No individual or business owner wants to be audited by the Internal Revenue Service. Tax returns are complicated enough to file, and the idea that the IRS can come back and launch a thorough investigation into those documents and financial accounts can lead to considerable fear, intimidation and anxiety.
However, the IRS can and does audit taxes for people all across Atlanta every year. Many people take some comfort in knowing that the IRS only has a specific amount of time to audit taxes. Unfortunately, this time limit was recently extended from three years to six years.
What this means is that the IRS now has the power to audit six years after taxes have been filed. Do you remember every form and financial record you included with your taxes six years ago? You are certainly not alone if you do not.
In order to audit taxes from six years ago, certain exceptions need to be met by the IRS. In previous years, these exceptions were less common and more narrowly defined. This year, however, those exceptions have been expanded making it more likely that the statute of limitations will be increased to six years.
Those exceptions, which are discussed more thoroughly in this Forbes article, involve elements such as higher levels of omitted income.
Being audited, whether it is for taxes filed a year or five years ago, can be very frightening. In some cases, you will only have to answer questions or provide clarification for issues the IRS has come across during an audit. In other cases, you will have to submit supporting evidence and documentation and meet with IRS agents.
No matter how you are expected to respond to an audit, it can be crucial that you understand your rights and have the support and guidance of an attorney to help you through the process.