Given this relatively short statute of limitations that the IRS has to assess tax liabilities against taxpayers, in certain cases, the current government shutdown can likely be used effectively as a defense in an IRS audit. For example, suppose the IRS was auditing a taxpayer’s 2010 individual income tax return just prior to the government shutdown. The due date of the 2010 tax return was April 15, 2011. This means that the IRS will likely only have until April 15, 2014 to make an additional assessment against this taxpayer. If the government shutdown were to drag on for a number of weeks or even months, it is not difficult to imagine a scenario in which the IRS would be barred from making an additional assessment against the taxpayer in our example.
Read the full Article "The Government Shutdown- Great News For Some Taxpayers" on the Moskowitz Tax Lawyer Blog.