Section 1 Short title
This Act may be cited as the “Refund Rights for Taxpayers Act”.
Refund Rights for Taxpayers Act
A BILL
To amend the Internal Revenue Code of 1986 to extend the statute of limitations on making a claim for credit or refund and shorten the statute of limitations on collection after assessment.
Sec. 2 Extension of statute of limitations on making claim for credit or refund
In general— Section 6511(a) of the Internal Revenue Code of 1986 is amended by striking “3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 2 years from the time the tax was paid” and inserting “7 years from the later of the time the return was filed or the tax was paid, or if no return was filed by the taxpayer, within 7 years from the time the tax was paid”.
Conforming amendments—
Section 6511(a) of such Code is amended by striking “3 years” in the last sentence and inserting “7 years”.
Section 6511(b)(2) of such Code is amended—
by striking “3-year period” each place it appears in the heading and text of subparagraph (A) and inserting “7-year period”,
by striking “3 years” each place it appears in subparagraph (A) and inserting “7 years”, and
by striking subparagraph (B) and redesignating subparagraph (C) as subparagraph (B).
Section 6511(d)(1) of such Code is amended—
by striking “Seven-year” in the heading and inserting “Special”, and
by striking “3-year period” and inserting “7-year period”.
Section 6511(d)(2)(A) of such Code is amended—
by striking “3-year period” and inserting “7-year period”, and
by striking “3 years” and inserting “7 years”.
Section 6511(d)(3)(A) of such Code is amended by striking “3-year period” and inserting “7-year period”.
Section 6511(d)(4)(A) of such Code is amended—
by striking “3-year period” and inserting “7-year period”, and
by striking “3 years” each place it appears and inserting “7 years”.
Section 6511(d)(5) of such Code is amended by striking “second year” and inserting “seventh year”.
Section 6511(d)(6) of such Code is amended by striking “one year” and inserting “7 years”.
Section 6511(d)(7) of such Code is amended by striking “second year” and inserting “seventh year”.
Section 6511(d)(8) of such Code is amended—
in subparagraph (A)—
by striking “3-year period” and inserting “7-year period”, and
by striking “1-year period” and inserting “7-year period”, and
in subparagraph (B)—
by striking “5 taxable years” in the heading and inserting “7 taxable years”, and
by striking “5 years” and inserting “7 years”.
Effective date— The amendments made by this section shall apply to claims for credit or refund filed after the date of the enactment of this Act.
Sec. 3 Shortening of statute of limitations on collection after assessment
by striking “10 years” in paragraph (1) and inserting “7 years”, and
by striking “10-year period” in paragraph (2)(B) and inserting “7-year period”.
Effective date— The amendments made by this section shall apply levies made, and proceedings begun, after the date of the enactment of this Act.