What is the Statute of Limnitations

What is the Statute of Limitations?

Below is the definition of the Statute of Limitations as well as information concerning the statute of limitations.

What is the definition of the statute of limitation?

A statute of limitations is a provision in the tax law that offers a party a defense against a law suit brought by another party after the expiration of a specified period of time.

 

What is the purpose of the statute of limitations?

The purpose of the statute of limitation is to preclude parties from prosecuting stale claims. The passage of time makes the defense of claims in the past difficult since witnesses may no longer be available or evidence may have been lost of destroyed.

 

What is the extent of the statute of limitations?

The statute of limitation is found at the state and Federal levels and cover a wide range of suits both civil and criminal.

 

What is the statute of limitations on federal income tax?

The statute of limitations that deals with federal income tax covers:

1. The period of limitations applicable to the assessment of additional tax deficiencies by the IRS, and 
2. The period that deals with claims for refunds by taxpayers.