Peyton has adjusted gross income of $20,000,000 on his 2014 tax return,filed April 15,2015.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 15,2017
B)until April 15,2018
C)until April 15,2021
D)The IRS can audit Peyton's return at any future date.

Question

Quizplus · Accepted Answer

The IRS has three years from the date the tax return was filed or the due date, whichever is later, to audit the return. In this case, Peyton filed his return on April 15, 2015, so the IRS has until April 15, 2018, to audit his return.

Peyton Has Adjusted Gross Income of $20,000,000 on His 2014