Latashia reports $100,000 of gross income on her 2018 tax return, filed on the April 17, 2019 due date. She omits $30,000 of income, but the error was not fraudulent. When does the statute of limitations for examining her tax return expire?

Question

Quizplus · Accepted Answer

The statute of limitations for the IRS to examine a tax return is generally three years. However, if a taxpayer omits more than 25% of their gross income, the period extends to six years. Since Latashia omitted $30,000, which is 30% of her gross income, the statute of limitations extends to six years, expiring on April 17, 2025.

Latashia Reports $100,000 of Gross Income on Her 2018 Tax