Question

Individual Y files a fraudulent 20X1 tax return on April 15,20X2, but on June 15,20X2 he files an amended return correctly reporting his tax. On July, 20X8, Y is charged with tax fraud on his 20X1 return. Is the allegation of either civil or criminal fraud barred by the statue of limitations?

Answer 1

Yes, the fraud is barred by the statue of limitations. In this question initially Y files a fraud return showing less tax, and after Y files the revised return showing his full tax.

Thus Y's intention may be to pay less tax or want to hold the actual tax for certain time because of inadequate money.

Later Y charged with a tax on 20X8,this is because there is no valid supporting documents to prove the defuat return.

Misstatement of income details is a type of fraud. The statue of limitations won't allow such kind of practices.