If a taxpayer understates gross income by 25 percent, the IRS has a 6-year statute of limitations on assessment.

Name: If a taxpayer understates gross income by 25 percent, the IRS has a 6-year statute of limitations on assessment.
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The IRS normally has a 3-year statute of limitations to audit tax returns, but if a taxpayer understates their gross income by more than 25%, the statute of limitations is extended to 6 years.

If a Taxpayer Understates Gross Income by 25 Percent, the IRS