how far can irs audit go back
The IRS (Internal Revenue Service) has a statute of limitations for auditing tax returns, which is typically three years from the date the return was filed. However, there are some exceptions that can extend this period:
- Three-year statute of limitations: The IRS can audit a tax return within three years from the date it was filed. For example, if you filed your 2020 tax return on April 15, 2021, the IRS can audit it until April 15, 2024.
- Six-year statute of limitations: If the IRS suspects that you have underreported your income by 25% or more, they can extend the audit period to six years.
- No statute of limitations: If the IRS suspects that you have committed tax evasion or filed a false return, there is no statute of limitations for an audit.
- Unfiled tax returns: If you have not filed a tax return, the IRS can audit you at any time, as there is no statute of limitations for unfiled returns.
- Amended returns: If you file an amended return, the IRS can audit it within three years from the date the amended return was filed, or two years from the date the tax was paid, whichever is later.
It’s worth noting that even if the statute of limitations has expired, the IRS can still audit you if:
- You agree to extend the statute of limitations.
- You file an amended return that shows a significant increase in tax liability.
- The IRS has already started an audit before the statute of limitations expired.
To minimize the risk of an audit, it’s essential to:
- File your tax returns accurately and on time.
- Keep accurate records and documentation to support your tax returns.
- Respond promptly to any IRS notices or requests for information.
If you are audited, it’s recommended that you seek the help of a tax professional or attorney to represent you and ensure your rights are protected.
