Latashia reports $100,000 of gross income on her 2017 tax return,filed on the April 17,2018 due date.She omits $30,000 of income,but the error was not fraudulent.When does the statute of limitations for examining her tax return expire?
A)April 17,2020
B)April 17,2021
C)April 17,2024
D)It never expires.

Question

Quizplus · Accepted Answer

C)The six-year statute applies since the omitted income exceeds 25% of the gross income reported.

Latashia Reports $100,000 of Gross Income on Her 2017 Tax