How Far Back Can the IRS Audit?

by Jill Bridges on October 30, 2018  0 Comment

If you're like most taxpayers, you dread the possibility of undergoing an audit by the Internal Revenue Service (IRS). No matter how careful you are about filing and paying your taxes, it's still possible to make a mistake, and an error on your return may result in an IRS audit.Even if you're familiar with the audit process, it's likely that you still have some questions about this issue, including how far back the IRS can audit. Here is some information to help you understand how far back the IRS can audit you, and how you should respond if you find yourself dealing with back taxes.Audit Statute of LimitationsAs a taxpayer, it's important to understand that there is ...

How Long the IRS Can Look Back to Audit Mistakes?

by Shannon McKee on October 30, 2018  0 Comment

Filing your tax return to the IRS can be an absurdly arcane process depending on who you are. Business owners, people with foreign assets, and even charity contributors all seem to have extra hoops to jump through to satisfy the IRS. It is not surprising that people make audit mistakes under those circumstances. In some cases, these mistakes can result in you understating your income, which is the best way to get on the IRS's bad books. With that said, what is the statute of limitation for an IRS audit? Standard Procedure You have been notified that the IRS suspects that your banking activities are not entirely on the up and up. Given that the issue is only a minor ...