The IRS Can’t Audit Me after 6 Years, Right? Wrong…

It would be great if we were 100 percent certain that once we file our taxes that that is it. But, alas, the IRS has other plans.

At Risk for Audit

The IRS typically has three years to audit, though, in some circumstances, they have six years. It’s good to keep track of these years so you’ll know when you’re free and clear … but are you actually free? In some cases, the unfortunate answer is No.

In certain situations, the IRS can audit you forever.

Forever Audit Situations

There are a number of circumstances under which the IRS has an indefinite amount of time to perform an audit. You don’t want to make these mistakes (or intentional actions):

  • You don’t sign your tax return.
  • You change the penalties of perjury language.
  • You miss extra filings related to offshore accounts.
  • You, as a U.S. shareholder, own part of a foreign corporation but don’t file form 5471.
  • That last one comes with other penalties too, such as $10,000 per missing form. There are also penalties if you file late or the form is inaccurate or incomplete.

    Tax Protestor?

    There are many people who don’t agree with paying certain taxes, or taxes at all, and may intentionally make changes or mistakes to their tax return, including not signing, altering the penalties of perjury language and/or not paying the appropriate amount of taxes. But intentional mistakes on your tax return can not only result in an indefinite statute of limitations for an audit, but can also result in other penalties.

    Be Sure You Made No Mistakes

    The easiest way to make sure you don’t make tax mistakes that could result in penalties or audits is to work with an accountant to prepare your return. Whether you are an individual or a business, you could benefit from professional tax preparation services. You don’t want to be subject to and IRS audit forever!


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