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One good tax thing about today
Old 04-15-2010, 03:13 PM   #1
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One good tax thing about today

Its hard to find something positive to say about taxes and 4/15 so I thought Id remind everyone that if you filed by the due date, today is the last day the IRS can challenge your 2006 tax return at least for most reasons which affect this group.
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Old 04-15-2010, 04:33 PM   #2
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Thanks I'm still exchanging mail with the IRS about my 2007, so I guess 2006 is safe.
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Old 04-15-2010, 10:11 PM   #3
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to recall an old episode of M*A*S*H*, tax time really is about getting your story straight
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Old 04-15-2010, 10:15 PM   #4
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Quote:
Originally Posted by MichaelB View Post
It’s hard to find something positive to say about taxes and 4/15 so I thought I’d remind everyone that if you filed by the due date, today is the last day the IRS can challenge your 2006 tax return – at least for most reasons which affect this group.
Really? I didn't know that! I thought they could challenge them forever.

I guess I can stop fretting about the fact that my ex took all my/our tax records with him when we divorced in 1998...

Actually the one I am most concerned about (because of its complexity, not because of any intentional wrongdoing) is my 2008 tax return. But it sounds like I only have two more years to worry about that one. I like that!
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Old 04-16-2010, 12:21 AM   #5
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I just threw away some check stubs for work I did as an independent contractor. In 1993. Most of them for $50. Now I won't worry about being audited.
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Old 04-16-2010, 06:57 AM   #6
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I think it was the last day you could file an amended return for 2006 but the IRS can go back to the day you earned your first nickel if they wanted to.
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Old 04-16-2010, 07:04 AM   #7
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I always thought the IRS could go back 7 years. I just did a quick look and saw that it is normally 3 years, but 6 if they have reason to believe you under-reported by 25% or more.
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Old 04-16-2010, 07:37 AM   #8
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I think it was the last day you could file an amended return for 2006 but the IRS can go back to the day you earned your first nickel if they wanted to.
Three years for most claims, six years if income underreported by more than 25%, no limit only when accused of fraud.
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Old 04-16-2010, 09:39 AM   #9
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Asked my CPA the same question (I want to pitch "old" tax files). He said the IRS is 3 years behind with audits. So an audit won't be initiated on returns more than 3 years old.

BUT if a pattern of fraud is detected in a audit, they can go back as far as they want. So you need to keep the files to defend yourself - forever.
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Old 04-16-2010, 09:44 AM   #10
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BUT if a pattern of fraud is detected in a audit, they can go back as far as they want. So you need to keep the files to defend yourself - forever.
But think about this: what you're really saying is that they can go back as far as they want if they THINK they detect fraud. So, even if there's no fraud, they could still suspect it, in which case you need to keep all your records so that you can defend yourself. Right?
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Old 04-16-2010, 10:48 AM   #11
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But think about this: what you're really saying is that they can go back as far as they want if they THINK they detect fraud. So, even if there's no fraud, they could still suspect it, in which case you need to keep all your records so that you can defend yourself. Right?
Perhaps so, but as I understand it, in order to enforce it the IRS would have to prove there was fraud -- and that's a criminal offense so they would need to prove criminal intent beyond a reasonable doubt.

It wouldn't be like coming after you for a 2-year-old mistake on a return where they say "you owe it because we said so." They have to have a lot more proof if they allege fraud. The IRS is very powerful, but even they have to prove *criminal* allegations beyond a reasonable doubt.
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Old 04-16-2010, 11:20 AM   #12
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But think about this: what you're really saying is that they can go back as far as they want if they THINK they detect fraud. So, even if there's no fraud, they could still suspect it, in which case you need to keep all your records so that you can defend yourself. Right?
Criminal tax fraud is the intent to deceive. It's not evasion. If you can reasonably say "oops, I forgot" or "it's a math error" then it's not fraud and they can't audit you for that after 3 years unless the amount in question exceeds 25% of your income. Now, if you take unreported income, buy diamonds, smuggle them to Switzerland in a false toothpaste tube, then open an account and deposit - well, that's evidence of intent.
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Old 04-16-2010, 12:04 PM   #13
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My understanding - when we discussed it - was that the IRS investigation (looking back more than 3 years) was limited to fraud previously detected (no full blown audits to detect new problems).
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Old 04-17-2010, 11:50 AM   #14
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I saw on another forum that April 15th is also the day the Titanic sunk. Coincidence??--I don't think so....
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