Saturday, December 29, 2007
How far back does the IRS check?
The IRS currently has a policy that states that you must file at least the past 6 years in order to be in compliance. This doesn't always mean that you only want to go back and file your past 6 years. When seeking professional help ask for them to search for any SFR's which would be able to lower your liability if filed properly. This doesn't mean that you are able to receive a refund if its that far back though. The IRS will only allow you to collect a refund if the returns are filed within the past 3 years. The main downfall to this for us, the filers, is that the IRS's statute of limitations goes back 10 years. So it is possible for you to owe for the past 3 but could have collected a refund for the prior 4. This is why it is so important to file on time and every year. I personally use a professional to file my taxes but I will inform you on how you are able to file your own in future blogs...
Here are a few extra websites to check out for further information.
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
Tax Consultant 4 You
Strange Land