Can the IRS Still Come After You for Tax Cheating 7 Years Ago?
When it comes to tax compliance, many individuals feel it is outside the scope ofgetCurrentYear() - 6 years. However, the rules are not always as straightforward as they might seem. If you find yourself questioning whether the IRS can still pursue you for tax cheating from 7 years ago, understanding the nuances of tax law and IRS policies is crucial to addressing your concerns.
Understanding the 3-Year Rule
The IRS, having a reputation for thoroughness, generally backs off after 3 years from your latest tax filing. This means that if you filed your tax return for 2015 in 2016, the IRS can only audit those returns from 2013, 2014, and 2015. Some individuals mistakenly believe the period is 6 years, but this is not uniform across all circumstances.
Special Cases and Exceptions
There are certain special cases and exceptions that can extend the IRS' auditing period. If you have failed to file a required form, the IRS can audit for as long as needed. Additionally, if you have committed fraud, the IRS can potentially go back 30 years or even longer to investigate your tax filings.
The Role of Tax Audits and Investigations
The IRS relies on a combination of automated systems and human resources to identify potential tax issues. While IRS employees are indeed busy, they are trained to quickly identify discrepancies and errors that require further investigation. You might be surprised that an error from 7 years ago was never caught, given the thoroughness of IRS systems. However, there are instances where errors might slip through the cracks.
Statute of Limitations and Fraud
Caution should be taken when discussing the statute of limitations. The rule of 3 years from the date of filing does not apply in cases of fraud. The IRS argues that fraudulent returns are not valid, so the statute of limitations does not start running. This means the IRS can still pursue fraud cases even if the statute of limitations otherwise expired.
In practical terms, while the IRS has limited resources to investigate old returns without specific triggers (such as a tax preparer caught in fraud or a scheme deemed fraudulent), they will investigate if there is a valid reason to do so.
Compliance and Online Resources
To check the status of your tax account, you can do so online via the IRS website. No need to worry about triggering any flags; you can view information about your account without the IRS taking further action.
For those who are not tax experts, consulting with a good tax attorney is always a wise move. They can provide tailored advice and help navigate the complexities of tax law.
Conclusion
While the 3-year rule is the general guideline, it's important to remember that the IRS can extend its reach in specific circumstances. If you suspect or have been notified that the IRS is investigating your tax affairs, it's crucial to understand your rights and the potential actions the IRS can take. Seeking professional advice can help you handle these situations effectively.
Note: The content here is for general information and does not constitute legal advice. Always consult with a tax professional for guidance specific to your situation.