Mr Hepp, a self-employed consultant, failed to include a $38,200 income item on his 2017 Form 1040, which he filed on March 9, 2018. The gross income reported on the return was $102,380. What is the latest date that the IRS can assess any additional 2017 tax?

Question

Quizplus · Accepted Answer

The $38,200 omitted income exceeds 25% of the gross income reported on the return. Consequently, the statute of limitations extends to six years from the later of the date the return was filed or the April 17 statutory filing date.

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