if a person cheated in 2005 will they go after him right away or wait and let interest pile up or even worse let themcheat again?
2007-01-22 05:53:11 · 6 answers · asked by NONAME 1 in Business & Finance ➔ Taxes ➔ United States
Unless it's something really obvious, it's not unusual for it to be a couple years before they get around to it. Letters regarding unclaimed income on returns for 2004 just went out in mid 2006.
2007-01-22 06:14:17 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
There's no way to predict it. I've seen people get audited within the same tax year that they filed their taxes in, and others went for 2-3 years before the red flag went up. I don't believe that the IRS knows you're cheating and waits for you to cheat on your returns for a few more years just so they can get more interest from you - I think it's more like a flag goes up one year, and then they look back through a few more years to see if you were doing it all along.
2007-01-23 18:28:09 · answer #2 · answered by Melissa O 1 · 0⤊ 0⤋
The IRS computer tapes do not start matching and looking for unreported income for 2005 until some time in 2007.
2007-01-22 14:01:46 · answer #3 · answered by spicertax 5 · 0⤊ 0⤋
It depends on what they suspect and how much money is at stake. On the average, the IRS lets the statute of limitations almost expire, then sends you a nice little letter. Your friend can breathe easier after 2008, unless there is fraud involved.
2007-01-22 13:59:24 · answer #4 · answered by Scott K 7 · 0⤊ 0⤋
We can only expect the government to become more and more authoritarian as time goes on. In 20 years you won't be able to buy a loaf of bread without presenting your identification papers for verification.
2007-01-22 14:02:36 · answer #5 · answered by Jabberwock 5 · 0⤊ 0⤋
Its in the works as we speak!
2007-01-22 14:01:32 · answer #6 · answered by Wounded duckmate 6 · 0⤊ 0⤋