Mr. Hepp, a self-employed consultant, failed to include a $38,200 income item on his 2019 Form 1040, which he filed on March 9, 2020. The gross income reported on the return was $102,380. What is the latest date that the IRS can assess any additional 2019 tax?

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According to the statute of limitations, the IRS has three years from the date of filing or the original due date of the tax return (whichever is later) to assess any additional tax. In this case, the return was filed on March 9, 2020, which means the original due date was April 15, 2020. Therefore, the IRS has until April 15, 2023, to assess any additional tax. However, since Mr. Hepp failed to include a significant income item, the IRS may have up to six years to assess any additional tax under IRC Section 6501(e)(1)(A). Therefore, the latest date the IRS can assess any additional tax is April 15, 2026. The best choice is D.

Mr Hepp, a Self-Employed Consultant, Failed to Include a $38,200