taxnoob wrote:Only IRS has 6 year SOL rule.
CA does not have SOL and can assess as far back as 10-15 years.
I would suggest only prep past 6 years for IRS. Go beyond if it is SFR'd.
For CA, prep what they are looking for and assessing past the 6 years. Taxpayer may have to go to SSA to obtain info. FTB Hotline may give it but depends on the agent.
The IRS does not have a 6 year Statute of Limitation rule. It has nothing to do with a Statute of Limitation. It is a Policy Statement and nothing more. IRS can, at their whim, change that tomorrow.
4.12.1.3 (10-05-2010)
Enforcement Period
Policy Statement 5-133 (P-5-133), IRM 1.2.14.1.18, Delinquent returns—enforcement of filing requirements, discusses delinquent returns and the enforcement filing requirements. The enforcement period is not to be more than six years. However, the extent to which delinquency procedures will be enforced will depend upon the facts and circumstances of each case, and by reference to factors ensuring evenhanded administration of staffing and other Service resources. Enforcement for longer or shorter periods may be used when consideration has been given to:
The taxpayer’s prior history of noncompliance.
The existence of income from illegal sources.
The effect upon voluntary compliance.
The anticipated revenue in relation to the time and effort, required to determine tax due.
Any special circumstances existing in the case of a particular taxpayer, class of taxpayer, or industry, or which may be peculiar to the class of tax involved.
I also disagree with your statement concerning the FTB going back 10-15 years on unfiled returns. In 32 years, I have never seen anything of the sort. They will do a Filing Enforcement as quickly as a year after the due date of the return. If the FTB has the information, they don't wait. The FTB has no interest in assessing liabilities they cannot collect. However, there is NO Statute of Limitations on the assessment of an UNFILED return for either the FTB or the IRS.
And California DOES have a collection statute of limitations of 20 years.
AB 911 (Chu, Chapter 398, Statues of 2005) limited the collection period to 20 years
beginning from the date the last tax liability became due and payable, except for a
liability related to the amnesty penalty assessed under R&TC section 19777.5.