Allen filed his 2019 tax return on May 15^th, 2020, and underreported his gross income by 30 percent.Assuming Allen's underreporting is not due to fraud, the statute of limitations for IRS assessment on Allen's 2019 tax return should end:

Question

Quizplus · Accepted Answer

Normally, the statute of limitations for the IRS to assess taxes on a filed return is 3 years from the due date of the return or the date it was filed, whichever is later. However, if a taxpayer underreports their gross income by more than 25%, the statute of limitations extends to 6 years. Since Allen underreported his income by 30%, the correct statute of limitations would be 6 years from the filing date (May 15, 2020), which would be May 15, 2026. None of the provided choices reflect this correct date.

Allen Filed His 2019 Tax Return on May 15th, 2020

Allen Filed His 2019 Tax Return on May 15^th, 2020