Jimmy purposely omitted from his 2019 tax return $40,000 of the gross receipts that he collected as the owner of a restaurant. His 2019 return indicated collective gross receipts of $200,000. The IRS nolonger can pursue Jimmy with the threat of collection of the related tax, interest, and penalties, as of April 15 of what year?
A)2022
B)2025
C)2027
D)2028
E)There is noexpiration date for the statute of limitations in this context.

Question

Quizplus · Accepted Answer

The IRS has no statute of limitations for pursuing taxes in cases of fraud or for filing a false return. Since Jimmy purposely omitted a significant amount of his income, this could be considered fraudulent activity, thus the IRS can pursue him at any time without expiration.

Jimmy Purposely Omitted from His 2019 Tax Return $40,000 of the Gross