Message Font: Serif | Sans-Serif
No. of Recommendations: 0
In case it isn't obvious what Phil is referring to here, if your unreported taxable capital gain were in six figures, you would be looking at substantial understatement of income. The statute of limitations for the IRS to pursue substantial understatement is six years, not the usual three.

Each state has its own statue of limitations, and at least for California it is after the last action by the IRS which could extend the 6 years to 10 years.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.