To amend the Internal Revenue Code of 1986 to extend the period for filing for a credit or refund of individual income taxes to 7 years.

January 8, 2003

Mr. BAKER introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to extend the period for filing for a credit or refund of individual income taxes to 7 years.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Tax Refund Statute of Limitation Extension Act'.

SEC. 2. FINDINGS.

Congress finds the following:

(1) Every individual taxpayer should receive a credit or refund for the overpayment of Federal income taxes if the taxpayer's claim for a credit or refund can be verified by the Internal Revenue Service.

(2) In order to provide for more accurate and complete individual income tax records, Congress should provide an incentive to taxpayers that encourages the filing of amended tax returns.

SEC. 3. EXTENSION OF PERIOD FOR FILING FOR CREDIT OR REFUND OF INDIVIDUAL INCOME TAX.

(a) IN GENERAL- Subsection (a) of section 6511 of the Internal Revenue Code of 1986 (relating to limitations on credit or refund) is amended by adding at the end the following new sentence: `For purposes of applying this section with respect to tax imposed by subtitle A on an individual--

`(1) the references to 2 years and to 3 years in the first sentence, in subsection (b)(2), and in paragraphs (2) and (4) of subsection (d) shall be applied by treating such references as references to 7 years, and

`(2) the references to 3-year periods in subparagraphs (A) and (B) of subsection (b)(2) and in paragraphs (2) and (4) of subsection (d) shall be applied by treating such references as references to the 7-year period from the time the return was filed.'

(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to taxes paid for taxable years ending after the date of the enactment of this Act.

END