Contents
- (a) General rule2 changes
- (b) Time return deemed filed4 changes
- (c) Exceptions18 changes
- (d) Request for prompt assessment1 change
- (e) Substantial omission of items13 changes
- (f) Personal holding company tax1 change
- (g) Certain income tax returns of corporations3 changes
- (h) Net operating loss or capital loss carrybacks3 changes
- (i) Foreign tax carrybacks2 changes
- (j) Certain credit carrybacks4 changes
- (k) Tentative carryback adjustment assessment period2 changes
- (l) Special rule for chapter 42 and similar taxes4 changes
- (m) Deficiencies attributable to election of certain credits20 changes
- (n) Assessable payment of employer shared responsibility9 changes
- (o) Material assistance from a prohibited foreign entity7 changes
- (p) Cross reference4 changes
(e)Except as otherwise provided in subsection (c)—
(1)In the case of any tax imposed by subtitle A—
(A)If the taxpayer omits from gross income an amount properly includible therein and—
(i)such amount is in excess of 25 percent of the amount of gross income stated in the return, or
(ii)such amount—
(I)is attributable to one or more assets with respect to which information is required to be reported under section 6038D (or would be so required if such section were applied without regard to the dollar threshold specified in subsection (a) thereof and without regard to any exceptions provided pursuant to subsection (h)(1) thereof), and
(II)is in excess of $5,000,
the tax may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, at any time within 6 years after the return was filed.
(B)For purposes of subparagraph (A)—
(i)In the case of a trade or business, the term “gross income” means the total of the amounts received or accrued from the sale of goods or services (if such amounts are required to be shown on the return) prior to diminution by the cost of such sales or services;
(ii)An understatement of gross income by reason of an overstatement of unrecovered cost or other basis is an omission from gross income; and
(iii)In determining the amount omitted from gross income (other than in the case of an overstatement of unrecovered cost or other basis), there shall not be taken into account any amount which is omitted from gross income stated in the return if such amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the Secretary of the nature and amount of such item.
(C)If the taxpayer omits from gross income an amount properly includible therein under section 951(a), the tax may be assessed, or a proceeding in court for the collection of such tax may be done without assessing, at any time within 6 years after the return was filed.
(2)In the case of a return of estate tax under chapter 11 or a return of gift tax under chapter 12, if the taxpayer omits from the gross estate or from the total amount of the gifts made during the period for which the return was filed items includible in such gross estate or such total gifts, as the case may be, as exceed in amount 25 percent of the gross estate stated in the return or the total amount of gifts stated in the return, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time within 6 years after the return was filed. In determining the items omitted from the gross estate or the total gifts, there shall not be taken into account any item which is omitted from the gross estate or from the total gifts stated in the return if such item is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the Secretary of the nature and amount of such item.
(3)In the case of a return of a tax imposed under a provision of subtitle D, if the return omits an amount of such tax properly includible thereon which exceeds 25 percent of the amount of such tax reported thereon, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time within 6 years after the return is filed. In determining the amount of tax omitted on a return, there shall not be taken into account any amount of tax imposed by chapter 41, 42, 43, or 44 which is omitted from the return if the transaction giving rise to such tax is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the Secretary of the existence and nature of such item.
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