Keepert uses "two sets of books." She only reports one-half of her cash sales on the records that she uses to complete her Federal income tax return. The statute of limitations for Keepert's return is six years.

Question

Quizplus · Accepted Answer

This statement is true because Keepert is not reporting all of her cash sales on her Federal income tax return, which is illegal. The statute of limitations for her return is six years, meaning that the IRS has up to six years to audit and investigate her tax returns.

Keepert Uses "Two Sets of Books