26 USC 6501 - Limitations on assessment and collection

U.S Code last checked for updates: Apr 28, 2024

§ 6501.

Limitations on assessment and collection

(a)

General rule

(b)

Time return deemed filed

(1)

Early return

(2)

Return of certain employment and withholding taxes

(3)

Return executed by Secretary

(4)

Return of excise taxes

(c)

Exceptions

(1)

False return

(2)

Willful attempt to evade tax

(3)

No return

(4)

Extension by agreement

(A)

In general

(B)

Notice to taxpayer of right to refuse or limit extension

(5)

Tax resulting from changes in certain income tax or estate tax credits

(6)

Termination of private foundation status

(7)

Special rule for certain amended returns

(8)

Failure to notify Secretary of certain foreign transfers

(A)

In general

(B)

Application to failures due to reasonable cause

(9)

Gift tax on certain gifts not shown on return

(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 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.

(11)

Certain orders of criminal restitution

(12)

Certain taxes attributable to partnership adjustments

In the case of any partnership adjustment determined under subchapter C of chapter 63, the period for assessment of any tax imposed under chapter 2 or 2A which is attributable to such adjustment shall not expire before the date that is 1 year after—

(A)

in the case of an adjustment pursuant to the decision of a court in a proceeding brought under section 6234, such decision becomes final, or

(B)

in any other case, 90 days after the date on which the notice of the final partnership adjustment is mailed under section 6231.

(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 and—

(i)

such amount is in excess of 25 percent of the amount of gross income stated in the return, or

(ii)

such amount—

(I)

is attributable to one or more assets with respect to which information is required to be reported under section 6038D (or would be so required if such section were applied without regard to the dollar threshold specified in subsection (a) thereof and without regard to any exceptions provided pursuant to subsection (h)(1) thereof), and

(II)

is in excess of $5,000,

the tax may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, at any time within 6 years after the return was filed.

(B)

Determination of gross income

For purposes of subparagraph (A)—

(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;

(ii)

An understatement of gross income by reason of an overstatement of unrecovered cost or other basis is an omission from gross income; and

(iii)

In determining the amount omitted from gross income (other than in the case of an overstatement of unrecovered cost or other basis), 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.

(C)

Constructive dividends

(2)

Estate and gift taxes

(3)

Excise taxes

(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

(2)

Exempt organizations

(3)

DISC

(h)

Net operating loss or capital loss carrybacks

(i)

Foreign tax carrybacks

(j)

Certain credit carrybacks

(1)

In general

(2)

Credit carryback defined

(k)

Tentative carryback adjustment assessment period

(l)

Special rule for chapter 42 and similar taxes

(1)

In general

(2)

Certain contributions to section 501(c)(3) organizations

(3)

Certain set-asides described in section 4942(g)(2)

(4)

Individual retirement plans

(A)

In general

(B)

Rule in case of individuals not required to file return

In the case of a person who is not required to file an income tax return for such year—

(i)

the return referred to in this section shall be the income tax return that such person would have been required to file but for the fact that such person was not required to file such return, and

(ii)

the 3-year period referred to in subsection (a) with respect to the return shall be deemed to begin on the date by which the return would have been required to be filed (excluding any extension thereof).

(C)

Period for assessment in case of income tax return

(D)

Exception for certain acquisitions of property

(m)

Deficiencies attributable to election of certain credits

(n)

Cross reference

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cite as: 26 USC 6501