What's the statute of limitations for audits?

What's the statute of limitations for audits?

Regarding audits, the statute of limitations is three years from the time your return is filed. After three years, unless there's an omission of 25 percent or more of your gross income, the statute is closed. However, if you omit 25 percent or more of your gross income on your return, then the statute of limitation is six years. So, in most cases, four years is long enough to keep your records. If you're running close to the line, I'd suggest six years. However, be advised that if there is tax fraud involved, then there is no statute of limitations on it.