What does statute of limitations mean on the CPA exam?
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Statute of limitations. The window in which the Service may assess more tax, normally three years from filing, extended to six for a substantial omission of income and unlimited for a false return or none at all.
Defined against Sec. 6501.
Which CPA exam sections use statute of limitations?
Statute of limitations appears in the REG section of the CPA exam.
Related terms
- statute of frauds: The rule that certain contracts are unenforceable unless evidenced in writing and signed, including sales of land, sales of goods of 500 dollars or more, and agreements that cannot be performed within a year.
- claim for refund: A formal request to get back tax already paid.
- recognition period: The window during which a converted C corporation's built-in gains remain exposed to the corporate-level tax.
- operating segment: A component of a public entity that may recognize revenues and incur expenses, whose operating results the chief operating decision maker reviews to allocate resources and assess performance, and for which discrete financial information is available.
- constructive receipt: Income is taxed when it is made available without substantial restriction, not when it is collected.
- nonresident alien: An individual who is neither a United States citizen nor a resident under the green card or substantial presence tests.