i am being audited by irs for 2002 this is after they tell me they cant pay me .?

Question

they say they cant pay me because its been more than 3 years .can thay do this it does not sound fair

Answer 1

Yes they can still audit you, and if YOU owe THEM money, they can still collect it.

Answer 2

The law is you have three years from the due date of a return or the last date of any payments made for that year(whichever is later) to get any refund, but the IRS has three years after you FILE the return to audit you. The only exception would be if they had reason to suspect fraud in which case they can go back 6 years. So, your 2002 return was DUE on 4/15/2003. If you filed after 4/15/2006, you cannot get any refund. SO let's say you filed on 8/15/2006 - you get no refund but IRS has until 8/15/2009 to audit you and collect additional tax. So it's not FAIR, but it is THE LAW...

Answer 3

Sounds legal to me. And fair too.

You never filed for 2002. Now you did. The statute for IRS audits is three years from when you filed. The clock didn't start until you turned in the return.

When filed your return you attested that everything on the return was true and correct. Even though you were denied refund, you also claimed that with withholding taken into account you didn't owe anything.

If you earned income on a W-2, then they are questioning your filing status, exemptions claimed, credits claimed and/or itemized deductions. If any of these are denied, your income goes up, your tax bill goes up and if not enough money was withheld, you could end up owing money.

If you earned income was from self-employment, the IRS can also question your receipts.

Answer 4

Your question does not make any sense. If an old year return that was filed is being audited, IRS would request you sign a waiver which would keep the statute of limitations open for assessing additional tax or getting a refund. If you have not filed and IRS is doing an audit using its Substitute for Return Process (short version--IRS files a return for you showing zero income then audits it) then they can assess tax at any time but without a waiver and give you credit for any withheld tax but can not issue a refund for an overpayment because you sat on your hands so long that the statute of limitations for filing a refund claim has expired. Fair or not fair, it is your fault.

Answer 5

Payment statute of limitations is 3 years.

As far as them nailing you.
They have 3 years from the date of your filing the return; or
6 years if you commit fraud to the extent that income is underreported by more than 25%; or
indefinately if you fail to file a return (as the SOL does not start to run until you file a return.)