How far back can the IRS audit my tax returns?

The IRS generally has 3 years from the date you filed your return (or the due date, whichever is later) to initiate an audit. This is called the Assessment Statute Expiration Date (ASED). However, several exceptions extend this period: 6 years if you underreported income by more than 25% of gross income, 6 years if you failed to report more than $5,000 of foreign financial asset income, and unlimited time if you filed a fraudulent return, willfully attempted to evade tax, or failed to file a return at all. Additionally, if you file an amended return, the IRS gets an additional 60 days from the date it's filed (or the remaining statute period, whichever is longer). If you signed a Form 872 (Consent to Extend the Time to Assess Tax), the statute is extended for the agreed period. In practice, most IRS audits focus on returns filed within the last 2-3 years. The IRS rarely goes back more than 6 years unless fraud is suspected. Always keep your tax records and supporting documents for at least 7 years to be safe.