Did you know the IRS typically has 3 years to audit your tax returns? Here’s what you need to know:
3-Year Rule: The IRS can audit your return for errors or fraud up to 3 years from the filing date.
No Filing, No Limit: If you don’t file your return, the audit period never starts—meaning the IRS can audit you anytime.
Key Exceptions:
6-Year Rule: Major errors (income understatement over 25%) extend the audit window to 6 years.
Fraud/No Filing: No time limit for fraudulent returns or failure to file.
Foreign Income/Inheritance: Special forms like Form 8938 and Form 3520 have their own rules. Missing these can freeze the statute of limitations.
Stay informed and ensure compliance to avoid unexpected audits!
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