Statute limits for 2001 Payroll

[newbie]

Received a letter this weekend that said: Tax Period Dec 31, 2001, Form 940 Statute Expiration Date Aug 25, 2007.


It is stating that all State unemployment contributions were not paid, therefore they are increasing the FUTA tax $3,895.49. I will just get a recertification letter from the state so I'm not worried about the tax due but without researching the issue I was just wondering:


How long is the statute of limitations for payroll tax if all reports were filed a timely?

[Snaggletooth]

What do the documents say?

Newbie, make sure that all state contributions WERE in fact paid by their due dates.
Be prepared to gather documentation which proves this if need be.

Also, examine the 940 for that year, and make sure this question was answered "yes."

If these two things are in order, you should be OK. Good luck...

[newbie]

Thanks Snaggletooth

According to my records Form 940 was filed on 1/27/2002. According to QuickBooks all SUTA tax was paid timely, I'll have to see if I can locate the bank statements. Also, tomorrow I will check to see if the State no. was incorrect, if not and all payments were timely made I'll ask the state to recertify.

I guess what I don't understand is why, according to the IRS notice, the Statute Expiration Date is August of 2007 if the Form 940 report and payment would have been due 1/31/2002?

[Snaggletooth]

I don't either

It would appear that a 3-year Statute would have expired on 01/31/05. Obviously, IRS uses other reasoning to allow distortions of the 36 months when they can. One thing is for sure, IRS people are more knowledgeable about Statutes of Limitation because they work up against the 11th hour more than we do. Maybe some knowledgeable person will answer the post.

Curious as to what is creating their information if everything has been paid. Were you the accountant back in 2001? If you weren't, there's a good possibility you may be surprised at what information gets unraveled.