Mr. Hepp, a self-employed consultant, failed to include a $38,200 income item on his 2012 Form 1040, which he filed on March 9, 2013. The gross income reported on the return was $102,380. What is the latest date that the IRS can assess any additional 2012 tax?

Question

Quizplus · Accepted Answer

The IRS generally has three years to assess additional tax, but if the taxpayer omits more than 25% of gross income, the period extends to six years. Since Mr. Hepp omitted more than 25% of his gross income, the IRS has until April 15, 2019, to assess additional tax.

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