Building the Case: Authority, Deadlines and Notices

The tools a representative uses to build a client's case: the hierarchy of tax authority, the statutes of limitations for assessment, refund and collection, the timely mailing rule, post-filing notices, the Taxpayer Advocate, identity theft procedures, financial analysis and the line between avoidance and evasion. Deadline arithmetic is the core skill.

Representation before the IRS5 min read6 sections

Must-know for the exam

The IRS generally has 3 years after filing to assess; an early return is treated as filed on the statutory due date (IRC 6501(a), (b)(1); Rev. Rul. 81-269).
Omitting more than 25% of gross income stated on the return extends assessment to 6 years (IRC 6501(e)(1)(A)).
A fraudulent return, willful evasion or no return leaves assessment open indefinitely (IRC 6501(c)(1)-(3)).
An amended return showing more tax received within 60 days of the ASED gives the IRS 60 days from receipt to assess that amount (IRC 6501(c)(7)).
The IRS has 10 years from assessment to collect; offers, installment requests, CDP hearings and bankruptcy suspend the period (IRC 6502(a); IRM 5.1.19).
Refund claims are due within 3 years of filing or 2 years of payment; withholding is deemed paid on the return due date (IRC 6511, 6513(b)(1)).
A properly addressed, prepaid return postmarked by the due date is filed on the postmark date (IRC 7502(a); Treas. Reg. 301.7502-1).
Private letter rulings bind only the requesting taxpayer and may not be cited as precedent; published revenue rulings may be relied on (IRC 6110(k)(3)).
A math error assessment is abated if the taxpayer asks within 60 days after the notice is sent (IRC 6213(b)(2)).
Form 911 requests Taxpayer Advocate help; Form 14039 reports tax-related identity theft (IRC 7803(c), 7811; Form 14039 instructions).

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Traps that cost marks

Counting from the early filing date, or from a weekend- or holiday-shifted deadline.
Confusing the 25% omission test with the 10% substantial understatement test.
Thinking large understatements alone remove the statute.
Confusing the collection statute with the 3-year assessment period.
Assuming any contact with the IRS stops the collection clock.
Applying the 2-year lookback to a claim filed within the 3-year period.
Thinking the IRS receipt date controls.
Ranking regulations above the statute they interpret.

Why it matters on the exam

Before arguing the merits, a representative must know whether the IRS is still in time, whether the client is still in time, and what authority supports the position. Part 3 Domain 2 tests these with date calculations and with the ranking of legal sources.

Practice before the IRS does not include the courts: an EA may appear in the US Tax Court only after passing the Tax Court's nonattorney examination (Tax Court Rule 200(a)(3)).

Statutes of limitations

Period	Length	Starts
Assessment, general	3 years	Later of filing or the statutory due date
Assessment, over 25% omission	6 years	Same
Assessment, fraud or no return	No limit	Not applicable
Collection (CSED)	10 years	Date of assessment
Refund claim	3 years from filing or 2 years from payment, whichever is later	Lookback limits the amount

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Representation before the IRS