Friday, March 20, 2009

Audited! How Long Does The IRS Have?

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.


Joe & Kim said...

I don't think you answered the question. How long (after you have filed your tax return) does the IRS have to notify you that they have a problem with your return? As executor for my Dad's estate, I filed all of his personal and business tax returns 2 years ago this month. Can you tell me if their is a time limit for the IRS to notify me that they intend to audit these returns. I would like to stop paying a storage fee for all of his personal and business records just as soon as I can. Thank you kindly, Kim

JESSO said...

Here is another question. How long after an initial audit does the auditor have to get back to you with the audit results? Are IRS auditors to request a "mutual commitment date?" I was audited on a Tuesday over a month ago. She said she would call me the Thurs. after the audit, but never did. I told her I wanted things resolved quickly and still haven't heard from her. What should I do?