Q &A

What is the statute of limitations to audit a tax return or to collect a tax?

Generally, under IRC 6501 Limitations on assessment and collection, the statute of limitations for the IRS to audit a tax return and to assess a tax is three years from when the return was filed (whether the return was or was not filed on or after the prescribed due date). Each tax assessment has a collection statute expiration date. IRC 6502, Collection after assessment, provides that the length of the period for collection after assessment of a tax liability is 10 years.

However, the statute of limitations may increase in certain situations. For example, the statute of limitations for the IRS to assess tax is six years if your client omits additional gross income in excess of 25% of the amount that should have been shown on your client’s return. The IRS may also request to extend the statute of limitations.