Fraud is always something the IRS can pursue.
Evan A. Nielsen is licensed to practice law in California and handles federal tax matters throughout the U.S. The information provided here is for educational purposes only and is not intended as legal advice for a particular matter. This response does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult an attorney.
The statute of limitations for the IRS to "assess" a tax against a taxpayer is three years from the due date of the return or the date the return is filed (whichever is later). The IRS has six years to assess a tax against a taxpayer if there is a 25% omission of income. The statute of limitations does not begin to run if a taxpayer does not file a return or if there is fraud associated with the return, which means the IRS has forever to assess the tax.
This material does not constitute tax, legal or accounting advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS or NYS penalty. The information contained herein is for informational purposes only as a service to the public, and is not legal advice or a substitute for legal counsel, nor does it constitute advertising or a solicitation. This response is not intended to create, and does not create, an attorney-client relationship between you and the author.
No time limit on charging i.e. criminal liability, re unreported income. Civil liability has limits.
Of course, every answer is based on the question asked and requires a more complete context. This answer should not be relied upon to make a legal decision. Seek the advice of an experienced criminal defense attorney before acting. Law Offices of Raymond G. Wigell, Ltd. Defenders of the Constitution since 1975/ Aggressive Creative Defense Strategies/ Website: www.waaltd.com 24/7 call (708) 481-4800 text (708)218-0923
If you are talking about a plea and the factual basis for the underlying prosecution, this may or may not have any implication upon sentencing outside of the SOL. Now this certainly goes to sentencing factors for relevant conduct. There is a lot of depth to your question.
The general statute of limitations for criminal purposes is six years for federal tax crimes. State laws vary. For civil purposes there is no statute of limitations if the IRS can establish fraud. If there is a criminal conviction for tax evasion the IRS can use the conviction as "collateral estoppel" as to the fraud on the civil side. The taxpayer can still dispute the civil numbers after a conviction but he or she will be unable to contest the fraud element and that means the statute of limitations for assessing the liability is open.
The IRS generally has 3 years to assess taxes from the later of when the return is filed or when the tax return is due. If no return if filed, there is no statute of limitations. If a return is filed and there is a substantial understatement of income, the IRS has 6 years to assess taxes from the later of when the return is filed or when the tax return is due.