Key Takeaways
- 30 Days: Time to protest a "30-Day Letter" (Examination Report).
- 30 Days: Time to request a CDP Hearing after Final Notice of Intent to Levy.
- 90 Days: Time to petition Tax Court after "Statutory Notice of Deficiency".
- 3 Years: Statute for Assessment (General) and Refund Claims.
- 6 Years: Statute for Assessment (Substantial Omission > 25%).
- 10 Years: Statute for Collection (CSED).
- 2 Years: Time to request Innocent Spouse Relief (from first collection notice).
The Clock of Representation: Master Deadlines
Why This Matters for the Exam
Time limits are the most testable topic on Part 3. The IRS operates on strict deadlines, and missing one can cost a taxpayer their appeal rights, their refund, or their chance to contest a deficiency. As an EA, you'll be expected to know these cold.
Expect at least 5-8 questions directly testing your knowledge of deadlines. Many more questions will involve scenarios where you need to apply these time limits to determine the correct course of action.
The Master Deadline Table
This is the single most important table in Part 3. Memorize it.
| Event | Time Limit | From When? | Form/Action |
|---|---|---|---|
| 30-Day Letter Response | 30 Days | Date of letter | Protest letter to Appeals |
| 90-Day Letter (Tax Court) | 90 Days | Date of letter | Petition to Tax Court |
| CDP Hearing Request | 30 Days | Final Notice of Intent to Levy | Form 12153 |
| Equivalent Hearing | 1 Year | Final Notice of Intent to Levy | Form 12153 (late) |
| Refund Claim (General) | 3 Years from filing OR 2 Years from payment | Whichever is later | Form 1040-X or 843 |
| Assessment Statute (General) | 3 Years | From due date or filing date | IRS must assess within this period |
| Assessment (Substantial Omission) | 6 Years | From due date or filing date | If > 25% gross income omitted |
| Assessment (Fraud) | Indefinite | No limit | Civil fraud (no statute) |
| Collection Statute (CSED) | 10 Years | From date of assessment | IRS must collect within this period |
| Innocent Spouse Relief | 2 Years | From first collection notice | Form 8857 |
| Injured Spouse Claim | 3 Years | From due date (or 2 years from payment) | Form 8379 |
| OIC (Offer in Compromise) | No deadline | Any time debt exists | Form 656 |
Understanding the Key Deadlines
The 30-Day Window: "30-Day Letters"
When the IRS completes an examination (audit), they issue a 30-Day Letter (also called an Examination Report or RAR - Revenue Agent Report). This letter proposes adjustments to the taxpayer's return.
Options within 30 Days:
- Agree: Sign the report and pay the proposed tax (or set up a payment plan).
- Disagree: File a written protest with the IRS Office of Appeals.
- Do Nothing: The IRS will issue a Statutory Notice of Deficiency (90-Day Letter).
Exam Trap: The 30-day deadline is NOT jurisdictional. Missing it doesn't automatically result in assessment—it just means the IRS will escalate to a 90-Day Letter.
The 90-Day Window: "Statutory Notice of Deficiency"
If the taxpayer disagrees with the IRS's proposed adjustments (or doesn't respond to the 30-Day Letter), the IRS issues a Statutory Notice of Deficiency, commonly called a "90-Day Letter" or "Ticket to Tax Court."
Critical Rule: The taxpayer has exactly 90 days (150 days if abroad) from the date of the notice to file a petition with the U.S. Tax Court.
Why It Matters:
- The Tax Court is the only court where you can challenge the IRS before paying the tax.
- If you miss the 90-day deadline, you must pay the tax first, then sue for a refund in District Court or Court of Federal Claims.
- The 90-day deadline is jurisdictional—the Tax Court cannot extend it.
The 30-Day CDP Window: Collection Due Process
When the IRS issues a Final Notice of Intent to Levy or Notice of Federal Tax Lien Filing, the taxpayer has 30 days to request a Collection Due Process (CDP) Hearing.
What Happens at a CDP Hearing:
- The taxpayer can challenge the appropriateness of the collection action.
- The taxpayer can propose alternatives (Installment Agreement, Offer in Compromise, Currently Not Collectible status).
- A Settlement Officer presides over the hearing.
If You Miss the 30-Day Deadline: You can still request an Equivalent Hearing within 1 year, but you lose the right to appeal to Tax Court.
The Statutes of Limitations
Assessment Statute (3 Years - General): The IRS generally has 3 years from the date the return was filed (or due, if later) to assess additional tax.
Assessment Statute (6 Years - Substantial Omission): If the taxpayer omits more than 25% of gross income, the statute extends to 6 years.
Assessment Statute (Fraud - Indefinite): If the taxpayer commits fraud, there is no statute of limitations. The IRS can assess tax at any time.
Collection Statute (10 Years - CSED): Once tax is assessed, the IRS has 10 years to collect it. This is called the Collection Statute Expiration Date (CSED). After 10 years, the debt expires (unless the statute was tolled).
Real-World Scenario
Scenario: A taxpayer receives a 90-Day Letter dated March 1, 2025. They are in the US.
- Question: What is the deadline to petition Tax Court?
- Answer: May 30, 2025 (90 days from March 1).
- If they miss it: They must pay the tax first, then file a refund suit.
On the Exam
Expect 5-8 questions on deadlines, typically:
- Direct Questions: "How long does a taxpayer have to petition Tax Court after receiving a Statutory Notice of Deficiency?"
- Scenario Questions: "A taxpayer receives a CDP notice on June 1. By what date must they request a hearing?"
- Consequence Questions: "What happens if a taxpayer misses the 90-day deadline?"
The key is to memorize the table and understand what happens when each deadline is missed.
A taxpayer receives a Statutory Notice of Deficiency (90-Day Letter). How long do they have to petition the Tax Court?
What is the Collection Statute Expiration Date (CSED)?
If a taxpayer omits more than 25% of gross income, how long does the IRS have to assess additional tax?