how far back can irs audit

The IRS can audit tax returns going back several years, but the exact timeframe depends on the circumstances. Here are the general guidelines:

1. Typical audit period: The IRS can audit tax returns from the past 3 years. This is the standard statute of limitations for audits.
2. Extended audit period: If the IRS suspects that you have underreported your income by 25% or more, they can extend the audit period to 6 years.
3. Unlimited audit period: If the IRS suspects that you have committed tax evasion or filed a false return, there is no statute of limitations, and they can audit your returns at any time.
4. Employment tax audits: The IRS can audit employment tax returns (e.g., Form 941) for up to 3 years, but this period can be extended to 6 years if the employer has underreported employment taxes by 25% or more.
5. State audits: State tax authorities may have different audit periods, which can range from 3 to 6 years or more, depending on the state.

It’s worth noting that the IRS typically focuses on auditing more recent tax returns, as the likelihood of errors or discrepancies is higher for more recent returns. However, if the IRS identifies a pattern of errors or suspicious activity, they may choose to audit older returns as well.

To minimize the risk of an audit, it’s essential to:

• Keep accurate and detailed records of your income, expenses, and tax-related documents.
• File your tax returns on time and accurately report your income and expenses.
• Respond promptly to any IRS notices or requests for information.
• Consider consulting a tax professional if you have complex tax situations or concerns.