Eduardo filed his 2013 tax return on March 15,2014.Eduardo accidentally omitted $10,000 of income from his individual tax return.The total gross income shown on the tax return was $35,000.When will the statute of limitations expire for Eduardo's 2013 tax return?
A)March 15,2017
B)March 15,2020
C)April 15,2017
D)April 15,2020

Question

Quizplus · Accepted Answer

The statute of limitations for income tax returns is generally three years from the due date of the return or the date the return was filed, whichever is later. In this case, Eduardo filed his tax return on March 15, 2014, so the statute of limitations would expire three years later on March 15, 2017. However, because Eduardo omitted more than 25% of his gross income on his return, the statute of limitations is extended to six years from the date the return was filed. Therefore, the statute of limitations for Eduardo's 2013 tax return would expire on April 15, 2020.

Eduardo Filed His 2013 Tax Return on March 15,2014