Peyton has adjusted gross income of $2,000,000 on his 2017 tax return,filed April 17,2018,the due date.He accidentally failed to include $200,000 that he received for a television advertisement.How long does the IRS have to audit Peyton's federal tax return?
A)until April 17,2020
B)until April 17,2021
C)until April 17,2024
D)The IRS can audit Peyton's return at any future date.

Question

Quizplus · Accepted Answer

B)The omission does not exceed 25% of reported gross income,so the three-year statute still applies.Since the omission was accidental,the rules for fraud do not apply.

Peyton Has Adjusted Gross Income of $2,000,000 on His 2017