Some Info On IRS Audits Statute Of Limitations

IRS audit statute of limitations

                 Statute of limitations for IRS audits

Every year, the Internal Revenue Service or the IRS examines or audits thousands of returns to substantiate the information provided in the tax returns. The returns that are audited are selected either via computer algorithms or they may be selected based on some income information that was received subsequent to filing the tax return. Even though the IRS is authorized to ensure the accuracy of the returns, there are certain rules that restrict the period within which the agency can take action. Read on to understand the various aspects about the IRS audits and its statute of limitations.

The facts

The IRS audit statute of limitations for tax returns is three years and for collecting owed taxes is ten years. The statute of limitations starts on April 15 for tax returns filed before the April 15 deadline and for returns that are filed after the April 15 deadline, the statute of limitations starts from the date on which it was filed.


For taxpayers who file a fraudulent return or a false return, the three-year IRS audit statute of limitations is not applicable. Besides, unfiled returns may be assessed tax or alternatively, the taxpayer can be taken to court to collect tax prior to assessment.


The IRS may request you to extend your statute of limitations for a tax assessment that was the result of an audit in certain situations. For instance, IRS may ask taxpayers who request a Partial Payment Installment Agreement to sign a waiver in order to extend the statute in return for a deduction in their monthly repayment amount.

Appeal rights

Taxpayers are entitled to appeal any tax collection or tax assessment within 30 days of the assessment. Taxpayers can choose either a Collection Due Process (CDP) hearing or a Collection Appeals Program (CAP) hearing. Either you can download forms online or you can request it via mail.


Tax returns

                  Statute of limitations for tax returns

Taxpayers who ignore the audit determination while they are within the statute of limitations may be assessed either a lien or a levy on their property. A levy is a legal seizure of your property while a lien only secures the IRS’ interest in your property against that of other creditors.

That was some information regarding the IRS audits. Consult your accountant or an experienced attorney for a better understanding. For more info on the same, refer online legal resources.