how long may the irs keep a tax investigation open?

Question

the irs claimed my uncle's estate planner broke rules/tax law many years ago. he hired a lawyer over ten years ago to deal with irs. my uncle died. my aunt wants to know if and when they will leave her alone so that she can move oversees money back into the states and so that she can buy a house without fear of the irs taking it away. she hasn't heard from irs in many years

Answer 1

The IRS can continue to investigate as long as the "statute of limitations" is open. The statute of limitations is generally three years after a tax return is filed UNLESS the taxpayer agrees to extend it. In the case of a 25% or more understatement of tax, the statute of limitations is 6 years. In the case of fraud, false returns or non-filers, there is no statute of limitations.

If the taxpayer refuses to extend the statute of limitations the IRS generally assesses the tax, in which case you must appeal to the IRS within a certain number of days. If the IRS denied the appeal then you must sue the IRS in tax court. It sounds as if this has been going on for some time, so you might already be in tax court, or 6-year statute has not expired or there is no statute of limitations.

You should discuss the status of the case with your aunt's attorney. Your aunt might be able to assert innocent-spouse relief (see the links below).

Answer 2

They can and will Investigate for as long as they wish until they get what they want/need or until they find out all there is to find out this is the government and that is that. So sorry about your uncle and I hope all turns out good on your aunts behalf. Take Care

Answer 3

Way long....don't let guard down.