Peyton has adjusted gross income of $2,000,000 on his 2016 tax return,filed April 15,2017,the due date.He accidentally failed to include $200,000 that he received for a television advertisement.How long does the IRS have to audit Peyton's federal tax return?
A)until April 15,2019
B)until April 15,2020
C)until April 15,2023
D)The IRS can audit Peyton's return at any future date.

Question

Quizplus · Accepted Answer

The IRS has 3 years from the due date or the filing date (whichever is later) to audit a tax return. In this case, the due date for Peyton's 2016 tax return was April 15, 2017, so the IRS has until April 15, 2020 to audit his return.

Peyton Has Adjusted Gross Income of $2,000,000 on His 2016