Identify which of the following statements is true.
A)The statute of limitations, which stipulates the time frame within which either the government or the taxpayer may request a redetermination of tax due, usually expires six years after the date on which the return is filed.
B)The statute of limitations limits the time during which a taxpayer may claim a refund of an overpayment of tax.
C)If a taxpayer omits from gross income an amount in excess of 25% of the gross income shown on his return, the statute of limitations is five years.
D)All of the above are true.

Question

Quizplus · Accepted Answer

The statute of limitations indeed limits the time during which a taxpayer may claim a refund of an overpayment of tax, typically within three years from the time the return was filed or two years from the time the tax was paid, whichever is later. Choices A and C contain inaccuracies regarding the duration of the statute of limitations for tax redeterminations and the specific conditions under which it can be extended.

Identify Which of the Following Statements Is True