The IRS generally has 3 years from the later of the tax return's due date or the date it was filed to initiate an audit. This means for most taxpayers, the IRS can audit tax returns filed within the past three years
. However, there are important exceptions that can extend this period:
- If you underreport income by more than 25% , the IRS can extend the audit window to 6 years
- If you fail to report foreign income over $5,000, the 6-year rule also applies
- If you never filed a tax return , or filed a fraudulent return, the IRS can audit indefinitely with no statute of limitations
- If you forgot to sign your return, it may be considered not filed, also allowing indefinite audit
In practice, most audits are started within 2 years of filing and are completed within a year, with IRS guidelines recommending audits be opened and closed within 26 months of filing or due date
Summary:
Situation| IRS Audit Look-Back Period
---|---
Normal returns| 3 years
Underreporting income >25% or missing foreign income >$5,000| 6 years
No return filed or fraudulent return| No time limit (indefinite)
Good record-keeping for at least 7 years is advised to support your filings in case of audit
. In essence, the IRS can audit you back 3 years in most cases, 6 years if significant underreporting is found, and indefinitely if fraud or no return filing is involved.
