Article Date:
October 2009

Word Count:



IRS Audits Expanded to Six Years for Overstatement of Basis

In applying the six-year statute of limitations to taxpayers who overstated their basis in sold assets, the IRS recently experienced mixed results in the courts. In an attempt to get all the courts on the same page, the IRS issued new regulations effective September 24, 2009.


Under the new regulations, the IRS clarifies its stance that an understatement of gross income includes the understatement of gain from the sale of an asset when the basis of that asset is overstated.1


Example. John ... Log in to view full article.

Log in to view full article

Already a subscriber?

Email Address


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
with a money-back guarantee