Are you concerned about getting audited by the IRS? From time to time people ask me, “How long does the IRS have to audit a taxpayer?” Generally the rule is that the IRS can audit a taxpayer going back 3 years and that’s it. If the IRS determines that a taxpayer has underreported their income by more than 25% for a given year then they can go back 6 years.
Getting audited by the IRS is a serious proposition and should not be taken lightly. The IRS conducts two types of audits, a correspondent audit and a field audit. A corresponded audit is when the IRS corresponds with the taxpayer via the US mail. A field audit is when someone with the IRS comes and visits with the taxpayer in person.
If you are notified you are going to be audited you need to get professional representation to make sure the auditor does not have free reign to ask whatever they want to. Audits need to be guided and managed. Failure to adhere to this advice is an invitation to trouble. Don’t take a chance. Call a true tax professional.