If you are claiming a deduction or credit, you are required by law to maintain the documentation proving that you qualify for that deduction.[1] If you can't provide that documentation, they can reject the deduction because there's no proof that you are actually entitled to that deduction. Your word that you super-duper remember having a capital loss 20 years ago that you can still deduct on your current return isn't good enough. They're not "compelling" you to allow your previous 20 years of returns to be audited, they're just upholding the law.
And quite frankly, they aren't going to audit anyone for 20 years of returns over $3000. They don't have the manpower for that.
[1] Once the SOL expires, you can discard that documentation. Tax advisors will generally tell you to keep your documentation for 7 years from when you receive it (because the 6 year window starts in the following year when you file the tax return including that information.)
If you are claiming a deduction or credit, you are required by law to maintain the documentation proving that you qualify for that deduction.[1] If you can't provide that documentation, they can reject the deduction because there's no proof that you are actually entitled to that deduction. Your word that you super-duper remember having a capital loss 20 years ago that you can still deduct on your current return isn't good enough. They're not "compelling" you to allow your previous 20 years of returns to be audited, they're just upholding the law.
And quite frankly, they aren't going to audit anyone for 20 years of returns over $3000. They don't have the manpower for that.
[1] Once the SOL expires, you can discard that documentation. Tax advisors will generally tell you to keep your documentation for 7 years from when you receive it (because the 6 year window starts in the following year when you file the tax return including that information.)