Can you get tax audit after receiving your tax refund?

Question

Is there a time when you known you're safe from audit?

Answer 1

You can be audited at any time for any reason the IRS Commissioner sees fit....

...up to 3 years.

After that, yer dun. Shred those receipts.

Now if you were to ever come under investigation for fraud, the IRS is allowed to go back 10 years.

(It's actually a good idea that you keep your original 1040 forms and one copy of all your W-2 forms for your entire life. The Social Security Administration will base your retirement benefits on your lifetime contributions, and they make numerous mistakes, mostly omissions. My report from them is missing 2 full years of income, and I don't have the records to correct them. As a result, my payments could be reduced slightly.)

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Edit:

As usual, when answers differ, I have to look up my own sources to make sure I'm not leading you down the garden path.

According to the US Supreme Court:

"Congress has regarded it as ill advised to have an income tax system under which there would never come a day of final settlement and which required both a taxpayer and the Government to stand ready forever and a day to produce vouchers, prove events, and recall details of all that goes into an income tax contest."

There is therefore a statute of limitations based on "Rothensies vs. Electric Storage Battery", US Tax Court case #9106 (US Supreme Court case 1946).

For the IRS, the statute of limitations for an ordinary audit is 3 years from the date the return is filed (or April 15, whichever is later).

Exceptions:

If the IRS can prove INTENT to file a fraudulent return to EVADE paying taxes, further penalties may be imposed at any time (no statute of limitations).

If you fail to file a return, the statute of limitations "clock" never begins until you finally file, regardless of the reason.

For "substantial omission of income", the statute is extended to 6 years (anything in excess of 25% of what you reported).

So I was wrong about the 10-year thing. (I wonder where I got that from?)

Thanks to those below who schooled me on the 10-year thing.

Answer 2

You can be audited for three years after April 15th if you file on time, or 3 years after you file if filed late.

For example, you filed your 2006 tax return on 2/20/07 - you can be audited until April 15, 2010. If you filed it on 6/5/07, then you can be audited until 6/5/10.

If you understate 25% of your income, the limit is raised to 6 years.

If your tax return is fraudulent, then there's no time limit. [How do they know your tax return is fraud before an audit? I don't know - and don't care either.]

It never makes a difference whether or not you are getting a refund.

Answer 3

In most cases, audits are performed 1 - 2 years after the tax return is filed, long after any refund has been received. Currently the IRS is focusing their effors on fraudulent EITC claims. Most of those cases will be sorted out before a refund check is cut but most other cases will not be looked at until later this year at the earliest.

Unless there is evidence of fraud, the IRS has 3 years from the filing deadline or 3 years from the date the return was filed, whichever is later, to audit a return and assess any additional tax. If there is evidence of tax fraud, there is no statute of limitations and the IRS can go back as far as they want.

Answer 4

Oh Hell yes you can be audited after the refund!! That's when audits come, not between the time you file your return and the time you get your refund.

When are you safe from audit? After 7 years.

But if you have filed your returns as required, and if you've been honest and paid the taxes you owed, you have absolutely nothing to fear. I had a random audit (as opposed to an audit based on a questionable return) a few years ago. It went just fine.

Don't lie, cheat, or steal, and you'll have no problem whatsoever. But be able to document any deductions you claim.

Answer 5

shibboleth: the 10 year limit is the limit for the IRS to collect from a taxpayer after they have issued an assessment. So for a non-filed return the limit is forever + 10 years! :-)

Answer 6

yes you can be audited, a tax return is throughly reviewed and all income is check with W2/1099 information that employers file with the IRS if one doesn't report all income then you will get a notice of underreported income.

Answer 7

Shibbole the ten years is the statue of limitation for the IRS to collect on Assessed taxes.

Answer 8

As long as you reported all of your income and there is no fraud committed, 3 years from the filing deadline or the date you filed, whichever is later.

If you didn't file or fraud is involved, there is no deadline.

Answer 9

Yes you can !!! Just got my notice last Friday....Ouch!!!
Usually 7 years after return is filed, they can't audit you...

Answer 10

they can audit you up to 10 yrs. later. It happened to me. Keep all of your records and receipts for 10 yrs.