What the IRS Statute of Limitations Means for You?

As a taxpayer, you know how important it is to stay on top of your taxes and make sure you’re filing and paying them correctly and on time. But what happens if you don’t? The IRS has a statute of limitations in place that limits how far back they can go to audit you and collect taxes.

In this guide, you will learn about this statute of limitations and how it can affect you as a taxpayer. And if you determine that you need legal assistance, we can help. At the Law Office of Mary E. King, Mary has over 30 years of experience representing taxpayers before the IRS. She can help you resolve your tax issues and get you back on track.

What Is the IRS Statute of Limitations?

The IRS statute of limitations is the amount of time the IRS has to collect on unpaid taxes. The statute of limitations begins to run from the date your tax return is due or the date it was actually filed, whichever is later. 

For most taxpayers, the statute of limitations is 10 years. That said, there are a few situations that could cause an extension of the statute of limitations, such as if you file a fraudulent return or if you don’t file a return at all. 

The statute of limitations is important to know because it puts a limit on how far back the IRS can go to collect on unpaid taxes. Once the statute of limitations expires, the IRS can no longer take legal action to collect the taxes you owe. 

However, that doesn’t mean you don’t have to pay your taxes. The IRS can still require you to pay your outstanding taxes, even after the statute of limitations has expired. They just can’t take legal action to collect the debt. 

If you’re struggling to pay your taxes, it’s important to seek help before the statute of limitations expires. There are a number of options available to help you pay your taxes, including payment plans and offers in compromise. 

Don’t let the IRS statute of limitations stop you from getting the help you need to pay your taxes. Seek out professional help and explore all of your options. With the right assistance, you can find a way to pay your taxes and get back on track.

What Triggers the Statute of Limitations?

The IRS Statute of Limitations is triggered when someone either fails to file a tax return, files a false return, or fails to pay taxes owed. If you do not file a tax return, you will be expected to pay tax on your income in the same way that everyone else does. 

Can You Still Be Audited Even After the Statute of Limitations Runs Out?

Yes. The IRS can audit you at any time, even after the Statute of Limitations has expired. If the IRS discovers that you failed to file a return or owe taxes, they can audit you for up to 10 years after the date on which the return was due. But if the IRS discovers that you failed to file a tax return, they may still audit you even if the Statute of Limitations expired years ago. 

You can request an “adjustment” of your taxes at any time, meaning that you can request that the IRS reviews your tax return and adjusts your tax bill. If there is an error with your tax return, the error will not be corrected retroactively. Be sure to contact a tax expert like Mary King if you have questions.

3 Strategies to Avoid an Audit After the Statute of Limitations Has Ended

It’s important to take steps to ensure you aren’t audited in the future. Here are some strategies to help you stay on top of your tax obligations:

1. Keep Thorough Records: If you are worried that the Statute of Limitations will expire before you file a tax return, you should keep thorough records of all of your income and expenses. Having all of this information on hand will make it much easier to file a tax return, even after a delay.

2. Use Software to File Your Taxes: It is highly recommended that you use software to file your taxes, even if you are expecting a delay in filing. This will help you avoid any errors and ensure that your tax return is filed correctly. 

Moreover, filing your taxes online can help you avoid mistakes that could trigger an audit. There are a number of software programs available that can help you file your taxes accurately and efficiently.

3. Get Professional Help: If you’re worried about being audited, it may be worth it to get professional help. A tax professional can help you make sure you are complying with all of the rules and regulations. They can also help you understand your rights and options if you are audited.

4. Avoid Declaring Too Little on Your Tax Return: One of the quickest ways to invite an audit is by declaring too little income on your tax return. Be sure to report all of your income, even if it’s from sources that are difficult to track. The IRS has many tools at its disposal to catch people who underreport their income, so it’s not worth the risk.

The IRS Statute of Limitations is an important rule to be aware of, but it’s not the only thing you need to worry about when it comes to your taxes. Taking steps to avoid an audit in the first place is always the best strategy. With a little planning and preparation, you can reduce your risk of being audited by the IRS.

Call The Law Offices of Mary King Today

The IRS Statute of Limitations can be a complex rule, but it’s important to understand how it works. If you have questions about the Statute of Limitations or your rights, contact The Law Offices of Mary King for help. We can provide you with the guidance you need to ensure your rights are protected. Call us today at 941-906-7585 to schedule a consultation.

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.