Some Info About IRS Audits

IRS Audit statute of limitations

                                   IRS tax audits

The Internal Revenue Service (IRS) can request an audit anytime during a period of three years from the date of taxpayer’s return. The IRS can demand the tax records for the last six years if considerable tax mistakes are found.


The taxpayers that IRS will audit are selected using a software program making use of parameters that will identify the high-risk taxpayers who have a probability of underpaying their taxes. This software will determine which citizens pay their taxes properly and who do not.

IRS audit location

The IRS can perform the audits either through mail or in person. If mailing the receipts and tax records are an arduous task, then tax payers can request the IRS to conduct an in person audit. In person audits may be performed either at your office or at your personal residence. Generally, this is done in your office where the tax records are maintained. In case the IRS requires additional information such as proof of income or receipt of payment of expenses, taxpayers will be notified of it well in advance.

IRS audit statute of limitations:

As per IRS recommendations, taxpayers are advised to maintain personal tax information and records for six years, starting from the date on which it was filed. Additionally, business tax returns should be retained for the period of transaction plus another three years. Usually, after a tax return is filed, the IRS attempts to schedule an audit at the earliest possible date. The IRS statute of limitations for collecting tax liabilities is ten-year duration from the date on which it was filed. Prior to implementing the new regulations, the IRS requested extensions from taxpayers to extend this period of limitations. These extensions can no longer be used for tolling purposes.


Internal Revenue Service

                  Statute of limitations for IRS audits

Individuals can deny the IRS’ request to extend the IRS audit statute of limitations, but in such a case, the IRS will prepare the final audit determinations based on incomplete tax information.

These are some aspects regarding the IRS tax audits and their statute of limitations. Tax laws undergo a constant change and so it would be best to consult your accountant and talk to an experienced attorney or a competent tax professional to assist you through the audits. You can also go through online legal resources to know the present laws.