People are always asking how long the IRS can wait from the time
you file your return to conduct an audit of your income and
expenses. The simple, most definitive answer is "it all
depends," so let's take a look at the rules.
The time in which the IRS must conduct its audit is governed by
what's known as a "statute of limitations."
That statute doesn't begin to run until you actually file a
return. Once you file a return, the IRS has three years from
the time the return was filed (or, April 15th of the year in
which you file, if it is filed early) to conduct and complete an
audit. That means that the IRS has to select your return for
examination, conduct whatever level of audit it is going to
perform, and either get an agreement from you to an additional
amount of tax or a refund, secure an extension of limitations
period from you, or issue you a document known as a "Notice of
Deficiency" (indicating what it has determined your correct
tax liability to be and
