Posted on 01/20/2016 1:40:46 PM PST by Nachum
No one wants to be audited, so knowing how long your tax return can be attacked is important. The statute of limitations on taxes is a fundamental rule allowing taxpayers to eventually cut off their exposure. It can be pretty satisfying to say to the IRS, “sorry, you’re too late.†But this year, that will be a little harder due to an expansion of the IRS’s power to audit for extra years.
Traditionally, the primary IRS statute of limitations was three years. But there are many exceptions that give the IRS six years or longer. Several of those exceptions are more prevalent today, and one of them has gotten bigger, despite a decision by the U.S. Supreme Court.
(Excerpt) Read more at taxes.yahoo.com ...
Dang. I didn’t know it was only 3. I thought it was 7 and kept the files that long. Does that mean we only need to keep 6 years now?
The list, Ping
Let me know if you would like to be on or off the ping list
Well lets hope we get a Republican President in office for the next 8.
That was my understanding exactly.
Is this 6 year period retroactive?
Cute.
And Congress (Ryan, Boehner, McConnell and their GROPe minions) went right alone for the ride!
From the story:
“In U.S. v. Home Concrete & Supply, LLC, the Supreme Court slapped down the IRS, holding that overstating your basis is not the same as omitting income. The Court said 3 years was plenty for the IRS to audit. But Congress recently overruled the Supreme Court and gave the IRS six years in such a case.”
IRS can KMA.
I believe there is no “statute of limitations” for auditing tax returns. The IRS can go back many years and audit a return, for all practical purposes, and force a taxpayer to pay unpaid taxes, interest and penalties. The statutes of limitations as I understand them relate to criminal prosecution for tax evasion (3 years), tax fraud (6 years), and failure to file a return (no statute of limitations).
This is on Congress.
Good question. Wouldn't this fall under 'ex post facto' if true?
It can be longer than 3 years BUT I was told they would have to prove fraud.
Boy, am I glad we have a Republican Congress that is committed to a smaller and less invasive government.
Really, I couldn’t care less if Republicans all got bounced from Congress. Worthless.
Oh no! My 2010 tax returns were the worst. I think I may have cheated Uncle Sam out of like $50. Meanwhile Hillary and Bill....................................
Trump hasn't said sh!t about getting rid of the IRS. Cruz wants to abolish the son-of-a-bitch.
I say abolish it and let the employees starve and freeze in the dark. F EM!
I was always taught to keep old tax records for seven years.
I have all my paycheck stubs and tax form still from 1993, now with this I’ll just hold on to them until the Lord calls me home.
“I thought it was 7”
I always heard 3 years, but 7 if there was actual fraud.
The criminal statute of limitations on tax crimes (whether for failure to file or tax evasion) is 6 years. The civil statute of limitations is ordinarily 3 years, but is extended to 6 years if you omit 25% of gross income, and there is no civil statute of limitations if no return was filed or if the IRS can prove fraud.
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