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3 Year Statute of Limitations Applies to IRS Assesments based on Mistatement of Basis

The statute of limitations on IRS assessment of taxpayers is normally 3 years, but the law provides a 6 years statute of limitations where the taxpayer has understated gross income by more than 25%.   In United States v. Home Concreate & Supply, LLC, the IRS argued that where property basis is overtated, it is tantamount to an understatement of income, and, therefore, the 6 year statute of limitations applied.  The Supreme Court found otherwise, holding the 3 year statute of limitations rather than the 6 year statute of limitations applied where the taxpayer overstated it’s original cost basis on the return.    Below is a link to the case.


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  • Joe Nagel

    Joe joined Hoffman & Associates in 2000 and became a partner in 2007. He is licensed to practice law in Georgia, Florida, North Carolina, and Ohio and is also a Certified Public Accountant. Joe serves clients in the areas of estate planning, corporate law, employment law, mergers and acquisitions, succession planning, income and estate tax planning, and tax controversy.

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