined in section 992(a)) and files a return as such under
section 6011(c)(2) and if such corporation is thereafter held to
be a corporation which is not a DISC for the taxable year for
which the return is filed, such return shall be deemed the return
of a corporation which is not a DISC for purposes of this
section.
(h) Net operating loss or capital loss carrybacks
In the case of a deficiency attributable to the application to
the taxpayer of a net operating loss carryback or a capital loss
carryback (including deficiencies which may be assessed pursuant to
the provisions of section 6213(b)(3)), such deficiency may be
assessed at any time before the expiration of the period within
which a deficiency for the taxable year of the net operating loss
or net capital loss which results in such carryback may be
assessed.
(i) Foreign tax carrybacks
In the case of a deficiency attributable to the application to
the taxpayer of a carryback under section 904(c) (relating to
carryback and carryover of excess foreign taxes) or under section
907(f) (relating to carryback and carryover of disallowed oil and
gas extraction taxes), such deficiency may be assessed at any time
before the expiration of one year after the expiration of the
period within which a deficiency may be assessed for the taxable
year of the excess taxes described in section 904(c) or 907(f)
which result in such carryback.
(j) Certain credit carrybacks
(1) In general
In the case of a deficiency attributable to the application to
the taxpayer of a credit carryback (including deficiencies which
may be assessed pursuant to the provisions of section
6213(b)(3)), such deficiency may be assessed at any time before
the expiration of the period within which a deficiency for the
taxable year of the unused credit which results in such carryback
may be assessed, or with respect to any portion of a credit
carryback from a taxable year attributable to a net operating
loss carryback, capital loss carryback, or other credit carryback
from a subsequent taxable year, at any time before the expiration
of the period within which a deficiency for such subsequent
taxable year may be assessed.
(2) Credit carryback defined
For purposes of this subsection, the term ''credit carryback''
has the meaning given such term by section 6511(d)(4)(C).
(k) Tentative carryback adjustment assessment period
In a case where an amount has been applied, credited, or refunded
under section 6411 (relating to tentative carryback and refund
adjustments) by reason of a net operating loss carryback, a capital
loss carryback, or a credit carryback (as defined in section
6511(d)(4)(C)) to a prior taxable year, the period described in
subsection (a) of this section for assessing a deficiency for such
prior taxable year shall be extended to include the period
described in subsection (h) or (j), whichever is applicable; except
that the amount which may be assessed solely by reason of this
subsection shall not exceed the amount so applied, credited, or
refunded under section 6411, reduced by any amount which may be
assessed solely by reason of subsection (h) or (j), as the case may
be.
(l) Special rule for chapter 42 and similar taxes
(1) In general
For purposes of any tax imposed by section 4912, by chapter 42
(other than section 4940), or by section 4975, the return
referred to in this section shall be the return filed by the
private foundation, plan, trust, or other organization (as the
case may be) for the year in which the act (or failure to act)
giving rise to liability for such tax occurred. For purposes of
section 4940, such return is the return filed by the private
foundation for the taxable year for which the tax is imposed.
(2) Certain contributions to section 501(c)(3) organizations
In the case of a deficiency of tax of a private foundation
making a contribution in the manner provided in section
4942(g)(3) (relating to certain contributions to section
501(c)(3) organizations) attributable to the failure of a section
501(c)(3) organization to make the distribution prescribed by
section 4942(g)(3), such deficiency may be assessed at any time
before the expiration of one year after the expiration of the
period within which a deficiency may be assessed for the taxable
year with respect to which the contribution was made.
(3) Certain set-asides described in section 4942(g)(2)
In the case of a deficiency attributable to the failure of an
amount set aside by a private foundation for a specific project
to be treated as a qualifying distribution under the provisions
of section 4942(g)(2)(B)(ii), such deficiency may be assessed at
any time before the expiration of 2 years after the expiration of
the period within which a deficiency may be assessed for the
taxable year to which the amount set aside relates.
(m) Deficiencies attributable to election of certain credits
The period for assessing a deficiency attributable to any
election under section 30(d)(4), 30B(h)(9), 30C(e)(5), 30B(f)
(5), 40(f), 43, 45B, 45C(d)(4),or 51(j) (or any revocation
thereof) shall not expire before the date 1 year after the date
on which the Secretary is notified of such election (or
revocation).
(n) Cross references
(1) For period of limitations for assessment and collection
in the case of a joint income return filed after separate
returns have been filed, see section 6013(b)(3) and (4).
(2) For extension of period in the case of partnership items
(as defined in section 6231(a)(3)), see section 6229.
(3) For declaratory judgment relating to treatment of items
other than partnership items with respect to an oversheltered
return, see section 6234.