Question

Name and describe three categories of exceptions to the thrre-year general rulf for the statute of limitations on assessment.

Answer 1

Following are the three categories of exceptions to the three year general rule for the statute of limitations on assessment:-

a) False return

In the case of a false or fraudulent return with intent to evade any tax, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without any assessment, at any time after such false or fraudulent return is filed.

b) No return

In the case of a failure to file a return, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without any assessment, at any time after the date prescribed for filing the return.

c) Fraudulent attempt to evade tax

In the case of a willful attempt in any manner to defeat or evade any tax imposed by the Code the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time.