The IRS Audit Blog

Posts Tagged ‘limitation’

Question: Is there a certain amount of time the IRS has to review past tax returns?

I don’t mean an audit really, but if a 1099 is forgotten on a tax return, is there a statue of limitations or anything for the IRS to do anything about that?
I am not sure what kind of 1099 it is but its for a DJ job my husband did in 2006 and it amounts to about $6000 dollars.

Answer: Usually they are on a 3 year cycle. After 3 years you are usually safe. Technically, they can check 7 years back. If they find evidence of fraud, the limit is extended .

UPDATE: Sen Dodd Faces Tough Choices To Pass Financial Overhaul

(Adds details and comments on consumer financial protection agency.)

mission life intro

Question: I just received a letter stating that I was recenlty audited in Maryland for the 2005 tax year. ?

The letter states that I owe 250 bucks because they say that I did not include an addition modification on my state taxes though I had a tuition deduction on my fed. taxes. In MD, it seems that people are taxed on fed. tuition deductions. In other words, the fed gives and the state takes it right away. My questions are: Is there a statute of limitations in MD? What is the statute of limitations on Tax Audits in Maryland? How far back can they go back to audit me?

Thanks

Answer: The typical SOL is 3 years from the filing deadline for the return. Assuming that to be the case, MD would have until April 15, 2009 to assess any additional tax. They got it in just under the wire.

When State SOLs differ from Federal they’re typically longer, not shorter. CA used to be at least 4 years and I believe that it still is.

The Pepsi Bottling Group Reports Fourth Quarter and Full-Year 2009 Results

SOMERS, N.Y.—-The Pepsi Bottling Group, Inc. today reported its financial results for the fourth quarter and full-year 2009. For the full year, PBG reported net income of $612 million, or diluted earnings per share of $2.77.

Statute of Limitations

After taxes: Save or shred it?

Taxpayers who labored to meet the April 15 deadline face an even more daunting endeavor: figuring out which documents to save and which can be assigned to the shredder.

IRS Tax Debt Relief | Offer in Compromise

Question: Has anyone recieved a refund after an amended return? How long did it take?

We got audited by the IRS for a tax return from 2005 and it was determined that we were due an additional refund. We just signed the papers on the amended return yesterday.

When i looked at the IRS website it said it may take up to 2 months to process! Plus you cannot check amended returns via the “wheres my refund” hotline or link.

So if anyone went through this, how long did it take before you receieved the refund? Thanks!

Answer: Amended returns have to be processed manually which slows them down significantly.

I helped a relative file an amended return last year and it took about 7 weeks. However, it was submitted in November when the tax office was not busy processing all of the normal tax returns.

If you submit it during the busy season, it may take longer. But think of it this way, you haven’t had that money for over a year, what’s a few more weeks?

How nice for an audit to turn out in your favor!! You don’t hear of that happening very often!

MicroPact Significantly Expands Federal Profile

MicroPact, the leading innovator in a new generation of data tracking software, announced today that it ended 2009 serving nine of the 10 largest federal agencies, including the Department of Defense , with an enterprise implementation of a MicroPact product.

Geithner: Once the IRS audit showed failure to pay taxes, why didnt Geithner correct 2001 and 2002 failure?

Rule changes impact private company income tax reporting

It’s time for private companies to be aware of FIN 48. The accounting rule requiring more stringent and detailed disclosures for income taxes originally came out in 2006. However, due to a public outroar, it was postponed for private company reporting until now.