Many people who regularly use tax services and file for their taxes are still unaware of their rights when it comes to tax returns. A lot of people perceive that the IRS proceeding can trap them for life if they get involved in certain proceedings. However, it is important to understand, in order to have tax problems help, that there are certain limitations in terms of time that are applicable to several tax-related actions that the IRS can take. According to the tax laws, there is a statute of limitations applicable to certain actions that the IRS can take including settlement of claims of tax refunds, allowing tax return audits and collecting tax debts.

Tax Problems Help – Limitations on Tax Refund Claims

From the day the original deadline for filing your tax returns comes to a close, you have exactly three years to claim the tax refunds you are eligible for. If you file for your taxes between these three years, even if it is done after the deadline has passed, you can still get all the necessary tax refunds. Also, if you feel the need to make amends in your tax filings that can get you additional refunds, it has to be done within the three year period as well.

However, if you file taxes for a particular year later than the 3 year period, you won’t get any tax refunds on these tax returns since the refund period has expired. The period of claiming refunds can be extended by filing for extension, providing you with an extended deadline.

Tax Problems Help – Limitations on Tax Audits

The IRS only has the authority to initiate a tax audit for a specific time period, usually three years from the day of filing the tax returns. However, this period to initiate audits vary state-wise, which you can learn about using IRS tax audit help material, going as long as 5 years in Montana. On average, the period is three years in a large number of states. Once the deadline has passed, the IRS cannot start audit procedures on your claims made earlier.
Tax audits are usually initiated when a large deviation is found between the tax deductions you filed and the average deductions filed by people having a similar profile. You can take IRS tax audit help to learn how to minimize this deviation. Unlike the tax refund period, the time frame for this statute starts from the exact day you have filed your taxes, even if it is done before the deadline of filing tax returns.

Tax Problems Help – Limitations for Collecting Tax Debts

In case you file your taxes on time but you are unable to pay them at that time, you will owe money to the IRS as you can learn from the tax debt help section. Also, if an assessment is made after the tax audit, or a proposed assessment is made final, it will be a liability for you until it is paid off. In any such cases where you have financial liabilities towards the IRS, you are under an obligation to pay it back until a time period of ten years.
The period starts from the exact day the liability is finalized.

Any outstanding debt of yours that the IRS does not collect within ten years will become invalid and you will not be under any obligation to pay it back. No matter how much debt and associated penalties and interest is remaining, once the deadline has passed, it cannot be claimed by the IRS. You can take professional tax debt help from accountants.

If you need more information about our accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.

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