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Practical IRS audit limit

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  • Practical IRS audit limit

    I understand under laws passed by congress IRS has 3 years to audit, unless if you did not report 25% or more of your income, in that case they have 6 years and they can audit with no time limit if you never filled a return.

    However in the IRS manual there is the following rule

    "To insure that returns are examined within the 3 year statute of limitations, IRM 4.10.2.2.2-1 requires that the examination and disposition of individual income tax returns be completed within 26 months after the due date of the return or the date filed, whichever is later."

    Based on their internal policy, if one did not under report income and did file their tax return, they can be safe to assume that an audit will not occur after 26 months from the April 25th or their file date?
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