Mr. Hepp, a self-employed consultant, failed to include a $38,200 income item on his 2014 Form 1040, which he filed on March 9, 2015. The gross income reported on the return was $102,380. What is the latest date that the IRS can assess any additional 2014 tax?

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The general rule is that the IRS has three years from the date a return is filed to assess any additional tax. Therefore, the IRS has until April 15, 2018, to assess any additional 2014 tax for Mr. Hepp's return. However, since Mr. Hepp filed his 2014 Form 1040 after the April 15, 2015, deadline for filing the return, the statute of limitations is extended to six years from the date the return is filed. Therefore, the latest date the IRS can assess any additional 2014 tax for Mr. Hepp's return is April 15, 2021. The correct answer is D.

Mr Hepp, a Self-Employed Consultant, Failed to Include a $38,200