subject: IRS Audits – The Five Year Rule [print this page] The legend of the brutal IRS audit, we have heard so much. Someone will be a through, in which the friend of a friend who checked two years in a row! Thus, there is no truth to this? How often can the IRS audit you?
The IRS uses tax audits for a number of reasons. The first is quite simple. The IRS estimates there is a $ 345 billion U.S. dollars tax gap every year. This means that we, the taxpayers, the agency short sales are on that amount. The tax audit is designed to try toto fill this gap. This is done by individuals and companies to prove their deductions and so done.- Tax Help
The second purpose of the tax audit motivate "taxpayers who comply with the tax rules. Frankly, the IRS is happy, you and I are the prospects of a fear that audited. Why? Because we are much more likely to pay every penny we owe each year. In other words, corresponding revenue afraid! - Tax Help
Regardless of the purpose, it is true that the IRS can audit you two years in aROW? Unfortunately, the answer is yes. In fact, the agency can do it three, four and five years in a row. At this point, the IRS called mercy rule. It has announced that it will not audit a taxpayer on the same subject for five years in a row. Of course, one could look at something else!
Is not that good news? Well, not really. Can you imagine examined five years in a row. It's hard to imagine things are becoming worse than that. While the IRS may let go after five years, itis difficult, a scenario in which you would imagine are in good shape. Even if you owe nothing in the end, you would have the nerve to be incredibly worn out!
