How far back can the Los Angeles tax assessor go back when they have made a mistake in the amount of your tax.

Question

seems I have been underpaying for quite a while!
I was told they can go back 3 years.
HELP!!! I am very worried.
I am current on what they originally said I owed every year.

If it is 3 years I will gladly take it!!
It looks as if I have been under-assessed for 18 years....

Answer 1

Well, In Australia (and you have posted this question in the Australian tax section), if the mistake is the fault of the tax office then they don't slug you with penalties and accrued interest charges in addition to paying the underpaid tax.

However, they may not be so lenient if it can be shown that you were aware of the mistake for some time and neglected to inform them of it so it's best to 'fess up as soon as the mistake comes to your attention so you can keep blame pinned on them.

Perhaps this reasonable common sense system is one that your tax assessors follow. I hope my info helps you should you ever emigrate to Australia anyhow :)

Answer 2

The Statue of Limitations on property taxes is usually 3 or 4 years depending on the location

So, yes, they can go back three years and reassess you.

Santa Clara County went back three years and reassessed the company I used to work for on some equipment that we had there. Our taxes would have gone up over $100,000. We got a lawyer to fight it and won!! It cost us about $15,000 in legal fees though.....