What is the Statute of Limitations?

After you file your taxes, you’ll have many records that may help document items on your tax return. You’ll need these documents should the IRS select your return for examination. Generally, this means you must keep records that support items shown on your return until the statute of limitations for that return runs out.


The statute of limitations is the period of time in which you can amend your return to claim a credit or refund or the IRS can assess additional tax. Returns filed before the due date are treated as being filed on the due date.

IF you… THEN the period is…
1) Owe additional tax and (2), (3), and (4) do not apply to you 3 years
2) Don’t report income that you should and it’s more than 25% of the corrected gross income shown on your return 6 years
3) File a fraudulent return No limit
4) Don’t file a return No limit
5) File a claim for credit or refund after you filed your return The later of 3 years or 2 years after tax was paid.
6) File a claim for a loss from worthless securities 7 years

For more information, contact Padgett Business Services in Bothell, Washington at (425) 408-1695. We handle your accounting, tax (personal & business) and payroll needs – so you can focus on what makes you money. Serving Bothell, Lynnwood, Kenmore, Mill Creek and surrounding areas.

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