Protecting Innocent Taxpayers from Endless Assessments Act

This bill changes the rules about how long the IRS has to go back and charge someone for taxes they owe when a false or fraudulent tax return was filed. Normally, the IRS has three years to do this, but for fraudulent returns there is currently no time limit. Different courts have disagreed about whether the no-time-limit rule applies when a tax preparer — not the taxpayer — is the one who put false information on the return without the taxpayer knowing. This bill says the no-time-limit rule should only apply when the taxpayer personally intended to cheat on their taxes, meaning innocent taxpayers whose tax preparers filed false returns without their knowledge would be protected by the regular three-year time limit.

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