- Case Type:
- Case Status:
- Reversed and Remanded
- 19-51000 (5th Circuit, Dec 11,2020) Published
- Taxpayer/Debtor filed IRS forms 1040 and 1099 which contained data sufficient to show the taxpayer was liable for certain backup-withholding taxes. Those forms constituted a "return" that began the running of the three year assessment limitations period under the Internal Revenue Code. The IRS assessed the taxpayer more than three years after the filing of those forms. The Fifth Circuit ruled that the assessment was barred by the three year limitations period, thereby reversing both lower courts.
- Procedural context:
- Appeal from the United States District Court for the Western District of Texas.
- Taxpayer/Debtor filed IRS forms 1040 and 1099, reflecting he paid various subcontractors for their work. Many of the subcontractors failed to furnish taxpayer identification numbers to the debtor. As a result, the debtor was required to "backup" withhold from each payment to them. The debtor failed to do so and the IRS assessed the taxes against the debtor-but it assessed the taxes more than three years after the forms were filed.
- Jolly, Jones and Willet
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