Limits IRS fraud exception to taxpayer intent

Says the IRS can only collect taxes without a time limit when the taxpayer meant to cheat, not when a tax preparer changed a return without their knowledge.

• Currently the IRS can assess taxes at any time if a return is false or fraudulent
• The bill limits that open-ended window to cases where the taxpayer intended to evade taxes
• Otherwise the usual three-year limit from the filing date applies
• Follows a Tax Court ruling on preparers who put false entries on returns

Passed the House · Senate's turn

Read the full bill