Walter did not file his 2018 tax return that was due April 15, 2019 until June 2, 2019.
A)When does the statute of limitations expire for this return assuming he did not file for an automatic extension?
B)When does the statute of limitations expire if Walter forgot to report a land sale that occurred on January 10, 2018? He had a $20,000 gain on the transaction and he reported gross income for 2018 of $75,000?
C)When does the statute of limitations expire if Walter deliberately omitted the $20,000 gain on the land sale?

Question

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B  CA) The statute of limitations for a tax return is generally three years from the date the return was filed. Since Walter filed on June 2, 2019, the statute of limitations would expire on June 2, 2022.B) If Walter forgot to report a substantial amount of income (more than 25% of his gross income), the statute of limitations is extended to six years. The $20,000 gain is more than 25% of his reported $75,000 income, so the statute of limitations would expire on June 2, 2025.C) If Walter deliberately omitted income, there is no statute of limitations for fraud. Therefore, the IRS can audit the return at any time.

Walter Did Not File His 2018 Tax Return That Was