6-YEAR STATUTE OF LIMITATIONS
How Long Does a Taxpayer Have to Maintain Tax Documentation to Support Tax Return?
A question taxpayers often ask is “How long must I maintain my tax records?” Unfortunately, there is not one answer, except, “It depends.” In most cases, maintaining three years of tax records is sufficient. If you own assets that are used in your business, the statute of limitations (SOL) could be five, seven, 27.5, or 39 years. If a taxpayer is found to file a fraudulent tax return, then the SOL never expires.
In the case of Manashi, U.S. Tax Court Docket No. 13034-13, the taxpayer was introduced to the 6-year SOL rules. Robert Manashi owned [Read more…] about 6-YEAR STATUTE OF LIMITATIONS