The following is an excerpt from:
"For Whom the Tax Tolls: Significant Events That Extend IRS Collection Rights"
Published in Tax Practice & Procedure - October/November 2004
By Michael S. Fried and Zachary S. Fried
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Application to 1997 Tax Liability
After reviewing CCA 200404049, we concluded that the three-year look-back and two-year filing periods related to our client's 1997 tax liability were not subject to any tolling period during the pendency of the offer in compromise, and that these periods had expired. Therefore, it was our judgment that this liability is eligible for discharge in a bankruptcy case. We conveyed this opinion to our client with the caveat that the law on the issue is not settled, and that a risk remains that the IRS or the courts could reach an opposite conclusion in the future.
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- Introduction
- Statute of Limitation on Collection
- Discharge of Taxes in Bankruptcy
- Hypothetical Client
- Collection Statute Expiration
- Bankruptcy Solutions and Tolling Issues
- 1998, 1999 and 2000 Tax Liabilities
- 1997 Tax Liability
- Two Hundred and Forty Day Assessment Period
- Application of Three-Year Look Back Rule and Two-Year Filing Rule to 1997 Tax
- LTR 200404049
- Application to 1997 Tax Liability
- 1987 to 1996 Tax Liabilities
- Conclusion
- Endnotes & Sources