Internal Revenue Code Section 6503:
Suspension of running of period of limitation
Location in U.S. Code: Title 26F, Chapter 66-A
Sec. 6503. Suspension of running of period of limitation
(a) Issuance of statutory notice of deficiency
(1) General rule
The running of the period of limitations provided in section
6501 or 6502 (or section 6229, but only with respect to a
deficiency described in paragraph (2)(A) or (3) of section
6230(a)). (FOOTNOTE 1) on the making of assessments or the
collection by levy or a proceeding in court, in respect of any
deficiency as defined in section 6211 (relating to income,
estate, gift and certain excise taxes), shall (after the mailing
of a notice under section 6212(a)) be suspended for the period
during which the Secretary is prohibited from making the
assessment or from collecting by levy or a proceeding in court
(and in any event, if a proceeding in respect of the deficiency
is placed on the docket of the Tax Court, until the decision of
the Tax Court becomes final), and for 60 days thereafter.
(FOOTNOTE 1) So in original.
(2) Corporation joining in consolidated income tax return
If a notice under section 6212(a) in respect of a deficiency in
tax imposed by subtitle A for any taxable year is mailed to a
corporation, the suspension of the running of the period of
limitations provided in paragraph (1) of this subsection shall
apply in the case of corporations with which such corporation
made a consolidated income tax return for such taxable year.
(b) Assets of taxpayer in control or custody of court
The period of limitations on collection after assessment
prescribed in section 6502 shall be suspended for the period the
assets of the taxpayer are in the control or custody of the court
in any proceeding before any court of the United States or of any
State or of the District of Columbia, and for 6 months thereafter.
(c) Taxpayer outside United States
The running of the period of limitations on collection after
assessment prescribed in section 6502 shall be suspended for the
period during which the taxpayer is outside the United States if
such period of absence is for a continuous period of at least 6
months. If the preceding sentence applies and at the time of the
taxpayer's return to the United States the period of limitations on
collection after assessment prescribed in section 6502 would expire
before the expiration of 6 months from the date of his return, such
period shall not expire before the expiration of such 6 months.
(d) Extensions of time for payment of estate tax
The running of the period of limitation for collection of any tax
imposed by chapter 11 shall be suspended for the period of any
extension of time for payment granted under the provisions of
section 6161(a)(2) or (b)(2) or under the provisions of section
6163 or 6166.
(e) Extensions of time for payment of tax attributable to
recoveries of foreign expropriation losses
The running of the period of limitations for collection of the
tax attributable to a recovery of a foreign expropriation loss
(within the meaning of section 6167(f)) shall be suspended for the
period of any extension of time for payment under subsection (a) or
(b) of section 6167.
(f) Wrongful seizure of or lien on property of third party
(1) Wrongful seizure
The running of the period under section 6502 shall be suspended
for a period equal to the period from the date property
(including money) of a third party is wrongfully seized or
received by the Secretary to the date the Secretary returns
property pursuant to section 6343(b) or the date on which a
judgment secured pursuant to section 7426 with respect to such
property becomes final, and for 30 days thereafter. The running
of such period shall be suspended under this paragraph only with
respect to the amount of such assessment equal to the amount of
money or the value of specific property returned.
(2) Wrongful lien
In the case of any assessment for which a lien was made on any
property, the running of the period under section 6502 shall be
suspended for a period equal to the period beginning on the date
any person becomes entitled to a certificate under section
6325(b)(4) with respect to such property and ending on the date
which is 30 days after the earlier of -
(A) the earliest date on which the Secretary no longer holds
any amount as a deposit or bond provided under section
6325(b)(4) by reason of such deposit or bond being used to
satisfy the unpaid tax or being refunded or released; or
(B) the date that the judgment secured under section
7426(b)(5) becomes final.
The running of such period shall be suspended under this
paragraph only with respect to the amount of such assessment
equal to the value of the interest of the United States in the
property plus interest, penalties, additions to the tax, and
additional amounts attributable thereto.
(g) Suspension pending correction
The running of the periods of limitations provided in sections
6501 and 6502 on the making of assessments or the collection by
levy or a proceeding in court in respect of any tax imposed by
chapter 42 or section 507, 4971, or 4975 shall be suspended for any
period described in section 507(g)(2) or during which the Secretary
has extended the time for making correction under section 4963(e).
(h) Cases under title 11 of the United States Code
The running of the period of limitations provided in section 6501
or 6502 on the making of assessments or collection shall, in a case
under title 11 of the United States Code, be suspended for the
period during which the Secretary is prohibited by reason of such
case from making the assessment or from collecting and -
(1) for assessment, 60 days thereafter, and
(2) for collection, 6 months thereafter.
(i) Extension of time for payment of undistributed PFIC earnings
tax liability
The running of any period of limitations for collection of any
amount of undistributed PFIC earnings tax liability (as defined in
section 1294(b)) shall be suspended for the period of any extension
of time under section 1294 for payment of such amount.
(j) Extension in case of certain summonses
(1) In general
If any designated summons is issued by the Secretary to a
corporation (or to any other person to whom the corporation has
transferred records) with respect to any return of tax by such
corporation for a taxable year (or other period) for which such
corporation is being examined under the coordinated examination
program (or any successor program) of the Internal Revenue
Service, the running of any period of limitations provided in
section 6501 on the assessment of such tax shall be suspended -
(A) during any judicial enforcement period -
(i) with respect to such summons, or
(ii) with respect to any other summons which is issued
during the 30-day period which begins on the date on which
such designated summons is issued and which relates to the
same return as such designated summons, and
(B) if the court in any proceeding referred to in paragraph
(3) requires any compliance with a summons referred to in
subparagraph (A), during the 120-day period beginning with the
1st day after the close of the suspension under subparagraph
(A).
If subparagraph (B) does not apply, such period shall in no event
expire before the 60th day after the close of the suspension
under subparagraph (A).
(2) Designated summons
For purposes of this subsection -
(A) In general
The term ''designated summons'' means any summons issued for
purposes of determining the amount of any tax imposed by this
title if -
(i) the issuance of such summons is preceded by a review of
such issuance by the regional counsel of the Office of Chief
Counsel for the region in which the examination of the
corporation is being conducted,
(ii) such summons is issued at least 60 days before the day
on which the period prescribed in section 6501 for the
assessment of such tax expires (determined with regard to
extensions), and
(iii) such summons clearly states that it is a designated
summons for purposes of this subsection.
(B) Limitation
A summons which relates to any return shall not be treated as
a designated summons if a prior summons which relates to such
return was treated as a designated summons for purposes of this
subsection.
(3) Judicial enforcement period
For purposes of this subsection, the term ''judicial
enforcement period'' means, with respect to any summons, the
period -
(A) which begins on the day on which a court proceeding with
respect to such summons is brought, and
(B) which ends on the day on which there is a final
resolution as to the summoned person's response to such
summons.
(k) Cross references
For suspension in case of -
(1) Deficiency dividends of a personal holding company, see
section 547(f).
(2) Receiverships, see subchapter B of chapter 70.
(3) Claims against transferees and fiduciaries, see chapter
71.
(4) Income tax return preparers, see section 6694(c)(3).
(5) Deficiency dividends in the case of a regulated
investment company or a real estate investment trust, see
section 860(h).