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Case Types & Expiration Timelines
| Acronym | Details | Timeline / Expiration Rules |
|---|---|---|
ASED (Assessment Statute Expiration Date) | Time the IRS has to assess additional tax (charge you more money). Once the ASED passes, the IRS can no longer audit that tax return or charge you more tax for that year (unless there was fraud or no return was filed). | 3 years from filing date (or 3 years from the due date if filed early). [>90 days: Process adjustment normally. <=90 days: Get to Statute Dept immediately. <=5 days: STOP! Contact Lead/Manager immediately.] |
RSED (Refund Statute Expiration Date) | Time the taxpayer has to claim a refund or credit. If you paid too much tax or forgot to claim deductions, you must file an amended return (Form 1040X) before the RSED expires, or the IRS legally cannot issue your refund. | 3 years from the date of overpayment. |
CSED (Collection Statute Expiration Date) | Time the IRS has to collect unpaid tax debt. Once this date passes, the IRS cannot legally force you to pay the debt (though some actions, like wage garnishments, bank levies, or payment plans, certain liens or levies, may remain valid depending on when they were filed). | 10 years from the date of assessment. |
ERSED (Erroneous Refund Statute Expiration Date) | Time the IRS has to collect an erroneous refund (IRS accidentally sends a taxpayer a refund check by mistake) | 2 years from issuance date (IRS error or inadvertent TP error). 5 years from issuance date (TP error by fraud). |
Statute Imminent: means that a case's Statute Expiration Date (most commonly the ASED – Assessment Statute Expiration Date) is getting very close to expiring.
2. Complete Master Workflow (Text-Based Flowchart)
diagram
=================================================================================
START: STATUTE SEARCHING A CASE
=================================================================================
│
▼
Is the case in question a STATUTE YEAR?
│
┌─────────────────┴─────────────────┐
▼ ▼
[NO] [YES]
│ │
(Normal Processing) ▼
Check the ASED Status:
How many days remain on the ASED?
│
┌─────────────────────────────────┼─────────────────────────────────┐
▼ ▼ ▼
[MORE THAN 90 DAYS] [90 DAYS OR LESS] [5 DAYS OR LESS]
│ │ │
│ │ ┌────────────┴────────────┐
│ │ │ CRITICAL EMERGENCY: │
│ │ │ Do NOT follow normal │
│ │ │ procedures! See IRM │
│ │ │ 25.6.1.9.9.2 & contact │
│ │ │ Lead/Manager IMMEDIATELY│
│ │ └─────────────────────────┘
│ │
▼ ▼
Is Form 1040X a Check Account & Claim Details:
Tax Increase or 1. Calculate Account Tax: TC 150 +/- TC 29X/30X/40X
Credit Decrease? 2. Check 1040X Line 11, Col C (Total Tax):
│ ---> Is Total Tax INCREASING?
├─────────────┐ 3. Check 1040X Line 12-15, Col C (Payments/Credits):
▼ ▼ ---> Are Credits DECREASING vs TXMODA?
[YES] [NO] │
│ │ ├─────────────────────────┐
│ ▼ ▼ ▼
│ (Continue Tax [YES] [NO]
│ Decrease / (Send Claim to (Take No Action on account;
│ RSED Checks) Statutes) Functional Manager must
│ │ hand carry to Statutes per
▼ │ IRM 25.6.1.9.9.2)
Input Adjustment │
▼
STATUTE ROUTING & HAND-CARRY DECISION
│
Is the case processed as an ORIGINAL?
│
┌─────────────────┴─────────────────┐
▼ ▼
[YES] [NO]
│ │
(Can be sent to Statute (Must be HAND CARRIED to Statutes)
through CIS under SUSPEND. │
Statutes stamps case on CIS │
before submitting) │
│ │
└─────────────────┬─────────────────┘
│
▼
PREPARE PHYSICAL & SYSTEM PACKAGE
│
1. Print CIS Case (First 10 pages or most relevant pages).
2. Print IDRS Screen Prints: TXMODA, IMFOLT, and ENMOD.
3. Complete Form 10959 (Complete on-screen & print 3 copies).
4. Attach 3 copies of Form 10959 to the CIS case & IDRS prints.
5. Suspend CIS case for 1 WEEK using monitor.
6. Update IDRS activity using:
• Command Code: ACTON
• Line: C0?,STATUXX-XX,S
(? = case control code; XX-XX = date 1 week from input)
7. Hand carry to Statutes OR deliver to designated Statute Runner.
│
▼
1-WEEK FOLLOW-UP & RETURN
│
Has 1 week passed without return?
├───> [YES] ---> Follow up with Statute Runner.
│
▼
[CASE RETURNED FROM STATUTES]
│
What indicator/instruction is written?
│
┌─────────────────────────────────┴─────────────────────────────────┐
▼ ▼
["KEPT" written on Form 10959] [OTHER INSTRUCTIONS]
│ │
├─> Leave CASE NOTE on CIS (not case msg): └─> Follow returned
│ "KEPT BY STATUTE" specific instructions.
├─> Input TC 971-014
└─> Close CIS Case3. RSED Processing Workflows (Expired vs. Not Expired)
If no reply is received or additional information arrives after the requested response date, evaluate the Refund Statute Expiration Date (RSED):
RSED EVALUATION
│
Has the RSED Expired (3-Year Limit)?
│
┌───────────────────┴───────────────────┐
▼ ▼
[YES: EXPIRED] [NOT EXPIRED]
│ │
IRM 21.5.3.4.3(5) Disallowance IRM 21.5.3.4.6.3 No Consideration
│ │
1. Send Certified Letter 105C 1. Send Letter 916C (explain why
(must include Appeal Rights). claim is not being considered).
2. Input TC 290 for .00 with 2. Input TC 290 for .00 with
appropriate reason code. appropriate reason code.
3. Select Blocking Series: 3. Select Blocking Series:
• If original return was filed • Use appropriate blocking series.
electronically: Use Blocking • DO NOT use blocking series
Series 99 & attach TRPRT or 98 or 99.
IMFOLR/BMFOLR print.
• Paper/Other: Use Blocking
Series 98 or 99.4. Special Clearance Rules
- 180 Days or Less ASED (Reinputs): Forward any reinput return within 180 days of the ASED to the Statute team for clearance prior to routing to any other functional area.
5. CIS Screen Entry Map ("Update Case Data")
- Statute Searched Radio Button: Select (o) YES
Dinga
References
- 21.5.2.4.23.4 Statute Imminent Documents
- 25.6.1.5 Basic Guide for Processing Cases with Statute of Limitations Issues
- 25.6.1.7.2 Time When Payments and Credits are Considered to be Made
- 25.6.1.10.2.7.2.2 Two-year Rule
- 25.6.1.10.2.9 Claims for Credit or Refund- Taxpayers in Special Situations
- 21.5.3.4.3 Tax Decrease and Statute Consideration
- TCD 0071-Statute of Limitations Overview
- TCD 0072 Assessment Statute Expiration Date (ASED)
- TCD 0073 Collection Statute Expiration Date (CSED)
- TCD 0074 Refund Statute Expiration Date (RSED)
Statute searching a case:
- See if the case in question is a statute year
- Look at the ASED (if more than 90 days out, no need to continue. If 90 days or less continue!)
- Determine how much tax is currently on the account
- Take the TC150 amount and add/subtract and amounts from any adjustments i.e. TC’s 29X/30X/40X
- Look at the taxpayer’s claim and determine whether they are making any changes to their total tax
- Line 11, column C on the Form 1040X
- If the number is increasing send the claim to Statutes
- Look at the taxpayer’s claim and determine if they are making any changes to their credits
- Line 12-15, column C, the payment section of the Form 1040X
- If the number for their credits is decreasing in comparison to what is on TXMODA, send the claim to Statutes
Process:
Do not follow these procedures if the case is a tax increase (or credit decrease) and the ASED is within 5 days! - See IRM 25.6.1.9.9.2 & your lead/manager immediately.
- Only cases that are process as original can be sent to statute through CIS under suspend. They can stamp the case on CIS before you submit it for processing. All other cases must be hand carried.
- If the case is a tax increase (or credit decrease) and the ASED is within 90 days do the following:
- Print the CIS case (only the first 10 pages are needed or pages most relevant to the case).
- Print TXMODA, IMFOLT, and ENMOD.
- Complete Form 10959 (it is best to complete it on the screen and print 3 copies).
- Attach the 3 copies of Form 10959, CIS case, and IDRS prints.
- Suspend your CIS case for 1 week using monitor.
- Update your activity on IDRS using: ACTON C0?,STATUXX-XX,S (? Will depend on which case control is yours, XX-XX is the date one week from the date of input)
- Give the paperwork to your designated statute runner or walk case to Statutes.
- If your case is not returned within 1 week, follow up with your statute runner.
- If the case is returned with “KEPT” written on the Form 10959 then leave a CASE NOTE (not case message) “KEPT BY STATUTE” on CIS. Input a TC 971-014. Close your CIS case.
- If the case is returned with other instructions follow those instructions.
- ASED - tax increase/credit decrease assessment expiration date within 90 days get it out to statute department so it's not barred
- 180 days or less forward any reinput return within 180 days of the ASED to the Statute team for clearance prior to routing to any other area.
- RSED - refund statute expiration 3 years
- CSED - collection expiration date 10 years
- ERSED - erroneous incorrect refund statue expiration 2 years from issuance date if IRS error or inadvertent TP error/ 5 years from refund issuance date if TP error by fraud
Expired:
- If there is no reply or the request for additional information is received after the requested response date and the RSED has expired, disallow the claim per IRM 21.5.3.4.3(5), Tax Decrease and Statute Consideration:
- Procedures:
- Send certified Letter 105C and include appeal rights
- Input TC 290 for .00 with the appropriate reason code and blocking series 98 or 99
- If the original return was filed electronically, use blocking series 99 and attach TRPRT or the IMFOLR/BMFOLR print
Not expired:
- If there is no reply received by the requested response date and the RSED has not expired, follow the "No Consideration" procedures as outlined in IRM 21.5.3.4.6.3, No Consideration
- Procedures:
- Send Letter 916C to include why the claim is not being considered
- Input TC 290 for .00 with appropriate reason code and blocking series
- DO NOT use blocking series 98 or 99
More than 90 days ASED
- If more than 90 days remain on the ASED, and Form 1040X is a tax increase or credit decrease, input the adjustment.
90 days or less ASED
- If 90 days or less remain on the ASED, and Form 1040X requires a tax increase or credit decrease, take no action on the account and the functional manager must hand carry to Statutes per IRM 25.6.1.9.9.2, After Hours and Imminent Assessments.