How Long the IRS Has to Audit You, by Situation
Your audit window depends on what’s on your return and whether you filed one. The IRS lists these limits on its page about the time it can assess tax. To “assess” tax means the IRS officially records an amount you owe.
| Your situation | Time the IRS has to assess tax |
|---|---|
| You filed a return | 3 years |
| You left out more than 25% of your gross income | 6 years |
| You left out more than $5,000 of income from specified foreign financial assets | 6 years |
| You filed a fraudulent return | No limit |
| You didn’t file a return | No limit |
Specified foreign financial assets are foreign accounts and investments covered by the reporting rules in the IRS summary of FATCA reporting.
What “Statute of Limitations” Means
The time limits in the table are called the statute of limitations. A statute of limitations is a legal deadline. For audits, it’s the window the IRS has to review your return and assess more tax.
What “Gross Income” Means
Gross income is all the income you receive before any deductions, such as wages or freelance pay. The 6-year rule applies when the income you left off your return is more than a quarter of your gross income.
Why Filing Early Doesn’t Start the Clock Sooner
The IRS treats returns filed before the due date as filed on the due date. So if you file weeks early, your 3-year window still starts on the due date.
Which Tax Years the IRS Usually Audits
In practice, the IRS focuses on recent returns. According to the IRS audits page, it generally includes returns filed within the last 3 years. If it finds a substantial error, it may add more years, but it usually doesn’t go back more than 6.
The IRS notifies you of an audit by mail. You might also get a CP2000 notice, which is separate from an audit. It flags a mismatch between your return and income reported by employers, banks or others, and it proposes changes to your return.
When the IRS Asks You to Extend the Deadline
If your audit window is closing, the IRS may ask you to sign an agreement that gives it more time. This agreement is usually Form 872, explained in IRS Publication 1035. You can negotiate the proposed extension or refuse to sign it.
How Long the IRS Has to Collect Tax
Once the IRS assesses tax, a separate clock starts. The IRS generally has 10 years from the date your tax was assessed to collect it.
How Long to Keep Your Tax Records
Because audit windows vary, so does the time you should hold on to your records. The IRS guidance on how long to keep records follows the same limits.
| Your situation | Keep records for |
|---|---|
| You filed a return | 3 years |
| You left out more than 25% of your gross income | 6 years |
| You claimed a loss from worthless securities or a bad debt deduction | 7 years |
| You didn’t file a return or filed a fraudulent one | Indefinitely |
