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:
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

Charlie Rangel: GOP Believes 'Slavery Isn't Over'

Thursday, 30 Oct 2014 23:09 PM

Rep. Charlie Rangel on Thursday likened Republicans to Confederates from the Civil War era, charging that they "believe  . . .

New York Archdiocese to Reorganize, Merge Parishes

Thursday, 30 Oct 2014 22:51 PM

The Roman Catholic Archdiocese of New York will merge more than 50 parishes because of lower attendance and rising expen . . .

Michelle Bachmann: World Sees US Has No Plan to Fight Terrorism

Thursday, 30 Oct 2014 21:56 PM

The world has no confidence in U.S. leadership because they don't know what our plans to fight terrorism are, Rep. Miche . . .

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