Define "Fraudulent Tax Return"?

[AZ-Tax]

2. Tax records: Just because you got a refund (or paid a bill) does not mean you are finished with your tax return. The other extreme affects people who believe that because the paperwork involves the Internal Revenue Service it must be kept for a lifetime.

Assuming you are not filing fraudulent returns -- for which there is no statute of limitations -- your income tax return boils down into several different types of paperwork. Remember, too, that most tax preparers and accountants keep copies of your documents for the life of your relationship, so there may be a backup of older documents even if you shred your paper copies.

http://finance.yahoo.com/taxes/article/112541/financial-records-you-can-trash-marketwatch?mod=taxes-advice_strategy

So TP donates what they believe if $1000 of FMV items. 10 yrs down the road the IRS audits them and they have no proof they ever had the items to donate. Is that a fraudulent tax return?

[JohnH]

The statute runs on that deduction after 3 years.

[MilTaxEA]

The IRS has a policy (Policy Statement 5-133) not to audit returns beyond six years without special permission.

[New York Enrolled Agent]

The IRS has a policy (Policy Statement 5-133) not to audit returns beyond six years without special permission.

The policy statement you reference is one of the policy statement for collections. It addresses the period in which to secure returns from non-filers. It does not refer to the statutes for assessing additional tax on filed returns.

[MilTaxEA]

The policy statement you reference is one of the policy statement for collections. It addresses the period in which to secure returns from non-filers. It does not refer to the statutes for assessing additional tax on filed returns.

Woops, thanks for the correction.

[taxea]

2. Tax records: Just because you got a refund (or paid a bill) does not mean you are finished with your tax return. The other extreme affects people who believe that because the paperwork involves the Internal Revenue Service it must be kept for a lifetime.

Assuming you are not filing fraudulent returns -- for which there is no statute of limitations -- your income tax return boils down into several different types of paperwork. Remember, too, that most tax preparers and accountants keep copies of your documents for the life of your relationship, so there may be a backup of older documents even if you shred your paper copies.

http://finance.yahoo.com/taxes/article/112541/financial-records-you-can-trash-marketwatch?mod=taxes-advice_strategy

So TP donates what they believe if $1000 of FMV items. 10 yrs down the road the IRS audits them and they have no proof they ever had the items to donate. Is that a fraudulent tax return?

1. IRS would not be auditing a return 10 years down the road unless a more current return has already lead them to believe that the tp is filing fraudulent returns.
2. If the tp cannot prove otherwise and the IRS can then, yes, it is