How Long Does the IRS Have to Audit Your Florida Tax Return?

Most Florida residents file their federal tax return each year and promptly move on, assuming the Internal Revenue Service (IRS) has a short window to come back with questions. While that may be true in most cases, that window can stretch much longer, depending on your particular situation.

Knowing how the audit timeline works can help you make smarter decisions about recordkeeping, amended returns, and how to respond if the IRS does come calling. Our experienced Florida tax and IRS attorney explains the rules and when the clock can work against you.

The Standard Audit Window for Florida Taxpayers

The IRS generally has three years from the date you file your federal tax return (or the due date, whichever is later) to conduct an audit and assess additional tax. If you file on time, the clock starts April 15. If you file late, it starts on the date the return actually arrives.

Most Florida taxpayers who file complete, accurate returns have little to worry about once the three years pass. However, red flags that could create issues during that time include:

• Income or deductions that appear inconsistent with your occupation or lifestyle.
• Large charitable contributions relative to your reported income.
• Unusually high business expenses claimed on Schedule C.
• Missing forms or incomplete information on your return.
• Significant changes in income from one year to the next without explanation.

Filing an amended return resets the clock on the amended portion of the return, so timing matters if you are considering making corrections after the fact.

When the IRS Gets More Time to Audit Your Florida Tax Return

If you file a Florida federal tax return and the IRS determines you omitted more than 25 percent of your income, they have six years to conduct an audit under Internal Revenue Code Section 6501. Beyond the six-year rule, situations that can give the IRS more time include:

• Failing to file a return at all, which means the clock never starts.
• Filing a fraudulent return, which removes any time limit.
• Omitting more than $5,000 in foreign financial asset income.
• Failing to file certain international forms, such as Form 5471 for foreign corporations.
• Situations involving civil or criminal tax fraud, where the IRS can look back as far as it needs to.

Wondering how exposed you might be to an IRS audit is stressful, but you don’t have to figure it out alone. To determine where you stand and protect yourself going forward, get professional legal help today.

Contact Our Experienced Florida Tax and IRS Attorney Today

If you have concerns about an IRS audit or other tax issues, contact Florida tax and IRS attorney Ronald Cutler right away. A Certified Public Accountant and former FBI Special Agent, Mr. Cutler has more than 50 years of experience navigating complex tax matters for Florida taxpayers.

Don’t face the IRS alone. To get the trusted, knowledgeable legal guidance you need to protect yourself, request a consultation today.

Sources:

irs.gov/businesses/small-businesses-self-employed/irs-audits

uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title26-section6501&num=0&edition=prelim