IRS Vows to Do Better (Auditing Additional Years of Your Income)
What does this mean to you? If you are the unfortunate target of an IRS audit (whether by random chance or other criteria), and they find such reporting errors, it is more likely than ever that the IRS will open the additional years to find more common reporting errors. Statistics show that the IRS has been typically skating close to its statute of limitations on its audits (which carry a 3 year statute of limitations). These limitations periods do not apply if the IRS determines that the return is fraudulent.
For more information on the statute of limitations and preparing for an audit, see our FAQ section on this topic.