Walter did not file his 2017 tax return that was due April 17, 2018 until June 2, 2018.
A) When does the statute of limitations expire for this return assuming he did not file for an automatic extension?
B) When does the statute of limitations expire if Walter forgot to report a land sale that occurred on January 10, 2017? He had a $20,000 gain on the transaction and he reported gross income for 2017 of $75,000?
C) When does the statute of limitations expire if Walter deliberately omitted the $20,000 gain on the land sale?

Question

Quizplus · Accepted Answer

B  CThe statute of limitations for a tax return is generally three years from the date the return was filed or the due date, whichever is later. For A, since Walter filed on June 2, 2018, the statute expires on June 2, 2021. For B, if the omitted income exceeds 25% of the reported gross income, the statute extends to six years, expiring on June 2, 2024. For C, if the omission is deliberate (fraud), there is no statute of limitations.

Walter Did Not File His 2017 Tax Return That Was