Complete Question:
Allen filed his 2019 tax return on May 15th, 2020, 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 2019 tax return should end:
May 15th, 2022.
April 15th, 2022.
May 15th, 2023.
April 15th, 2023.
None of the choices are correct.
Answer:
None of the choices are correct.
Explanation:
Because Allen has under-reported 30 percent of its gross revenue, SOL expires six years after
(1) the date of filing of the tax return, or
(2) the initial tax return times.
Gross revenue is the net sales recorded before any losses for a reporting period. This number shows the potential of an organization, but never the ability to create income, to sell products. Gross revenue allowances cover sales and revenue concessions.
