26 USC 6503 - Suspension of running of period of limitation

Collapse to view only § 6503. Suspension of running of period of limitation

§ 6501. Limitations on assessment and collection
§ 6502. Collection after assessment
§ 6503. Suspension of running of period of limitation
§ 6504. Cross references

§ 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

(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 transactionsIf 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 adjustmentsIn 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 assessmentExcept 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 itemsExcept as otherwise provided in subsection (c)—

(1) Income taxesIn the case of any tax imposed by subtitle A—

(A) General ruleIf 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 incomeFor 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

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.

(2) Estate and gift taxes

(3) Excise taxes

(f) Personal holding company taxIf 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 returnIn 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).

(D) Exception for certain acquisitions of property

(m) Deficiencies attributable to election of certain credits

(n) Cross reference

(Aug. 16, 1954, ch. 736, 68A Stat. 803; Pub. L. 85–859, title I, § 165(a), Sept. 2, 1958, 72 Stat. 1313; Pub. L. 85–866, title I, §§ 80, 81, Sept. 2, 1958, 72 Stat. 1662; Pub. L. 86–69, § 3(g), June 25, 1959, 73 Stat. 140; Pub. L. 86–780, § 3(c), Sept. 14, 1960, 74 Stat. 1013; Pub. L. 87–794, title III, § 317(c), Oct. 11, 1962, 76 Stat. 890; Pub. L. 87–834, § 2(e)(1), Oct. 16, 1962, 76 Stat. 971; Pub. L. 87–858, § 3(b)(4), Oct. 23, 1962, 76 Stat. 1137; Pub. L. 88–272, title II, § 225(k)(6), Feb. 26, 1964, 78 Stat. 94; Pub. L. 88–571, § 3(b), Sept. 2, 1964, 78 Stat. 857; Pub. L. 89–44, title VIII, § 810(a), (b), June 21, 1965, 79 Stat. 169; Pub. L. 89–721, §§ 2(f), 3(a), Nov. 2, 1966, 80 Stat. 1150, 1151; Pub. L. 89–809, title I, § 105(f)(3), Nov. 13, 1966, 80 Stat. 1568; Pub. L. 90–225, § 2(c), Dec. 27, 1967, 81 Stat. 731; Pub. L. 91–172, title I, § 101(g)(1)–(3), title V, § 512(e)(1), Dec. 30, 1969, 83 Stat. 525, 639; Pub. L. 91–614, title I, § 102(d)(8), Dec. 31, 1970, 84 Stat. 1842; Pub. L. 92–178, title V, § 504(c), title VI, § 601(d)(1), (e)(2), Dec. 10, 1971, 85 Stat. 551, 558, 560; Pub. L. 93–406, title II, § 1016(a)(14), Sept. 2, 1974, 88 Stat. 930; Pub. L. 94–455, title X, §§ 1031(b)(5), 1035(d)(3), title XIII, §§ 1302(b), 1307(d)(2)(F)(vi), title XIX, § 1906(b)(13)(A), title XXI, § 2107(g)(2)(A), Oct. 4, 1976, 90 Stat. 1623, 1633, 1714, 1728, 1834, 1904; Pub. L. 95–30, title II, § 202(d)(4)(A), (5)(B), May 23, 1977, 91 Stat. 149, 151; Pub. L. 95–227, § 4(d)(4), (5), Feb. 10, 1978, 92 Stat. 23; Pub. L. 95–600, title II, § 212(a), title III, § 321(b)(2), title V, § 504(b)(3), title VII, §§ 701(t)(3)(A), 703(n), (p)(2), Nov. 6, 1978, 92 Stat. 2818, 2835, 2881, 2912, 2943, 2944; Pub. L. 95–628, § 8(c)(1), Nov. 10, 1978, 92 Stat. 3631; Pub. L. 96–222, title I, §§ 102(a)(2)(A), 103(a)(6)(G)(x), Apr. 1, 1980, 94 Stat. 208, 210; Pub. L. 96–223, title I, § 101(g)(1), Apr. 2, 1980, 94 Stat. 253; Pub. L. 97–248, title IV, § 402(c)(5), Sept. 3, 1982, 96 Stat. 667; Pub. L. 98–369, div. A, title I, §§ 131(d)(2), 163(b)(1), title II, § 211(b)(24), title III, § 314(a)(3), title IV, §§ 447(a), 474(r)(39), title VII, § 714(p)(2)(F), title VIII, § 801(d)(14), July 18, 1984, 98 Stat. 664, 697, 757, 787, 817, 846, 965, 997; Pub. L. 99–514, title XVIII, §§ 1810(g)(3), 1847(b)(12)–(14), Oct. 22, 1986, 100 Stat. 2828, 2857; Pub. L. 100–203, title X, §§ 10712(c)(2), 10714(c), Dec. 22, 1987, 101 Stat. 1330–467, 1330–471; Pub. L. 100–418, title I, § 1941(b)(2)(H), Aug. 23, 1988, 102 Stat. 1323; Pub. L. 100–647, title I, § 1008(j)(1), title IV, § 4008(c)(2), Nov. 10, 1988, 102 Stat. 3445, 3653; Pub. L. 101–239, title VII, § 7814(e)(2)(E), Dec. 19, 1989, 103 Stat. 2414; Pub. L. 101–508, title XI, §§ 11511(c)(2), 11602(b), Nov. 5, 1990, 104 Stat. 1388–485, 1388–500; Pub. L. 104–188, title I, §§ 1702(e)(3), 1703(n)(8), 1704(j)(4)(B), Aug. 20, 1996, 110 Stat. 1870, 1877, 1882; Pub. L. 105–34, title V, § 506(b), title XI, § 1145(a), title XII, §§ 1239(e)(2), 1284(a), title XVI, § 1601(g)(2), Aug. 5, 1997, 111 Stat. 855, 985, 1028, 1038, 1092; Pub. L. 105–206, title III, § 3461(b), title VI, §§ 6007(e)(2)(A), 6023(27), July 22, 1998, 112 Stat. 764, 809, 826; Pub. L. 108–357, title IV, § 413(c)(28), title VIII, § 814(a), Oct. 22, 2004, 118 Stat. 1509, 1581; Pub. L. 109–58, title XIII, §§ 1341(b)(4), 1342(b)(4), Aug. 8, 2005, 119 Stat. 1049, 1051; Pub. L. 109–135, title IV, § 403(y), Dec. 21, 2005, 119 Stat. 2629; Pub. L. 110–172, § 7(a)(2)(B), Dec. 29, 2007, 121 Stat. 2482; Pub. L. 110–343, div. B, title II, § 205(d)(3), title IV, § 402(d), Oct. 3, 2008, 122 Stat. 3839, 3854; Pub. L. 111–5, div. B, title I, §§ 1141(b)(4), 1142(b)(7), Feb. 17, 2009, 123 Stat. 328, 331; Pub. L. 111–147, title V, §§ 501(c)(2), (3), 513(a)(1), (2)(A), (b), (c), Mar. 18, 2010, 124 Stat. 106, 111, 112; Pub. L. 111–226, title II, § 218(a), Aug. 10, 2010, 124 Stat. 2403; Pub. L. 111–237, § 3(b)(2), Aug. 16, 2010, 124 Stat. 2498; Pub. L. 113–295, div. A, title II, § 221(a)(2)(E), Dec. 19, 2014, 128 Stat. 4037; Pub. L. 114–27, title IV, § 407(e), June 29, 2015, 129 Stat. 382; Pub. L. 114–41, title II, § 2005(a), July 31, 2015, 129 Stat. 456; Pub. L. 114–74, title XI, § 1101(f)(3), Nov. 2, 2015, 129 Stat. 637; Pub. L. 115–97, title I, § 13403(d)(2), Dec. 22, 2017, 131 Stat. 2137; Pub. L. 115–141, div. U, title II, §§ 201(b)(2), 205(b), title IV, § 401(a)(295), Mar. 23, 2018, 132 Stat. 1172, 1178, 1198; Pub. L. 117–169, title I, § 13401(i)(5), Aug. 16, 2022, 136 Stat. 1961; Pub. L. 117–328, div. T, title III, § 313(a), Dec. 29, 2022, 136 Stat. 5348.)

§ 6502. Collection after assessment

(a) Length of periodWhere the assessment of any tax imposed by this title has been made within the period of limitation properly applicable thereto, such tax may be collected by levy or by a proceeding in court, but only if the levy is made or the proceeding begun—

(1) within 10 years after the assessment of the tax, or

(2) if—

(A) there is an installment agreement between the taxpayer and the Secretary, prior to the date which is 90 days after the expiration of any period for collection agreed upon in writing by the Secretary and the taxpayer at the time the installment agreement was entered into; or

(B) there is a release of levy under section 6343 after such 10-year period, prior to the expiration of any period for collection agreed upon in writing by the Secretary and the taxpayer before such release.

If a timely proceeding in court for the collection of a tax is commenced, the period during which such tax may be collected by levy shall be extended and shall not expire until the liability for the tax (or a judgment against the taxpayer arising from such liability) is satisfied or becomes unenforceable.

(b) Date when levy is considered made

(Aug. 16, 1954, ch. 736, 68A Stat. 806; Pub. L. 89–719, title I, § 113(b), Nov. 2, 1966, 80 Stat. 1146; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 100–647, title I, § 1015(u)(1), Nov. 10, 1988, 102 Stat. 3573; Pub. L. 101–239, title VII, § 7811(k)(2), Dec. 19, 1989, 103 Stat. 2412; Pub. L. 101–508, title XI, § 11317(a), Nov. 5, 1990, 104 Stat. 1388–458; Pub. L. 105–206, title III, § 3461(a), July 22, 1998, 112 Stat. 764.)

§ 6503. Suspension of running of period of limitation

(a) Issuance of statutory notice of deficiency

(1) General rule

(2) Corporation joining in consolidated income tax return

(b) Assets of taxpayer in control or custody of court

(d) Extensions of time for payment of estate tax

(e) Extensions of time for payment of tax attributable to recoveries of foreign expropriation losses

(f) Wrongful seizure of or lien on property of third party

(1) Wrongful seizure

(2) Wrongful lienIn 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

(h) Cases under title 11 of the United States CodeThe 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

(j) Extension in case of certain summonses

(1) In generalIf 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 industry case 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 summonsFor purposes of this subsection—

(A) In generalThe 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 and written approval of such issuance by the Commissioner of the relevant operating division of the Internal Revenue Service and the Chief Counsel which—(I) states facts clearly establishing that the Secretary has made reasonable requests for the information that is the subject of the summons, and(II) is attached to such summons,

(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

(3) Judicial enforcement periodFor 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.

(4) Establishment that reasonable requests for information were made

(k) Cross referencesFor 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) 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).

(Aug. 16, 1954, ch. 736, 68A Stat. 806; Aug. 6, 1956, ch. 1020, § 2, 70 Stat. 1075; Pub. L. 85–866, title II, § 206(d), Sept. 2, 1958, 72 Stat. 1685; Pub. L. 89–384, § 1(e), Apr. 8, 1966, 80 Stat. 104; Pub. L. 89–719, title I, § 106, Nov. 2, 1966, 80 Stat. 1139; Pub. L. 91–172, title I, § 101(g)(4), (j)(46), Dec. 30, 1969, 83 Stat. 525, 531; Pub. L. 93–406, title II, § 1016(a)(15), Sept. 2, 1974, 88 Stat. 930; Pub. L. 94–452, § 3(b), Oct. 2, 1976, 90 Stat. 1514; Pub. L. 94–455, title XII, § 1203(h)(1), title XVI, § 1601(f)(2), title XIX, §§ 1902(b)(2)(A), 1906(b)(13)(A), title XX, § 2004(c)(4), Oct. 4, 1976, 90 Stat. 1694, 1746, 1806, 1834, 1868; Pub. L. 95–227, § 4(d)(6), Feb. 10, 1978, 92 Stat. 23; Pub. L. 95–600, title III, § 362(d)(5), Nov. 6, 1978, 92 Stat. 2852; Pub. L. 96–222, title I, § 108(b)(1)(A), Apr. 1, 1980, 94 Stat. 226; Pub. L. 96–589, § 6(a), (i)(11), Dec. 24, 1980, 94 Stat. 3407, 3411; Pub. L. 96–596, § 2(a)(4)(D), (E), Dec. 24, 1980, 94 Stat. 3472; Pub. L. 97–34, title IV, § 422(e)(7), Aug. 13, 1981, 95 Stat. 316; Pub. L. 98–369, div. A, title III, § 305(b)(4), July 18, 1984, 98 Stat. 784; Pub. L. 99–514, title XII, § 1235(d), title XVIII, § 1875(d)(2)(B)(ii), Oct. 22, 1986, 100 Stat. 2575, 2896; Pub. L. 100–203, title X, § 10712(c)(3), Dec. 22, 1987, 101 Stat. 1330–467; Pub. L. 101–508, title XI, §§ 11311(a), 11801(c)(20)(A), Nov. 5, 1990, 104 Stat. 1388–453, 1388–528; Pub. L. 104–168, title X, § 1002(a)–(c), July 30, 1996, 110 Stat. 1468; Pub. L. 104–188, title I, § 1702(h)(17), Aug. 20, 1996, 110 Stat. 1874; Pub. L. 105–34, title XII, § 1237(c)(2), Aug. 5, 1997, 111 Stat. 1026; Pub. L. 105–206, title III, § 3106(b)(3), July 22, 1998, 112 Stat. 734; Pub. L. 110–28, title VIII, § 8246(a)(2)(E), May 25, 2007, 121 Stat. 201; Pub. L. 114–74, title XI, § 1101(f)(4), Nov. 2, 2015, 129 Stat. 638; Pub. L. 115–141, div. U, title IV, § 401(a)(296), Mar. 23, 2018, 132 Stat. 1198; Pub. L. 116–25, title I, § 1207(a)–(c), July 1, 2019, 133 Stat. 990, 991.)

§ 6504. Cross references

For limitation period in case of—

(1) Adjustments to accrued foreign taxes, see section 905(c).

(2) Change of treatment with respect to itemized deductions where taxpayer and his spouse make separate returns, see section 63(e)(3).

(3) Involuntary conversion of property, see section 1033(a)(2)(C) and (D).

(4) Application by fiduciary for discharge from personal liability for estate tax, see section 2204.

(5) Insolvent banks and trust companies, see section 7507.

(6) Service in a combat zone, etc., see section 7508.

(7) Claims against transferees and fiduciaries, see chapter 71.

(8) Assessments to recover excessive amounts paid under section 6420 (relating to gasoline used on farms), 6421 (relating to gasoline used for certain nonhighway purposes or by local transit systems), or 6427 (relating to fuels not used for taxable purposes) and assessments of civil penalties under section 6675 for excessive claims under section 6420, 6421, or 6427, see section 6206.

(9) Assessment and collection of interest, see section 6601(g).

(10) Assessment of civil penalties under section 6694 or 6695, see section 6696(d)(1).

(Aug. 16, 1954, ch. 736, 68A Stat. 807; Apr. 2, 1956, ch. 160, § 4(d), 70 Stat. 91; June 29, 1956, ch. 462, title II, § 208(e)(5), 70 Stat. 397; Pub. L. 85–866, title I, § 84(b), Sept. 2, 1958, 72 Stat. 1664; Pub. L. 88–272, title I, § 112(d)(2), Feb. 26, 1964, 78 Stat. 24; Pub. L. 91–172, title II, § 213(c)(3), Dec. 30, 1969, 83 Stat. 572; Pub. L. 91–614, title I, § 101(d)(2), Dec. 31, 1970, 84 Stat. 1837; Pub. L. 93–625, § 7(d)(4), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 94–455, title XII, § 1203(h)(2), title XIX, 1901(b)(31)(D), (36)(C), (37)(D), (39)(B), 1906(a)(32), Oct. 4, 1976, 90 Stat. 1694, 1800, 1802, 1803, 1829; Pub. L. 95–30, title I, § 101(d)(16), May 23, 1977, 91 Stat. 134; Pub. L. 95–600, title IV, § 405(c)(6), title VII, § 703(j)(10), Nov. 6, 1978, 92 Stat. 2871, 2942; Pub. L. 95–618, title II, § 233(b)(2)(D), Nov. 9, 1978, 92 Stat. 3191; Pub. L. 97–248, title IV, § 402(c)(6), Sept. 3, 1982, 96 Stat. 667; Pub. L. 97–424, title V, § 515(b)(10), Jan. 6, 1983, 96 Stat. 2182; Pub. L. 99–514, title I, § 104(b)(18), Oct. 22, 1986, 100 Stat. 2106; Pub. L. 105–34, title III, § 312(d)(13), Aug. 5, 1997, 111 Stat. 840;