how far back can irs audit taxes

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

1. Typical audit period: The IRS typically has three years from the date you filed your tax return to initiate an audit. This is known as the "statute of limitations." For example, if you filed your 2020 tax return on April 15, 2021, the IRS would have until April 15, 2024, to initiate an audit.
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 six years from the date you filed your tax return.
3. No statute of limitations: If the IRS suspects that you have committed tax evasion or filed a false tax return, there is no statute of limitations. The IRS can audit your taxes at any time, even if it’s been 10 or 20 years since you filed the return.
4. Amended returns: If you file an amended tax return (Form 1040X), the IRS has three years from the date you filed the amended return to initiate an audit.
5. State audits: State tax authorities may have different audit periods, which can range from three to six years or more, depending on the state.

It’s worth noting that the IRS typically focuses on auditing tax returns from the past two to three years, as these returns are more likely to have errors or discrepancies. However, if you’re selected for an audit, it’s essential to cooperate with the IRS and provide the necessary documentation to support your tax return.

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

• Keep accurate and detailed records of your income, expenses, and tax-related documents.
• File your tax return on time and pay any taxes owed.
• Report all income, including income from freelance work, investments, or other sources.
• Avoid claiming excessive deductions or credits.
• Consult with a tax professional if you’re unsure about any aspect of your tax return.