The statute of limitations has always been 7 years. Three years if no funny business is suspected, and 7 years if it is. So I have always kept my full back records for 7 years.
If they are serious about this one, all hell will break loose. Because I would imagine that 99% of taxpayers have been following the law and keeping their records for 7 years.
This crowd really keeps you on your toes, doesn't it.
Likely just more chaff thrown up by the nobama bunch to add one more log to the bonfire of uncertainty. How the heck can they just toss out established law? Answer, they can try, but they can’t make it stick.
There are three federal statutes of limitations for civil tax audits: (1) 3 years from filing, normally; (2) 6 years from filing if you omit 25% or more of your gross income; or (3) no time limit at all if you never file a return, or if the IRS proves fraud by "clear & convincing" evidence.
The statute of limitaions for a criminal prosecution under the Internal Revenue Code is 6 years from the last criminal act.