Allen filed his 2016 tax return on May 15^th, 2017 and underreported his gross income by 30 percent. Assuming Allen's underreporting is not due to fraud, the statute of limitations for IRS assessment on Allen's 2016 tax return should end:

Question

Quizplus · Accepted Answer

Since Allen underreported his gross income by 30 percent, the statute of limitations (SOL) ends six years from the later of (1) the date the tax return was filed or (2) the tax return's original due date. It means that the SOL for the IRS assessment on Allen's 2016 tax return would end on October 15, 2023, which is the later of the two dates (May 15, 2017, and April 17, 2017 - the original due date of the return). Therefore, option E - none of the above - is the best choice.

Allen Filed His 2016 Tax Return on May 15th, 2017

Allen Filed His 2016 Tax Return on May 15^th, 2017