Question

The statute of limitations on assessments remains open indefinitely when there is a federal audit change and the taxpayer files an amended NY return to report such change.

True or false?

Answer 1

True

Statute of Limitations is open for one more year when amendment is made from the date of amendment return but this exclusion is not available if amendment is due to federal audit change .

If amendment in NY return is due to federal audit change there is extension to Statute of limitations and the time limit is not specifically mentioned

Generally there is a 3 year statute of limitations and 6 year in case if tax payer has avoided more than 25% of Income from disclosing.

There is a 2 year time from amended return (due to federal changes)to claim refund  and the time to audit the adjusted liability (tax due)if any cannot exceed the time to claim refund.

According to federal policy Statute of Limitations should remain open for federal Tax changes and there is no specific time limit and states should waive off statute of limitations that arises only due to federal changes