How Far Back Can The Government Audit You?
The government is one of those government organizations that most people really don’t want to have to deal with, especially if the word audit is involved. It is important to note that just because you are being audited doesn’t mean that you’ve actually done anything wrong. In fact, it is common for them to randomly select people to be audited in various ways. This practice has become very popular in recent years and many people need to know how far back can the government audit you?
The Number Of Years Varies Between Businesses And Individuals
If you are just a regular person then the statute of limitations is less than that for a business. It is highly recommended that you save all your financial documents going back for at least seven years so that you have proof to show them. Not having this documentation can draw out the process and make it very difficult for you to prove that you actually qualifies for deductions or credits. After that time period it is generally accepted that you can get rid of those documents. Some people choose to never get rid of their info so that how far back can the government audit them isn’t even a problem.
Keep Detailed Records As Well
Even if you feel that the basic information will be enough, the more you have the better. While you may be able to scrape by with just the bare bones, it will certainly speed up the process having as much documentation on hand as possible. That way there will be no reason for the government to question you at all. So, how far back can the government audit you? Not really that far.