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01-18-2016, 06:42 AM #1
IRS Has 6 Years to Audit - Up from 3
Thanks to some changes by Congress, the IRS now has 6 years to audit you if you understate your income by 25% or more. This is up from 3 years.
Examples of understating income include not just omitting side hustle income. They also include overstating cost basis on asset sales.
Also, after an assessment is made, the IRS has 10 years to collect. And they can garnish wages and file leans.
Add to that a nearly unlimited audit life f you forget to file certain forms. And small employers should know that the IRS can go back 30 years to audit payroll taxes.
So better to be safe than sorry. And better not to try to cheat the tax man.
01-18-2016, 07:44 AM #2
What happens if you make an innocent mistake?
01-20-2016, 07:14 AM #3
The taxman always wins.
Tina - if you make even an innocent mistake, you will owe the taxes and interest. But the IRS will set you up with a payment plan.
01-23-2016, 09:59 AM #4
You can't avoid death or taxes.