<u>E) </u><u>None of the choices are correct.</u>
Because Allen underreported his gross income by 30 percent, the statute of limitations (SOL) ends six years from the later of
(i) the date the tax return was filed or,
(ii) the tax return's original due date.
<h3><u>Why Is the Internal Revenue Service (IRS) Important?</u></h3>
Tax collection and law enforcement are the responsibilities of the Internal Revenue Service (IRS), a branch of the American government (such as the wash sale rule). Abraham Lincoln, the country's sixteenth president, established the agency in 1862. It is governed by the U.S. Department of the Treasury and is primarily responsible for collecting employment and individual income taxes. Estate, gift, corporate, and excise taxes are all managed by the IRS.
<u>How likely is it that the IRS will check my taxes?</u>
The audit rate for individual tax returns in 2020 was 0.63 percent. However, if you earn a lot of money, your chances improve. For those earning $10 million or more in 2020, the rate was 9.8%. The IRS won't audit you based on a single factor, though.
Learn more about IRS with the help of the given link:
brainly.com/question/3806004
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<u>Correct question:</u>
Allen filed his 2021 tax return on May 15th, 2022, 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 2021 tax return should end:
A)May 15th, 2023.
B)April 15th, 2023.
C)May 15th, 2024.
D)April 15th, 2024.
E)None of the choices are correct.
