Hi, I'm Lawrence Lawler, national director of the American Society of Tax Problem Solvers. This series is on how to prepare for an IRS audit. The first thing that we're going to be discussing is the length of time that the IRS is able to audit your tax return, commonly referred to as the statute of limitations. The statute of limitations varies depending upon the situation the taxpayer finds themselves in. Normally, for most taxpayers, the statute runs three years. That would be three years from the due date of the tax return or the date it was actually filed, whichever is later. So if you didn't file your return on time, the three years that they are able to audit you didn't start until you actually filed it. Also, if an extension was filed, then the three years doesn't start until the extension due date. So you could have a return run from April fifteenth for three years or from October fifteenth, which is the extension due date, for three years. Or, in fact, from any other date when you actually filed the return, it would be later than those dates. They have three years in which to audit the tax return under normal situations. Obviously, every situation with the IRS is not normal. You may get into a situation where the IRS could audit the tax return for up to six years. And that usually happens when there has been a material misstatement, generally defined as twenty-five percent of income that was not reported. So at that point in time, the IRS can show that there was a material misstatement, that your income was underreported by twenty-five percent. They actually have six years in which to audit you. This does not involve fraud. It's not a case that rises to the...
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Should i sign 872 Form: What You Should Know
Tax Adviser is not required to file these forms until the deadline. This is why filing a “form 872” is useful for a wide range of non-commercial purposes, such as for the “case of the week” on IRS.gov. “Form 872” is also called “Consent to extend the time to assess.” This form may be useful in tax planning situations. “ For the most commonly needed IRS tax preparation services and publications, visit.
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