Latashia reports $100,000 of gross income on her 2015 tax return,filed April 15,2016.She omits $30,000 of income,but the error was not fraudulent.When does the statute of limitations for examining her tax return expire?
A)April 15,2018
B)April 15,2019
C)April 15,2022
D)It never expires.

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 six-year statute applies, expiring on April 15, 2022.

Latashia Reports $100,000 of Gross Income on Her 2015 Tax