Here is what you have the right to know:
- When the IRS has finished an audit.
- The maximum amount of time you have to challenge the IRS’ position.
- How long the IRS can audit a particular tax year
- How long the IRS can collect on a tax debt.
- The IRS generally has 3 years to assess any additional tax from the date you file a return.
- Exceptions to the 3 years include filing a false or fraudulent return. The IRS is then able to assess tax for that tax year at any time.
- The IRS generally has 10 years from the date of assessment to collect any unpaid tax balance.
- The above 10-year period cannot be extended unless you as the taxpayer agree as part of an installment agreement or a court judgment allows for it.
- This 10-year period can be suspended at times which include when a taxpayer files for bankruptcy, there is an ongoing collection due process proceeding and the taxpayer is before the US Tax Court.
- An IRS statutory notice of deficiency lets a taxpayer know how much the IRS is proposing additional tax due. This notice is to include the deadline for filing a petition with the tax court and it cannot be changed.
- A taxpayer is supposed to be subject to no more than one audit per tax year and the IRS will only reaudit in certain circumstances which include when a taxpayer files a fraudulent return.
See, IRS Taxpayer Bill of Rights.