When am I reasonably safe from an IRS audit?

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Toller

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Dec 8, 2021, 3:31:24 PM12/8/21
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I am sure I did my 2020 taxes properly, but there are a couple issues the IRS might want a better explanation of. While I am confident I can do that, I obviously don't want to.

At what point can I sleep better knowing it probably isn't going to happen?

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Rick

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Dec 8, 2021, 8:29:48 PM12/8/21
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"Toller" wrote in message
news:926ac9eb-6773-4479...@googlegroups.com...
>
>I am sure I did my 2020 taxes properly, but there are a couple issues the
>IRS might want a better explanation of. While I am confident I can do
>that, I obviously don't want to.
>
>At what point can I sleep better knowing it probably isn't going to happen?
>

Well if you committed fraud or, more precisely, the IRS believes you
committed fraud, I don't think there is any limit on when they can audit
you. So you'll never sleep better in that case.

But if you did the return honestly and there are just one or two minor
issues that won't have major impacts, then I would say three years from the
due date of the return, which I guess would be April 2024 assuming you
didn't file an extension. If you think there is an issue that could impact
income in a big way (more than 25% of income misstated), then probably six
years from same.

https://www.americanbar.org/groups/business_law/publications/blt/2017/08/06_wood/


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Toller

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Dec 9, 2021, 1:52:36 AM12/9/21
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On Wednesday, December 8, 2021 at 8:29:48 PM UTC-5, Rick wrote:
> "Toller" wrote in message
> news:926ac9eb-6773-4479...@googlegroups.com...
> >
> >I am sure I did my 2020 taxes properly, but there are a couple issues the
> >IRS might want a better explanation of. While I am confident I can do
> >that, I obviously don't want to.
> >
> >At what point can I sleep better knowing it probably isn't going to happen?
> >
> Well if you committed fraud or, more precisely, the IRS believes you
> committed fraud, I don't think there is any limit on when they can audit
> you. So you'll never sleep better in that case.
>
> But if you did the return honestly and there are just one or two minor
> issues that won't have major impacts, then I would say three years from the
> due date of the return, which I guess would be April 2024 assuming you
> didn't file an extension. If you think there is an issue that could impact
> income in a big way (more than 25% of income misstated), then probably six
> years from same.
>
I am sure I did it properly, so no fraud and not more than 10% of my income...

I am familiar with the legal time limits involved... I meant more as a practical matter. I presume it goes through their computer and kicks out anything suspicious, which they might follow up on. And if that hasn't happened by XXX, it isn't likely to. I am wondering what date XXX might be.
But perhaps I just don't understand the process.

I only had an issue once. NYS took exception to my deductions. I sent them 150 pages of receipts and never heard back from them.

Rick

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Dec 9, 2021, 11:49:05 AM12/9/21
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"Toller" wrote in message
news:93c03e97-0b93-4a2d...@googlegroups.com...
When I have had inquiries from the IRS about a return, it usually happened
within a year or two of the filing date. The one time I actually had an
audit, that was also within two years of filing date.

But in the Covid world with all the cutbacks and people working from home,
etc., the IRS has really been later than usual in registering returns. In
my case, although I filed my 2020 return on time, it didn't show up on their
website as processed until literally into 2021. I think you probably need
to give it the full three years before you can stop worrying.
--

Maria Ku

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Dec 9, 2021, 3:01:17 PM12/9/21
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State may have different statutes of limitation from the Fed.
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