How soon or long after filing tax returns does the IRS take to contact you for an audit?

Question

I've never itemized before but had numerous medical bills last year. Now I'm nervous that the deductions will send up a red flag.

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ifcgurl68
S How soon or long after filing tax returns does the IRS take to contact you for an audit?
I've never itemized before but had numerous medical bills last year. Now I'm nervous that the deductions will send up a red flag and I can't find all of my receipts. What happens if you don't have all your documentation? Do you go to jail or just pay them back?

Answer 1

They are allowed up to three years, but typically it would be less than that, but would likely be at least one year and two wouldn't be unusual.

If you have documentation for your itemized deductions, and they're all legitimate, then being audited might be a pain but won't end up costing you anything other than your time. Many audits turn out with no finding of additional taxes - in fact, sometimes you even end up with some additional money back!

Answer 2

Also keep in mind that the number of years used as the statute of limitations start counting from the day you file your return. So for any tax year that you never filed a return, the statute of limitations will never run out and the IRS can come after you for it at any time.

Answer 3

Unless they have probable cause to suspect fraud, the IRS has 3 years to audit a return and assess any additional tax. As long as the deductions were legitimate and you have proof, don't sweat it! If they ask, just mail off copies of the proof and you'll be all set.

If any of your receipts are missing, contact the providers now and ask for copies of the bills and payment records. Store them in a safe place and don't sweat it.

Answer 4

The IRS can take up to three years after the due date of the return to select you for an audit. If you've completed your taxes honestly, an audit should not concern you, other than the time it takes to drag your receipts down to the local IRS office suite for review and coffee.

Answer 5

Answers 2 and 3 are correct. The 3 year limit starts on the date the return was originally due, or the date actually filed, whichever is latter. For your 2006 return, they deadline would be April 17 2010. If you filed late, May 5th for example, the deadline would be May 5th 2010.

Answer 6

I think it's 7 years. If they don't contact you this year they might notice the deductions next year or in 2009. Keep your records for 7 years then you can breathe a sigh of relief.

Also, they can contact you any time of year, there is no specific time