Question

The statute of limitations refers to a:

a. Set of provisions that limits a return preparer's rights.
b. Specific period of time within which returns must be filed.
c. Set of provisions that limits a taxpayer's rights.
d. Specific period of time within which all taxes must be assessed and collected, and all refund claims must be made.

Answer 1

The statute of limitations in tax law refers to a specific period of time within which all taxes must be assessed and collected, and all refund claims must be made.

Step-by-step explanation:

The correct answer is d. Specific period of time within which all taxes must be assessed and collected, and all refund claims must be made.

The statute of limitations in tax law refers to the time frame within which taxes must be assessed, collected, and refund claims must be made.

It sets a limit on how long the government has to take action in regards to taxes. After the statute of limitations expires, the government cannot collect taxes or issue refunds for that specific tax period.

For example, if the statute of limitations for a specific tax period is three years, the government has three years from the due date of the tax return to assess and collect any outstanding taxes or issue a refund if applicable.

After the three-year period expires, the government can no longer take any action for that tax period.

correct option .d).Specific period of time within which all taxes must be assessed and collected, and all refund claims must be made.