IRS Audit Attorney

Statute Of Limitations & Exceptions For IRS Audits Explained


The IRS has the ability to audit you at any time. It is part of their job to make sure that tax laws are being followed. Depending on the type of audit, they will look at different things. 

For example, they may look at your tax return and see if you over-reported your income or under-reported your expenses. They may also look at your business and see if you reported all of your income. In other words, the type of audit the IRS conducts is dependent upon the information they have at the time. 

While audits can be stressful, they can also help you to become more compliant with the tax laws in the future. If you receive a letter from the IRS asking you to participate in an audit, you are not alone. Many Americans get audited by the IRS each year.

But it’s how you address the audit that can make all the difference. At the Law Offices of Mary King, we specialize in representing clients who have to deal with the IRS. In fact, Mary has been doing just that in a legal capacity for more than 30 years.

As such, you can trust that you will receive exceptional legal counsel for all of your IRS matters. So get in touch with IRS Audit Attorney Mary King today to ensure that your audit goes smoothly.

What Is a Tax Audit?

A tax audit is an investigation into someone’s tax returns by the IRS. The IRS is responsible for enforcing tax law and the rules surrounding income taxes. When it comes to your return, the IRS is your partner. They work very hard to make sure that everyone is complying with the tax laws. However, the IRS can only do this if they have the correct information. That is where audits come in.

The IRS determines if you should be audited by checking your tax return information against tax databases. They may also ask you to provide additional information. For example, if you live outside the United States, you may be asked for your passport or alien registration number.

The information you provide is used to ensure that you are who you say you are. The information is then compared against government records to see if you are eligible for an audit.

What Is the Statute of Limitations on an IRS Tax Audit?

The IRS usually has 3 years to audit you. That’s because Federal tax statutes of limitations run 3 years from the date you file your tax returns. If you file your tax return by April 15, but before the due date (not the filing date), the statute will run exactly 3 years from the due date. 

You can get an extension until October 15 if you need it. The statute will run 3 years from the date you actually filed the tax return late. The IRS can extend the statute for 6 years (or more) by a variety of exceptions, as discussed below.

For large understatements of income, the IRS has 6 years. If your return contains a substantial underestimate of income, it means you have deducted more than 25% of your gross income. Imagine that you earn $200,000 and only report $140,000. 

If you have omitted more than 25% of your income, you could be audited for up to 6 years. You might have misunderstood or reported relying on good arguments that the $60,000 extra was not your income. 

Although the 6-year statute is in effect, the IRS can argue that your $60,000 omission was fraudulent. The IRS has unlimited audit rights if this happens. What about omissions of income but exaggerated deductions? If the underpayment of taxes was caused by an overstatement or credit of deductions, the 6-year statute does not apply.

Moreover, the IRS can only audit you if you are accused of wrongdoing. This means that the government cannot audit you if you simply disagree with their tax policies. For example, the IRS cannot audit you if you are a vocal opponent of the tax laws. They also cannot audit you if you are a member of a tax protest organization.

Exceptions to the Statute of Limitations on an IRS Tax Audit

Despite these limitations, the IRS is still able to audit you for some crimes that fall outside the statute of limitations. As such, the government can still audit you if you’re breaking the law.

Bottom Line: The IRS can audit you at any time, regardless of how long it’s been since you filed your taxes. If this happens to you, it’s vital that you speak with an experienced IRS Audit Attorney in Sarasota, Florida to assist you throughout the process.

How to Avoid an IRS Tax Audit

If you receive a letter from the IRS stating that you are under audit, do not panic. Audits are not always a bad thing. As long as you have the appropriate documentation to prove your case, you have nothing to worry about.

To help you avoid getting audited by the IRS, you might consider:

1. Consulting an IRS Audit Attorney
2. Paying your taxes on time and in full
3. Filing an extension on your taxes
4. Contesting the tax assessment if you believe that you do not owe the amount that is being demanded

By consulting with an experienced IRS Audit Attorney, you can be sure to stay on top of your taxes and file them correctly and on time.

Contact IRS Audit Attorney Mary King Today

IRS Audit Attorney Mary King from the Law Offices of Mary E. King can assist you in all of your tax matters. To set up a consultation with her, call 941-906-7585 or submit this contact form.

The information in this blog post is for reference only and not legal advice. As such, you should not decide whether to contact a lawyer based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.

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