Question:   How many years back can the IRS audit my tax returns?

Answer:  It depends.  First, there is no limitation if the taxpayer fails to file a tax return or commits fraud.  6 years is the answer for any return that omits 25% of more of the taxpayer’s income.  Absent the situations in the two previous sentences, 3 years is generally the answer.

Feel free to contact me if you or someone you know has this type of situation.  Tax laws can be tricky; thus, the above answer cannot be applied to all circumstances because the slightest variation could cause a different outcome.