Note:

See Employee Plans Examination Exhibits for a matrix to help compute the statutes under IRC 4975.

Involving a discrete act (one-time occurrence, such as a sale), even though the taxes are imposed annually, there is only one period of limitations applicable to all the tax attributable to the prohibited transaction. Therefore, the filed or due date to be used in determining the statute of limitations date is limited to that of the initial Form 5500 return filed for the period in which the discrete act occurred.

For a prohibited transaction that is considered a continuing transaction, such as a loan or lease, the situation is different.

In addition to the original transaction, a new transaction is deemed to occur on the first day of each subsequent taxable year of the disqualified person.

The filing of the Form 5500 return for the year in which the prohibited transaction first occurred starts the running of the statute of limitations for purposes of the tax on the actual transaction occurring in that plan year.

The filing of the Form 5500 return for each subsequent plan year starts the running of the statutes for transactions deemed to reoccur in subsequent years.

Forms 990-T reporting UBIT:

The three-year statute of limitations for assessment of taxes begins:

If the trust files a Form 990-T, the statute of limitations begins to run on its filing date.

If the Form 990-T is not filed, the statute of limitations starts to run based upon the Form 5500 return if: i. The plan administrator files the Form 5500 series return, and ii. The Form 5500 discloses sufficient information to reveal the existence of UBI.

If the trust reported UBI on the Form 5500 series return, and the amount of omitted gross income from unrelated business activity is greater than 25% of the reported gross income from unrelated business activity, the statute of limitations period is six years from the date the Form 5500 series return was filed. See IRC 6501(e).