Under Sec. 203 NIRC, within what period must internal revenue taxes be assessed?

Under Sec. 203 NIRC, within what period must internal revenue taxes be assessed?

• A. Within three years after the last day prescribed for filing the return.
• B. Within one year of the filing date.
• C. Within five years after the end of the taxable year.
• D. At any time without limit.

Answer: (A)

The period to assess internal revenue taxes is governed by a statute of limitations: three years after the last day prescribed for filing the tax return. This means the assessment window starts from the due date for filing (including extensions) and runs for three years. That is why the correct approach isn’t one year, five years after the year ends, or without limit—the general rule sets a three-year limit. In practice, there are exceptions where the period can be extended (such as fraud or failure to file a return), but for ordinary cases the three-year window is the standard.

The period to assess internal revenue taxes is governed by a statute of limitations: three years after the last day prescribed for filing the tax return. This means the assessment window starts from the due date for filing (including extensions) and runs for three years. That is why the correct approach isn’t one year, five years after the year ends, or without limit—the general rule sets a three-year limit. In practice, there are exceptions where the period can be extended (such as fraud or failure to file a return), but for ordinary cases the three-year window is the standard.