How Far Back Can the IRS Audit?

The IRS has the authority to audit tax returns for up to three years after the filing date, or two years after the tax was paid, whichever is later. However, there are some exceptions to this rule.

Exceptions to the Statute of Limitations

Fraudulent returns: If the IRS believes that you have filed a fraudulent return, they can audit you indefinitely.
Omissions of more than 25% of income: If you omit more than 25% of your income from your return, the IRS can audit you for up to six years.
Failure to file a return: If you fail to file a return, the IRS can audit you indefinitely.

What to Do If You’re Audited

If you’re audited, it’s important to respond promptly and cooperate with the IRS. You should gather all of your tax records and be prepared to answer questions about your return.

Here are some tips for preparing for an audit:

Keep accurate records: Keep all of your tax records for at least three years after the filing date. This includes receipts, bank statements, and any other documents that support your return.
File your returns on time: Filing your returns on time will help you avoid the risk of an audit. If you can’t file on time, file an extension.
Be honest on your returns: Don’t try to hide income or deduct expenses that you don’t qualify for. If you make a mistake on your return, file an amended return as soon as possible.

If you’re audited, don’t panic. Just follow these tips and you’ll be able to get through it successfully.

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