Use of Trusts and Fraud Can Extend IRS Audit Period

The standard three year statute of limitations for IRS audits may be extend to six years and beyond in certain situations. Situations that can extend the audit process include not filing a return, and tax fraud or other criminal violations, which extends the limit to six years. Foreign accounts complicate the issue and using trusts to conceal assets can extend the limitations period by delaying the start date for the limitations to begin to run as the trust creates new acts of tax evasion.

See Robert W. Wood, IRS Can Audit For Three Years, Six . . . Or Forever, Forbes, Dec. 15, 2014.