The Standard IRS Audit Period: Three Years
For most taxpayers, the IRS has three years from the date of filing to audit a return. This is known as the statute of limitations on tax audits.
Here’s how it works:
Example: If you filed your 2023 tax return on April 15, 2024, the IRS generally has until April 15, 2027, to audit that return.
For many taxpayers, this three-year statute means older returns eventually “expire” from audit risk.
The Six-Year Rule for Substantial Underreporting
The IRS can extend the audit window to six years if you understate your income by more than 25%.
This is often misunderstood, so here’s what counts:
Example: If you earned $200,000 but forgot to report a $60,000 contractor payment, that’s a 30% underreporting. The IRS could audit that year for up to six years.
This extended period reflects the IRS’s position that a significant omission raises a higher risk of tax underpayment.
The Unlimited Audit Window for Fraud or Non-Filing
Some tax situations have no statute of limitations, meaning the IRS can audit at any time—even decades later.
This happens in three major cases:
1. Civil or Criminal Tax Fraud: If the IRS suspects fraud—such as intentionally hiding income, falsifying deductions, or manipulating records—the audit period becomes unlimited. Fraud cases may also lead to severe penalties and even criminal charges.
2. Filing a False or Fraudulent Return: If a return is deemed false, incomplete, or intentionally misleading, the IRS may review it at any point in the future.
3. Failure to File a Tax Return: If you never file a return, the IRS can:
The statute of limitations does not begin unless a valid return is filed.
This is why the IRS still audits cases from the 1990s and early 2000s for people who never filed.
IRS Audits for Foreign Income Can Extend Further
The IRS takes foreign asset reporting seriously, and several international compliance forms come with longer audit windows.
This means the IRS can audit indefinitely.
Because foreign reporting penalties can be extremely high, it’s critical to file these forms when required.
What Triggers an IRS Audit?
Even if a tax year is still open, the IRS typically audits only a small percentage of taxpayers. However, certain red flags can increase your chances:
The IRS uses automated systems to flag inconsistencies, and certain industries (cash-heavy businesses, real estate, crypto, influencers) receive more scrutiny.
How Far Back Does the IRS Actually Go in Practice?
Although the IRS can audit up to three, six, or unlimited years depending on the situation, most audits focus on the last two years.
However:
How to Protect Yourself From IRS Audits
Even if the IRS is legally allowed to audit past years, you can protect yourself with proper preparation.
Keep Your Records for at Least Three to Seven Years
Most accountants recommend keeping tax-related records for seven years, including:
Seven years ensures you’re covered in both the three-year and six-year audit windows.
File Even If You Can’t Pay
Filing prevents the IRS from applying the unlimited statute of limitations.
You can always request:
Not filing is far riskier than filing with a balance due.
Correct Past Returns if Needed
If you discover errors, amending returns can:
Tax professionals can help ensure your amendments are accurate.
Work With a Tax Professional
If you have complex income (business, rental, foreign, crypto, influencer/creator income, stock compensation), a CPA can help you avoid audit triggers and maintain proper documentation.
Final Thoughts
For most taxpayers, the answer is three years. But if income is significantly underreported, the lookback period extends to six years. In cases of fraud, non-filing, or missing foreign reporting forms, the IRS can audit returns at any time—with no limitation.
Understanding these timelines empowers you to stay compliant, organize your records properly, and reduce audit stress. Filing accurate, timely returns is the best way to protect yourself and keep old tax years behind you for good.
If you’re concerned about how far back the IRS might audit you — or already facing an examination — Dimov Audit can review your prior-year returns, quantify your risk and represent you confidently before the IRS. Contact us today for expert aid.
FAQs
Can the IRS collect after 10 years?
Generally no—once 10 years have passed from the date your tax was assessed, the IRS’s time to collect usually expires, unless the period was extended or paused (for example, by bankruptcy or an installment agreement).
Can the IRS audit me after 7 years?
In most cases no, but the IRS can audit up to 6 years for large underreporting and indefinitely for fraud, unfiled returns, or certain unfiled foreign information forms, so some older years can still be opened.
What income level triggers an audit?
There’s no fixed dollar amount, but audit rates rise with higher income, especially for complex returns with large deductions, self-employment, foreign income, or crypto activity.
Will amending a tax return trigger an audit?
Not automatically—however, an amended return can draw extra scrutiny if it significantly changes your income, deductions, or credits, so it’s wise to file with solid documentation.
