How Far Back Can the IRS Audit?

 

There are two basic statutes of limitation.

 

First is the statute of limitations, which provides that the IRS has three years to assess an additional tax due.

For example, for a taxpayer who filed a 2012 tax return on April 15, 2013, the IRS has until April 15, 2016, to assess an additional tax.

This rule has two major exceptions. The three-year statute is extended to six years in a case where the taxpayer has omitted more than 25% of gross income.

 

Second, there is no statute of limitation in cases where no return has been filed, or where the taxpayer has filed a fraudulent return.

 

These two exceptions permit the IRS to assess an additional tax at any time.

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