Eduardo filed his 2018 tax return on March 15, 2019.Eduardo accidentally omitted $10,000 of income from his individual tax return.The total gross income shown on the tax return was $35,000.When will the statute of limitations expire for Eduardo's 2018 tax return?

Question

Quizplus · Accepted Answer

The statute of limitations for the IRS to assess additional tax expires three years after the due date of the return or the date it was filed, whichever is later. Since Eduardo filed his 2018 tax return on March 15, 2019, and the due date for 2018 returns was April 15, 2019, the statute would normally expire on April 15, 2022. However, because he omitted more than 25% of his income ($10,000 of $45,000 total income), the statute of limitations extends to six years, making the expiration date April 15, 2025.

Eduardo Filed His 2018 Tax Return on March 15, 2019