Almost everything has a statute of limitations....
But evidently no one has a statute of limitations with the IRS.
My brother serve in theater in Iraq for almost all of 2003. His taxable income(stateside), for 2003 was about $4,000.
Well . . . he got a notice today that the IRS withheld $191 of his refund this year to pay for his "short-form", filing, which was done by H&R Block, in 2003.
So, in a matter of speaking we're all John Val John, inthat the IRS evidently has a very long reach . . . An exceedingly long time, to review filed tax forms from 2003.
Let's see . . . I had my first job in 1966(when I was in 9th grade).
I sure hope I don't have to worry abut the IRS contacting me for ten years past . . . or 47 years past for a past due amount.
At a very quick glance, it might appear that the IRS can *supposedly* only go back a max of 10 years. Does that mean they don't go further? Doubt it. Is it worth spending more in attorney fees than the withholding? Depends on the individual.
I'll never forget the time I got a full audit.
I had just gotten married, just moved, my wife just moved, I bought a house, it was our turn to claim my step-daughter and my secretary has done "funny" stuff the previous year with the payroll taxes . . . all sorts of red flags.
ANYWAY . . . I got though the audit and the field supervisor informed us, later, that it was a no change audit.
Well, about 3 weeks later she was overturned by her supervisor and they requested I send them about $800 due. The disallowed some deductions that my accountant said were rather standard deductions.
My accountant said he's seen it before. It's like they still want their little bit of blood to have made it(the audit), worthwhile.
From that day forward, I never had employees ever again . . . or I might say, my employees never had a job(with me), ever again.
I was bound and determined NEVER to become "non-compliant", ever again.
When they issue a letter to notify you of a discrepancy, it will not end until it has been resolved.
Just so you know, if you ever have an audit always ask to see the ID of the person you are talking to. Obviously an IRS employee, right, in a secure Federal building with guards and all, so why ask them for their ID? Because some are simply auditors, and some are criminal investigators. In the last case you walk out and let your attorney handle it.
