Revenue Investigation - Limits?

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What are the rules for Revenue investigations? What type of information can Revenue access and for how long? How does Revenue decide when to investigate?

Revenue investigations can go back up to six years from the date of the investigation. Revenue can access information from the taxpayer, their employers, third parties, and other sources to determine if the taxpayer has failed to declare income or has made any other errors. Revenue can also look at records from previous years to check for discrepancies. Revenue will investigate any taxpayers that they suspect of failing to declare income or making any other errors. They will also investigate any cases that are flagged up by their systems, such as large discrepancies in income or expenditure.

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Revenue can investigate as far back as 20 years, depending on the context.

Generally, if you are under investigation by the Irish Revenue, they can go back to the previous six years, plus four more if the omission appears to be intentional.

If you have been deliberately evading tax, the investigation can span up to 20 years.

You should note that while a normal assessment can be challenged or queried as far as 20 years back, Revenue will normally look for a reasonable period before and after a year, to pick up any trends in the taxpayer's affairs. This includes any errors or inaccuracies in accounting, and to capture any new transactions or transactions in the intervening years, which might alter their findings.

Revenue can also request access to financial records from companies, banks, and third parties, such as solicitors and auditors.

If you find that you are under investigation by Revenue, you should seek immediate professional advice and represent yourself or provide Power of Attorney to a reputable tax adviser who can represent you on your behalf.

For further information and advice, you can reach out to Revenue's Tax and Duty Form Helpline:

• Tel: +353 (1) 738 3670
• Locall: 1890 20 33 03
• Email: form-help@revenue.ie
• Revenue website: https://www.revenue.ie/en/tax/it/forms/form-help.aspx

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The answer can vary depending on your particular situation. Generally, the Internal Revenue Service (IRS) has three years to audit a tax return and up to six years to investigate claims of substantial income under reporting. However, if fraud or intentional misrepresentation is found, it may be possible to go back even further.

The IRS may be able to open an audit or investigation outside of the three-year or six-year window if certain circumstances are met. Commonly, this can happen if the taxpayer omitted more than 25% of their income from the taxes filed. The statute of limitation will not be extended if the taxpayer can prove that their omission was due to mistake or negligence.

If you are being audited or investigated for back taxes, it is important to consult with a tax professional to ensure that you comply with the law. A tax lawyer or accountant can advise you about your rights and ensure that you take the best course of action.

Good luck!