how far back can irs go
The IRS (Internal Revenue Service) has a statute of limitations for auditing and collecting taxes, which varies depending on the situation. Here are some general guidelines:
Audit Statute of Limitations:
- The IRS typically has 3 years from the date you filed your tax return to initiate an audit. This is known as the "3-year rule."
- If you omitted more than 25% of your gross income from your tax return, the IRS has 6 years to initiate an audit.
- If you filed a fraudulent tax return or failed to file a tax return, there is no statute of limitations, and the IRS can audit you at any time.
Collection Statute of Limitations:
- The IRS has 10 years from the date of assessment (when the tax was first due) to collect unpaid taxes. This is known as the "10-year rule."
- If you file for bankruptcy or make an offer in compromise, the 10-year clock may be temporarily suspended.
- If you owe taxes and the IRS has not collected them within the 10-year period, the debt is generally considered uncollectible, and the IRS will write it off.
Exceptions:
- If you sign a waiver or consent to extend the statute of limitations, the IRS can audit or collect taxes beyond the normal time limits.
- If you are under audit or examination, the IRS may request that you sign a waiver to extend the statute of limitations.
- If you have unreported foreign income or assets, the IRS may have additional time to audit or collect taxes.
Keep in mind that these are general guidelines, and the IRS may have more time to audit or collect taxes in certain situations. If you have concerns about your tax situation, it’s always best to consult with a tax professional or the IRS directly.
