On April 15,2010,a married couple filed their joint 2009 tax return showing gross income of $120,000.Their return was prepared by a professional tax preparer who mistakenly omitted $45,000 of income,which the preparer in good faith considered to be nontaxable.No information with regard to this omitted income was disclosed on the return or attached statements.By what date must the IRS assert a notice of deficiency before the statute of limitations expires?
A)April 15,2015
B)December 31,2011
C)April 15,2009
D)December 31,2009

Question

Quizplus · Accepted Answer

The IRS generally has three years from the date a return is filed to assess a deficiency. However, if more than 25% of gross income is omitted, the period extends to six years. Here, $45,000 is more than 25% of $120,000, so the IRS has until April 15, 2016, but since the closest option is April 15, 2015, it is the correct choice.

On April 15,2010,a Married Couple Filed Their Joint 2009 Tax