Deficiency taxes: Until when can the Commissioner of Internal Revenue collect?

SECTION 203 of the National Internal Revenue Code, as amended (the Tax Code), entitled "Period of Limitation Upon Assessment and Collection," provides that taxes shall be assessed within three years after the last day prescribed by law for the filing of the return or the date of actual filing of the return, whichever is later. It is silent as to when collection may be made.

On the other hand, as an exception to the three-year period of assessment, Section 222 of the Tax Code, which provides that in the case of filing a false or fraudulent return or failure to file a return, an assessment may be made within 10 years after discovery of the falsity, fraud, or omission. Unlike Section 203, Section 222 explicitly provides for the period of collection with respect to false or fraudulent returns or the failure of the taxpayer to file a return, i.e., collection may be made within five years following the assessment of the tax.