Is There a Statute of Limitations on IRS Audits?

Statute of Limitations

The chances of getting audited by the IRS are extremely slim. If you make less than $200,000 a year, you only have about a 1% chance of receiving an audit notice. Typically, the IRS completes audits right after returns are filed. There are times, however, when this doesn’t happen and an audit is not pursued by the IRS for a period of time.

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When it comes to dealing with the IRS after an extended amount of time has passed, the statute of limitations can truly play an important factor. Paramount Tax Relief in Sacramento is here to explain how!

How Far Can The IRS Go Back To Audit Me?

A time limit known as the “statute of limitations” restricts the amount of time in which the IRS may initiate an audit after the filing, or due date, of a tax return, though some exceptions apply.

In most cases, the statute of limitations grants the IRS a period of up to three years in which to initiate an audit of a taxpayer. However, you should be aware that there are exceptions to this rule, and the IRS may have up to six years to send notice of their intention to perform an audit depending on your circumstances.

Here are a few of the most common reasons that the IRS can take more than three years:

  • Filing an extension actually increases the amount of time that the IRS has to initiate an audit.
  • The three-year statute of limitation is doubled to six years if the IRS discovers that a taxpayer has omitted an amount from gross income that exceeds 25% of the stated gross income.
  • There is no statute of limitations when an audit pertains to the assessment of tax if a return is false or fraudulent, reflects a willful attempt to evade taxation or when no tax return at all is filed. The IRS can audit you at any time if they suspect a fraudulent return or if you did not file at all.

Sacramento Area Tax Relief Help

If you’ve received a notice from the IRS and have questions about whether the audit is within the statute of limitations, Paramount Tax Relief is here to help. We can provide audit support and help guide you through the entire process so that you can feel confident that you are responding appropriately to the IRS. Our team in Sacramento is dedicated to giving you the tax help you need; but don’t just take our word for it, read the testimonials from some of our satisfied customers!

If you have any questions or would like to schedule a consultation, please don’t hesitate to contact Paramount Tax Relief today.

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2019-06-13T20:01:34+00:00 June 13th, 2019|
Paramount Tax Relief

Paramount Tax Relief