What is the Statute of Limitations?
Published on July 03, 2025
by Jeff Patterson
Reviewed by
Jeff Patterson is an American living in Scotland and joined the team at Expat Tax Online after experiencing the complexities of living abroad with a family.
Table of Contents
The Statute of Limitations is a law that sets a time limit for someone to file a lawsuit or for the government to bring criminal charges. Once this time runs out, legal action usually can’t be taken.
These laws exist to ensure fairness in legal proceedings by preventing cases from being filed when evidence is lost, witness memories fade, or circumstances change.
How does the Statute of Limitations work in real-life cases?
For example, if someone is injured in a car accident, they only have a limited number of years to file a claim for damages. However, in criminal law, certain serious crimes like murder have no time limit, meaning charges can be filed at any time.
When can the IRS extend the statute of limitations?
Even though three years is the usual time frame, here are some situations where the IRS gets more time:
- If you leave out a big chunk of your income: If you forget (or don’t know you need) to report more than 25% of your income, the IRS has up to six years to come after you.Â
- If you don’t report foreign income or accounts properly: Let’s say you have a foreign bank account or own foreign investments. If you forget to report more than US$5,000 in income from them, the IRS has six years to act. And if they need to request documents from overseas, they can pause the clock for even longer.
- If you never file a tax return: This one’s big—if you don’t file at all, there’s no time limit. The IRS can come after you at any time in the future. Many expats think they’re off the hook because they live abroad, but the IRS still expects a yearly return.
Are there crimes the IRS can go after at any time?
Yes. There are a few serious situations where the IRS has no deadline to act:
- If your return is fraudulent: If the IRS believes you purposely lied or tried to cheat on your return, they can open an investigation whenever they want.
- If you committed tax fraud: Civil tax fraud (which means lying or hiding things to avoid paying) has no expiration date. The IRS can always go back and charge you more tax, along with big penalties.
What happens if you’re being helped by the IRS Taxpayer Advocate Service?
The Taxpayer Advocate Service (TAS) is a group inside the IRS that helps people with serious tax problems or hardships—like if you’re being unfairly treated or dealing with a complicated issue. It can be a good option for expats facing big IRS problems.
But if you file a formal request with TAS, the clock on your statute of limitations might be paused while they help you. That means the IRS could get extra time to act on your return while things are being sorted out.
Special rules in the US tax code for US expats
There are specific parts of the tax law that apply more directly to people living abroad:
- Unreported foreign accounts: If you don’t report certain foreign accounts or transactions (like business interests or trust accounts), the IRS can keep the door open until three years after you finally submit the missing info. That means even if you filed your return years ago, it’s still fair game until you send them everything they were supposed to get.
- Changes in foreign tax credits: If you claim a credit for foreign taxes and then those foreign taxes change later (for example, a refund or adjustment from another country), the IRS might reopen your old returns to review those changes.
What are the benefits and downsides of the US Statute of Limitations?
Benefits:
- Protects fairness in court – Over time, evidence can be lost, and witness memories may become unreliable, making it harder to prove a case.
- Provides legal certainty – People and businesses can move on without fear of old legal claims resurfacing decades later.
- Encourages timely legal action – Victims and prosecutors are motivated to act quickly, which helps courts run more efficiently.
Downsides:
- May prevent victims from getting justice – In cases of fraud, injury, or abuse, a person may not realize they were harmed until years later, but the law may still prevent them from filing a lawsuit.
- Can protect wrongdoers – If the time limit runs out before legal action is taken, a guilty person may never be held accountable.
Laws vary by jurisdiction, meaning different states or countries have their own rules on when lawsuits or charges must be filed.
How long does the US Statute of Limitations last?
The time limit for filing a lawsuit or criminal charge depends on the type of case and the state or country’s laws. Some cases have short deadlines, while others—like murder cases—have no time limit at all.
Below is a general breakdown of how long different types of cases can remain open.
Statute of Limitations for Civil Cases (Lawsuits for Money or Damages)
- Personal Injury (Car Accidents, Slip and Falls, Medical Malpractice) – 1 to 6 years, depending on the state.
- Breach of Contract
- Written Contracts: 3 to 15 years, depending on state law.
- Oral Contracts: 2 to 6 years in most cases.
- Property Damage (Car Damage, Home Damage, Vandalism Claims) – 3 to 6 years.
- Fraud (Identity Theft, Investment Scams, Financial Fraud) – 3 to 6 years, often starting from the date the fraud is discovered.
- Defamation (Libel/Slander, False Statements That Harm Reputation) – 1 to 3 years, depending on the state.
Statute of Limitations for Criminal Cases (Government Prosecuting a Crime)
- Murder and Other Serious Crimes (Homicide, War Crimes, Kidnapping in Some States) – No statute of limitations (can be prosecuted at any time).
- Most Felonies (Theft, Assault, White-Collar Crimes) – 3 to 10 years, depending on the severity of the crime and state laws.
- Misdemeanors (Shoplifting, Trespassing, Disorderly Conduct) – 1 to 2 years in most states.
Statute of Limitations for Federal Crimes
- Most Federal Crimes (Fraud, Embezzlement, Federal Theft) – 5 years.
- Terrorism, Some Child Exploitation Crimes, or Crimes Resulting in Death – No time limit (can be prosecuted anytime).
Got questions about the Statute of Limitations?
Get expert help today.
Are there exceptions to the statute of limitations?
Yes, some situations can pause (toll) or extend the time limit, including:
- Discovery Rule – If a person didn’t realize they were harmed until later (e.g., medical malpractice or hidden fraud), the time limit may start from the date they discovered the harm.
- Defendant Hiding – If the person being sued or charged leaves the state or country, the time period may be paused until they return.
- Minors and Legal Incapacity – If the injured person is under 18 or mentally incapacitated, the statute of limitations may not start until they turn 18 or regain capacity.
Why is it important to know the Statute of Limitations?
If you miss the statute of limitations deadline, you may lose the right to file a lawsuit or prosecutors may no longer be able to charge someone with a crime.
This is why it’s crucial to act quickly if you have a legal issue. If you’re unsure how long you have to file a claim or defend yourself, speaking with a lawyer can help you understand your options.
Which crimes and cases have longer or shorter time limits?
The length of the statute of limitations depends on the type of case and the severity of the crime:
No Time Limit (Can Be Prosecuted at Any Time)
- Murder – Most states do not allow a time limit for murder charges.
- Certain Sexual Offenses – Crimes like sexual abuse of minors often have no expiration.
- Terrorism Offenses – Federal law allows the U.S. government to charge someone at any time for terrorist-related crimes.
Longer Time Limits (More Than 5 Years)
- Financial Crimes (Bank Fraud, Securities Fraud, Money Laundering) – Some fraud cases, especially those involving financial institutions, have a 10-year limit (Section 3293 of Title 18).
- DNA Evidence Cases – Some states extend the statute of limitations when new DNA evidence links a suspect to an old crime.
- Felony Sex Offenses – Many states allow longer time limits (sometimes 10–20 years) for sexual assault cases, especially when new evidence is discovered.
Shorter Time Limits (1 to 5 Years)
- Misdemeanors (Shoplifting, Vandalism, Public Intoxication) – These cases usually have 1 to 3 years to file charges.
- Civil Lawsuits (Personal Injury, Contract Disputes, Defamation) – Most states have 2 to 6 years to file a lawsuit, depending on the type of claim.
- Debt Collection Lawsuits – If a creditor wants to sue over unpaid debts, the time limit is usually 3 to 10 years, depending on the state.
What are the different types of Statutes of Limitations?
There are separate statutes of limitations for criminal cases, civil lawsuits, and special cases:
Criminal Statutes of Limitations
- These laws apply when the government prosecutes someone for a crime.
- Felonies usually have longer limits, while misdemeanors have shorter limits.
- Some crimes, like murder, have no time limit at all.
Civil Statutes of Limitations
- These apply when a person or business sues someone else.
- Personal injury cases (like car accidents) often have a 2–6 year time limit.
- Breach of contract cases can range from 3–15 years, depending on whether the contract was written or verbal.
Special Cases Without a Time Limit
- War crimes and crimes against humanity – There is no statute of limitations under international law.
- Tax fraud cases – The Internal Revenue Service (IRS) has different time limits depending on whether someone committed intentional fraud or made an honest mistake.
Why does the Statute of Limitations matter?
If you wait too long to file a lawsuit or report a crime, the case may be dismissed because the statute of limitations expired. However, some laws allow time limits to be paused or extended in special cases, like when DNA evidence is found or if the defendant left the state.
Prefer to talk it through?
Schedule your free callback today.
Spread the word. Please share… 👉
