Can the IRS hound you forever on past taxes?

I have found over the years in my practice that many clients are unaware of the auditing and collection statutes that govern taxation in this county. Let's review a few of the statutes that the IRS must abide by in the collection of past due taxes as well as for the purposes of auditing and assessing additional taxes.1. Statute of Limitations for purposes of additional assessment or refund: In general, the IRS and a taxpayer have 3 years from the due date of the return, including extensions, to change a previously filed return. However, if the returns were not timely filed then there is an additional 2 years from the date the return was processed. There are instances where both the IRS and the taxpayer can consent to extend the statute, this is usually done during an audit when the statute is about to expire. There are pros and cons for doing this. As far as collections are concerned: the IRS generally only has 10 years to collect on unpaid taxes before the statute of collection expires. However, there are always exceptions to this especially in the event of fraud or criminal activity.

For more detailed info and other statute information. IRS Revenue Manual Excerpt

Love and Associates, Inc is a tax resolution, tax preparation and tax planning company located in San Diego, CA with clients all over the world. They offer support for small to medium size businesses as well as solutions for those with tax problems and tax burdens.