The government can perform a tax audit for only a certain period of time after taxes have been submitted. This is the statute of limitations and can be towards the benefit of the taxpayer if an error in taxes has occurred. The main statute of limitations in which most people are interested in is the one which regulates how long the government has to bring someone to court over a tax matter. This is a window of time that is 3 years from the time the taxes were files. The IRS cannot run a tax audit without the approval of courts within the first 3 years.
Another statute of limitations which is fairly important is the time period of which the government has to collect taxes that are owed by someone. This time period is 10 years which may seem like a long time. The truth is that a collection could go many years without an attempt to collect the debt if there are several thousands of people who need to be collected from. People who have gone the 10 years without paying the debt for taxes can virtually get away without paying the taxes and will not need to worry about any fees.
It is up to the government to follow their own rules and regulations that are outlined within the statute of limitations. The last day that the IRS can collect an overdue debt on tax is important and must be closely monitored by those who have not paid off their taxes. If they can go for the period of time required to collect the taxes without having the IRS go after them, they will not need to pay the taxes. Larger corporations have a harder time going a very long time without being audited.