09/07/2022 – IRS Audit Period Could Extend Beyond 3 Years

09/07/2022 – IRS Audit Period Could Extend Beyond 3 Years: Contents

Can the Standard IRS 3-Year Audit Period Be Extended?

We’ve all heard talk about the 87,000 new IRS agents on the way as a result of the Inflation Reduction Act.  Many people feel that the massive influx of new IRS agents over the next 10 years will trigger an uptick in IRS audits.  According to an article by Robert W. Wood in Forbes today, entitled “IRS Audits With No Time Limit And No Statute of Limitations”, the basic timeline for exposure to an IRS audit is three years from the date you file your return (if properly filed).  But this basic three-year period can be extended to six years under certain circumstances.  Mr. Wood goes on to say:

“For example, the usual three years is doubled to six if you omitted more than 25% of your income. If you overstate your cost basis on something you sell, that counts too. So if it has the effect of understating your income by more than 25%, the IRS gets six years. The three years is also doubled if you omitted more than $5,000 of foreign income (say, interest on an overseas account), even if you disclosed the account!”

Click here to read the full article:  IRS Audits With No Time Limit And No Statute Of Limitations (forbes.com).

en_USEnglish
Skip to content