how far back can you be audited

The length of time for which you can be audited varies depending on the country, state, or province you are in, as well as the type of tax or financial activity being audited. Here are some general guidelines:

United States:

• The Internal Revenue Service (IRS) typically has a 3-year statute of limitations for auditing individual tax returns, starting from the date the return was filed or the due date, whichever is later.
• For businesses, the statute of limitations is also 3 years, but it can be extended to 6 years if the business has a substantial understatement of income (more than 25% of gross income).
• If the IRS suspects tax evasion or willful failure to file a return, there is no statute of limitations, and the agency can audit at any time.

Canada:

• The Canada Revenue Agency (CRA) typically has a 3-year statute of limitations for auditing individual tax returns, starting from the date the return was filed or the due date, whichever is later.
• For businesses, the statute of limitations is also 3 years, but it can be extended to 6 years if the business has a substantial understatement of income (more than 10% of gross income).
• If the CRA suspects tax evasion or willful failure to file a return, there is no statute of limitations, and the agency can audit at any time.

United Kingdom:

• HM Revenue & Customs (HMRC) typically has a 4-year statute of limitations for auditing individual tax returns, starting from the end of the tax year.
• For businesses, the statute of limitations is also 4 years, but it can be extended to 6 years if the business has a substantial understatement of income (more than 25% of gross income).
• If HMRC suspects tax evasion or willful failure to file a return, there is no statute of limitations, and the agency can audit at any time.

Australia:

• The Australian Taxation Office (ATO) typically has a 2-year statute of limitations for auditing individual tax returns, starting from the date the return was filed or the due date, whichever is later.
• For businesses, the statute of limitations is also 2 years, but it can be extended to 4 years if the business has a substantial understatement of income (more than 20% of gross income).
• If the ATO suspects tax evasion or willful failure to file a return, there is no statute of limitations, and the agency can audit at any time.

It’s essential to note that these are general guidelines, and the specific rules and regulations may vary depending on your location and circumstances. It’s always a good idea to consult with a tax professional or financial advisor to ensure you are in compliance with all tax laws and regulations.