Expiration of Statute of Limitations

COLLECTION

The I.R.S. has a 10 year period starting from the date of assessment to collect taxes, penalties and interest. Thus, it is possible that you will not owe the I.R.S. after that 10 year period has expired. You should verify the assessment date, so you can compute when this period passed.

AUDIT

The I.R.S. has 3 years to Audit your tax return, from the date the return was filed. However, if the I.R.S. determines that you have a 25% understatement of income in a year, they can also audit the last 6 years.

Furthermore, if the I.R.S. claims fraud or other criminal activity, the statute will be open for an indefinite period and the I.R.S. can go back as far as they want.