Latashia reports $100,000 of gross income on her 2018 tax return,filed on the April 15,2019 due date.She omits $30,000 of income,but the error was not fraudulent.When does the statute of limitations for examining her tax return expire?

Question

Quizplus · Accepted Answer

The statute of limitations for the IRS to assess additional tax is generally three years. However, if a taxpayer omits more than 25% of their gross income, the period is extended to six years. Since Latashia omitted $30,000, which is 30% of her gross income, the statute of limitations is extended to six years, expiring on April 15, 2025.

Latashia Reports $100,000 of Gross Income on Her 2018 Tax