how far back irs can audit

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:

1. Three-year statute of limitations: The IRS can audit a tax return within three years from the date the return was filed. For example, if you filed your 2020 tax return on April 15, 2021, the IRS can audit it until April 15, 2024.
2. 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.
3. 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.
4. Extended statute of limitations: If you have signed a waiver or consent to extend the statute of limitations, the IRS can audit your return beyond the original three-year period.
5. State tax audits: Some states have a longer statute of limitations for tax audits, so even if the IRS can’t audit your federal return, your state may still be able to audit your state return.

It’s worth noting that the IRS typically focuses on auditing returns from the past two to three years, as these are more likely to result in significant tax adjustments. However, if you have a complex tax situation or have been involved in tax disputes in the past, you may be more likely to be audited, even if it’s outside the typical three-year window.

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 pay any taxes owed.
• Be honest and transparent in your tax reporting.
• Seek professional help from a tax professional or accountant if you’re unsure about any aspect of your tax return.

Remember, even if you’re audited, it’s not necessarily a bad thing. Many audits result in minor adjustments or no changes at all. However, if you’re concerned about an audit or have questions about your tax situation, it’s always best to consult with a tax professional.