Being Audited: How Long Should You Be Concerned

A tax return of about three years old (from it’s original filing date) is generally not going to be audited.

There are some Exceptions:

If you have understated your income by over 25% or more then the possibilities of an audit is extended to six years.

If the return you file is fraudulent then there is no time limitation for an audit. Tax Fraud (such as using a false Social Security Number) is conduct meant to deceive the IRS. If this is done negligently and not intentionally then it isn’t fraud. Proving fraud is up to the IRS. Because of this, the IRS seldom audits after three years even if the fraud is evident.

The time limit period for an audit (also known as a Statue of Limitations), starts to run only if and when you file a return. Nonfiled returns are always subject to an audit. If you haven’t filed a return, haven’t heard from the IRS and you are past the six year time frame then you are probably on the safe side.

Generally speaking, if you haven’t heard from the IRS 12-18 months after filing a return, then you probably wont be audited.

Final Words:

There is no better time than now to get started in catching up on filing your late returns, and getting your tax information in order again. Good luck!