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statute of limitations definition - finance
  1. A legal time limit, after which certain types of lawsuits may not be filed.
  2. A time limit, after which a government agency may not pursue certain regulatory actions. For example, the Internal Revenue Service (IRS) has three years to audit tax returns and assess back taxes if mistakes are found; however, that statute of limitations doesnÂ’t apply in cases of fraud.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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