Is There a Statute of Limitations on IRS Audits?
An Internal Revenue Service (IRS) audit is an unwelcome thought for most US taxpayers. Even just the idea of an audit can cause serious stress and anxiety regardless of whether you think that your returns are in good order or not. If you are at all concerned about the potential for an audit, you should know up front how long the IRS has to target your return. For many years the statute of limitations for an IRS audit was 3 years, but in the last several years, the IRS has added many exceptions that can extend this period from 3 years all the way up to 6 years.
Here are some facts you should know about the statute of limitations on audits:
1. If you omit more than 25% of your income on your tax return, then the IRS statute of limitations increases from 3 to 6 years.
2. The IRS also gets six years to audit you if you omitted more than $5,000 of foreign income (If you have interest on an overseas account, for example).
3. If you have never filed your return, the IRS does not have to abide by any statute of limitations so they can audit you anytime.
4. The IRS also has no statute of limitations if you omit certain tax forms. Plus, once an assessment is made, the IRS collection statute is usually 10 years.
5. If the IRS feels like they need more time to determine whether they should complete an audit, they may ask you to sign a form which extends the right to audit by an additional one year.
Successfully Navigating the IRS Audit Process
Audits are serious and complicated and if you are concerned that you might be the subject of one, you might want to consider getting tax support from a reputable tax firm. Success Tax Relief has helped many taxpayers prepare for and navigate an IRS audit and we can help you as well. We can review your current tax documentation to determine whether you are at risk of an audit, and if you have received a letter regarding an audit, we can manage all communication with the IRS on your behalf. We understand how stressful the process can be and our team will work to take that stress away so that you can focus on other things. We can also help you determine the statute of limitations for an IRS audit for your unique tax situation.
It is important to remember that the IRS will not call you or email you about an audit (generally calls and emails threatening an audit are scams). The IRS will communicate through a written letter with information about your audit and the process. While it might be tempting to ignore communication from the IRS about an audit, this is never advisable. It is always best to face an audit head on, so that your situation does not get any worse. Our experienced team at Success Tax Relief can help you with an audit from start to finish. Call us today at 877-825-1179 for more audit support or other tax-related assistance. You can also contact us online to schedule a free consultation.