How Far Back Can the IRS Audit You? The Statute of Limitations, Explained
Plenty of people hang on to old tax records for a decade or more, mostly because nobody ever tells them when it’s safe to throw anything out. If you’ve ever hesitated over a shredder with an old return in your hand, you know the question this article answers. What settles it is a rule called the statute of limitations. For most taxpayers that window is shorter than you might guess, though a few exceptions can stretch it out for years.
The Three-Year Rule Everyone Starts With
The baseline rule gives the IRS three years to audit a return and assess any extra tax it believes is owed. The countdown starts on the day you file, and filing early doesn’t move it up, because an early return is treated as filed on its due date, which means a February filing buys you nothing in terms of an earlier finish. Put real … Read the rest
