The amendment to § 6501(e) applies to all returns as long as the period of time (determined without regard to the § 6501(e) amendments referenced above) for assessment of taxes has not expired as of March 18, 2010. Therefore, if the income tax return was filed after March 18, 2010, or the assessment statute was otherwise still open as of that date, and more than $5,000 was omitted from gross income that is attributable to specified foreign financial assets, the statute remains open under § 6501(e) for a total of six years from the date the return was filed.In general, this new provision means that the year 2006, with a tax return due date is April 15, 2007, will be subject to a 6 year statute of limitations if there is a $5,000+ omission related to specified foreign financial assets. Earlier years will be subject to the rule only if the statute were otherwise open on March 18, 2010. Assuming the returns for those pre-2006 years were filed prior to March 18, 2007, the statute is not affected by this new 6 year statute unless (i) there were a 25% omission of gross income (whether foreign account related or not) which would have caused a 6 year statute under general rules (which would mean that the new 6 year statute would run contemporaneously with the 25% omission 6 year statute, so that the new statute of limitations applies but is irrelevant), (ii) the taxpayer timely consented to extend the statute of limitations to a date including March 18, 2010 (taxpayers in this circumstance should note that the end date of a Form 872 will not control), or (iii) the filed return was fraudulent (in which case the new 6 year statute of limitations is also irrelevant).
The memo also notes that, for years for which a Form 8938 required by Section 6038D is required (2011 forward), the statute of limitations remains open until three years after the date the taxpayer supplies the required information. This statute extension applies to all items on the return but, upon showing of reasonable cause and not willful neglect, the extension applies only to income items associated with the failure.