Skip to Content

April 21, 2015


Time Limits On Tax Audits, Part 2: Responding to a Records Request

In the first part of this post, we posed the question of how far the IRS can go back into your past when conducting tax audits.

As we noted, the IRS by no means has a blank check to do this. Generally the limitation is three years, or up to six if the IRS identifies a substantial error.

But what if the IRS asks you to voluntarily waive the limitations period because it supposedly needs more information to fully review your returns? In this part of the post, we will discuss how a tax attorney can help resolve situations such as this.

First of all, let’s start with the reams of documents that you may need to round up to respond to the IRS. Because of our firm’s experience in so many complex tax audits over the years, we can help you get a handle on the records you will need to support your position.

From bank statements to balance sheets, we can show you ways to keep your cache of documents from cascading out of control.

We will also help you put the current challenges in context. Let’s say the IRS audits your individual income taxes and makes a finding against you that will increase your tax liability. The fact that the IRS made such a finding does not mean that the IRS has won and you have lost for good. You still have the opportunity to make an internal appeal within the IRS.

This appeal goes to the IRS Office of Appeals, which is located in a separate part of the IRS from the revenue agent who conducted your audit. Our firm has a solid record of success in appeals at this level.

These are only a couple of examples of how having an experienced tax lawyer in your corner can enable you to deal with the IRS with confidence — even if the IRS seeks to look into your back taxes.