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10 Cards in this Set
- Front
- Back
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Statue of limitations- substantial omission of income >25% |
6 years May include understatement of basis for capital transactions |
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Statue of Limitations- Fraud & collection of deficiency by IRS |
Fraud- None Deficiency- 10 years |
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Statue of limitations- Refund claim by Taxpayer |
3 years from date return is filed or 2 years from date of payment (whichever is later) |
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Statue of limitations- collection of Erroneous refund by IRS |
2 years, 5 years if induced by fraud |
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Failure to File penalty |
5% per month or part thereof If Fraud- 15%/month Max of 25% (5months) If Fraud, 75% If 60 days late, minimum $485 (2023) or 100% of tax due
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Failure to pay penalty |
.5% per month or part thereof Max 25% (50 months) |
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US Tax Court |
• No payment of tax is necessary • Trial by jury not available • Small Tax Case Division: Deficiencies up to $50,000 taxpayer's request • Informal procedures; no appeal rights Tax Court decisions do not bind the IRS with rest taxpayers. • Appeals are to the U.S. Court of Appeals. |
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The US District Court |
• Tax deficiency must be paid in advance • Only forum that allows a jury trial • Bound by decisions of: • its Appeals Court, and •the U.S. Supreme Court |
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US Court of Federal Claims |
Sits only in Washington, DC Tax deficiencies must be paid to proceed in this forum Appeal is to the U.S. Court of Appeals for the Federal Circuit |
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US Supreme Court |
• Decisions are binding on taxpayers and the IRS. Reviews tax cases if: • There is a conflict between the circuit courts. An important and recurring problem in tax law administration is involved. Many taxpayers are involved. The decision of a lower court conflicts with long-standing practice or the regulations. |
