The IRS generally can't come after taxpayers indefinitely to audit tax returns from prior years. Per Section 6501 of the tax code, the IRS has 3 years from the later of (1) the filing of a tax return or (2) the unextended due date of the tax return to assess a tax deficiency.
However, if the taxpayer omitted gross income that exceeds 25% of the gross income reported, the statute of limitations is 6 years. And if the taxpayer filed a fraudulent tax return (or if the taxpayer didn't file a tax return at all) then there is no statute of limitations.
If the IRS and the taxpayer mutually agree, the statute of limitations can be extended by filing Form 872.
—
Edspira is the creation of Michael McLaughlin, an awardwinning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a highquality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44PAGE GUIDE TO U.S. TAXATION
• A 75PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* http://eepurl.com/dIaa5z
—
SUPPORT EDSPIRA ON PATREON
* / prof_mclaughlin
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSETLIABILITY MANAGEMENT
* https://edspira.thinkific.com
—
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: https://podcasts.apple.com/us/podcast...
* Spotify: https://open.spotify.com/show/4WaNTqV...
* Website: https://www.edspira.com/podcast2/
—
GET TAX TIPS ON TIKTOK
* / prof_mclaughlin
—
ACCESS INDEX OF VIDEOS
* https://www.edspira.com/index
—
CONNECT WITH EDSPIRA
* Facebook: / edspira
* Instagram: / edspiradotcom
* LinkedIn: / edspira
—
CONNECT WITH MICHAEL
* Twitter: / prof_mclaughlin
* LinkedIn: / profmichaelmclaughlin
—
ABOUT EDSPIRA AND ITS CREATOR
* https://www.edspira.com/about/
* https://michaelmclaughlin.com