Overcoming the statute of limitations

Parties adversely affected by either a double deduction or double inclusion of income may attempt to seek relief by lifting the statute of limitations through the provisions of Secs. 1311, 1312, 1313, 1314, and 1315. Where these provisions cannot be met, taxpayers may still seek relief by use of the judicial doctrine of equitable recoupment. Unfortunately, court decisions have left many unanswered questions in both areas. Several requirements must be satisfied to obtain relief under these sections. A determination for an open year must indicate the earlier time-barred treatment was erroneous. Some of the questions that continue to cause problems in litigation are: 1. What is a determination? 2. What is an item of income? 3. Do the mitigation statutes apply only to income taxes? A discussion of these questions and various court decisions is presented.