Tags: When Does the IRS Audit Back 6 Years

When Does the IRS Get to Audit Back 6 Years?

Friday, 02 Sep 2011 06:13 PM

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.



© 2015 Newsmax. All rights reserved.

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:
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
Top Stories
You May Also Like

Rap Mogul Suge Knight Investigated in Deadly Hit-and-Run

Friday, 30 Jan 2015 06:41 AM

Death Row Records founder Marion Suge Knight turned himself into authorities early Friday after his attorney said the  . . .

'Ebola Czar' Ron Klain Will Leave Job Feb. 15

Thursday, 29 Jan 2015 22:32 PM

The Obama administration's "Ebola czar" will leave his post on Feb. 15, although he said there is still work to do at er . . .

Texas Executes Killer Who Claimed Mental Impairment

Thursday, 29 Jan 2015 21:41 PM

The state of Texas on Thursday executed a convicted rapist-killer whose lawyers argued was severely mentally impaired, h . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

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