To assess Mr. Q's argument, the key issue revolves around whether the filing of Form 1099s, without all of the information like taxpayer ID numbers, constitutes a "return" for purposes of the statute of limitations.

Understanding Form 1099 and Statute of Limitations:

Form 1099 is used to report income of non-employees. It should include the taxpayer ID number of the recipient to be considered complete. For the statute of limitations to commence, a "return" must be filed, which generally means a complete and accurate form. An incomplete Form 1099 may not trigger the statute of limitations if it lacks essential information. Requirements for Form 945:

Mr. Q was also required to file Form 945, which is specifically for reporting withheld federal income taxes from non-employee payments. He failed to file this form. Statutory Limitations and Assessment Timing:

Generally, the IRS has three years to assess additional tax from the date a return is filed. However, if no return is filed or if a filed return is deemed invalid, this period does not begin. According to IRS rules, the failure to file a necessary return or filing incomplete forms might leave the statute of limitations open indefinitely for those tax years. Legal Precedents and IRS Position:

There are legal precedents indicating that incomplete or incorrect forms do not suffice to initiate the limitations period. The IRS may argue that without correct taxpayer IDs and the necessary Form 945, the filings were not accurate returns. Therefore, Mr. Q's argument that his filing of 1099s constituted a return and thus started the statute of limitations is likely unsupported if the forms were incomplete and if Form 945 was never filed. The statute of limitations might not have started at all due to these deficiencies, allowing the IRS to assess taxes and penalties beyond the usual three-year window.