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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (248626)	5/3/2008 12:56:07 PM
From: Alan Smithee	Read Replies (1) \| Respond to of 793926

Thanks all for that feed back. Can we say that routine audits are only done in the prior tax year and audits of returns from farther back only happens if the IRS has evidence of fraud? Not really. The IRS, as with many things governmental, is always running late. Typically, right now, they'd be looking at returns filed for the 2005 tax year (filed in 2006, thus with about a year left on the statute for assessment). If they're already looking at 2005, they'll look at 2006 and 2007 also. If they run into a time deadline and the 2005 audit is not done, they'll ask the taxpayer to extend the statute another year. If taxpayer refuses, they'll run with what they have and issue a deficiency letter and let the Tax Court sort it out. If, during an audit (examination in IRS parlance) they find indicia of fraud, they, a can of worms is opened up. Other years are fair game and will be looked at. Also, if indicia of fraud are found, CID (Criminal Investigation Division) gets involved to determine whether a criminal prosecution is warranted. If so, CID takes over and chews on the taxpayer. Once CID is done, it's kicked to civil for assessment of the underlying tax liability. See, e.g., Wade Cook (remember him???) justice.gov