When Does the IRS Get to Audit Back 6 Years?

Friday, 02 Sep 2011 06:13 PM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
According to IRS regulations, the Service wants to audit your taxes for six years -- if you fail to disclose 25% or more of your gross income. But what exactly triggers the dragonian result is the subject of bitter litigation, which may end at the doorstep of the U.S. Supreme Court, according to a Forbes report .

In an example put forward by Forbes: You sell a piece of property for $3 million, claiming that your basis (what you have invested in the property) was $1.5 million. In fact, your basis was only $500,000. The effect of your basis overstatement was that you paid tax on $1.5 million of gain when you should have paid tax on $2.5 million. Your basis over-statement may trigger a six-year statutory audit.



© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Sarah Palin: Tina Fey Owes Me Big for Career Success

Wednesday, 20 Aug 2014 17:19 PM

Sarah Palin says former Saturday Night Live cast member Tina Fey owes her big – for helping to catapult the actress' car . . .

Supreme Court Halts Gay Marriage in Virginia

Wednesday, 20 Aug 2014 16:13 PM

The U.S. Supreme Court blocked the start of same-sex marriage in Virginia, putting a lower court ruling on hold while th . . .

'House of Cards' Actress to Star in Burnett's CBS Mini 'Dovekeepers'

Wednesday, 20 Aug 2014 15:48 PM

House of Cards and Manhattan alum Rachel Brosnahan is set to take flight as the star of The Dovekeepers, the four-h . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved