ASED stands for assessment statute expiration date.  It is the time limit or statute of limitations that the IRS has to place additional taxes on their books.  If the IRS fails to make the assessment within the appropriate time period it is barred from collecting the taxes.  Generally, the ASED is three years from the date a tax return is filed.  However, the ASED can be extended in a number of situations including:

•    Tax Fraud
•    Agreement by the taxpayer and the IRS
•    Omission of more than 25% of gross income from a tax return
•    Bankruptcy of the taxpayer