Refund Rights for Taxpayers Act

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. 1. Short title This Act may be cited as the Refund Rights for Taxpayers Act 2. Extension of statute of limitations on making claim for credit or refund (a) In general Section 6511(a) 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 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 (b) Conforming amendments (1) Section 6511(a) of such Code is amended by striking 3 years 7 years (2) Section 6511(b)(2) of such Code is amended— (A) by striking 3-year period 7-year period (B) by striking 3 years 7 years (C) by striking subparagraph (B) and redesignating subparagraph (C) as subparagraph (B). (3) Section 6511(d)(1) of such Code is amended— (A) by striking Seven-year Special (B) by striking 3-year period 7-year period (4) Section 6511(d)(2)(A) of such Code is amended— (A) by striking 3-year period 7-year period (B) by striking 3 years 7 years (5) Section 6511(d)(3)(A) of such Code is amended by striking 3-year period 7-year period (6) Section 6511(d)(4)(A) of such Code is amended— (A) by striking 3-year period 7-year period (B) by striking 3 years 7 years (7) Section 6511(d)(5) of such Code is amended by striking second year seventh year (8) Section 6511(d)(6) of such Code is amended by striking one year 7 years (9) Section 6511(d)(7) of such Code is amended by striking second year seventh year (10) Section 6511(d)(8) of such Code is amended— (A) in subparagraph (A)— (i) by striking 3-year period 7-year period (ii) by striking 1-year period 7-year period (B) in subparagraph (B)— (i) by striking 5 taxable years 7 taxable years (ii) by striking 5 years 7 years (c) 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. 3. Shortening of statute of limitations on collection after assessment (a) In general Section 6502(a) (1) by striking 10 years 7 years (2) by striking 10-year period 7-year period (b) Effective date The amendments made by this section shall apply levies made, and proceedings begun, after the date of the enactment of this Act.

Summary: Refund Rights for Taxpayers Act This bill amends the Internal Revenue Code to: (1) extend the statute of limitations for making a claim for a credit or refund for the overpayment of any tax, and (2) shorten the statute of limitations for a collection after the assessment of any tax. (Under current law, the statute of limitations for making a claim for a credit or refund is three years from the time the return was filed or two years from the time the tax was paid, whichever period expires later. If no return was filed by the taxpayer, the limit is two years from the time the tax was paid.) The bill extends this limit to seven years from the later of the time the return was filed or the tax was paid or, if no return was filed, seven years from the time the tax was paid. With respect to the statute of limitations for a collection after the assessment of any tax, the bill decreases the limit from 10 years to 7 years after the assessment of the tax.