QUESTION DETAIL
Related User
Votes
How long should I save the tax returns?
ANSWER
Expert Michael Lim's Answer:
The general rule is that you should keep copies for at least 5-7 years.
The IRS has a general statute of limitations for audits in that they have 3 years to assess taxes (3 years after the tax return was filed with the IRS).
However, if the IRS finds that you have omitted greater than 25% of your income for any time period, they have up to 6 years to audit you.
Reference:
Under section 6501(a) of the Internal Revenue Code (Tax Code) and section 301.6501(a)-1(a) of the Income Tax Regulations (Tax Regulations), the IRS is required to assess tax within 3 years after the tax return was filed with the IRS. Similarly, under 301.6501(a)-1(b) of the Tax Regulations no proceeding in court by the IRS without assessment for the collection of any tax can begin after the expiration of 3 years.
Under section 6501(e) of the Tax Code and section 301.6501(e)-1 of the Tax Regulations the statute of limitations is 6 years if the taxpayer omits additional gross income in excess of 25% of the amount of gross income stated in the tax return filed with the IRS.
