Full question:
During an IRS examination; Is it legal for them to secretly record the conversation between the examiner and the taxpayer without advising the taxpayer? If different legality (US vs Iowa ) which would apply? Last but not least how far back can they go looking for small mistakes amounting to 2 to 300 dollars in deductions caused by incorrect listing where taxpayer failed to reduce deductions by 50% when occupying part of a duplex in 2004 not intentional fraud; as in falsely or failing to report -income- evasion etc?
- Category: Civil Rights
- Subcategory: Privacy
- Date:
- State: National
Answer:
Generally, the IRS has a three-year statute of limitations for auditing a tax return and a ten-year statute for collecting tax. If a taxpayer omits more than twenty-five percent of their gross income, the statute of limitations extends to six years under section 6501(e) of the Tax Code. If the IRS prepares a return under section 6020(b), the statute of limitations does not apply (see section 6501(b)(3)). The statute does not apply to false or fraudulent returns filed with the intent to evade tax (section 6501(c)(1)). For assessments made after November 5, 1990, the IRS cannot collect or levy any tax ten years after the assessment date (section 6502(a)(1)). The ten-year period can be extended by agreement between the taxpayer and the IRS before it expires (section 6501(c)(4)).
Regarding recording conversations, under federal law, non-consensual interception of communications is restricted to investigations of specific felonies listed in 18 USC § 2516, which do not include tax crimes.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.