Indicate the Date That the Statute of Limitations Would Run

question 41

Essay

Indicate the date that the statute of limitations would run out on the following situations:
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a.The IRS assesses additional taxes for a 2013 tax return audit on May 5, 2015.How long does the IRS have to collect the tax?
b.On April 1, 2015, the IRS asks for and the taxpayer agrees to an additional year to complete an audit for a 2011 tax return which was filed on March 9, 2012.
c.Jeremy reported $10,000 of worthless debt on his 2014 tax return which he filed on August 3, 2015.
d.Jenny files her 2015 tax return on February 25, 2016.
e.James omits 7 percent of his income on his 2013 tax return which he filed on July 12, 2014.

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Definitions:

Fair Value

The agreed-upon price for transferring ownership of an asset or the cost to pass on a liability in a formalized exchange within the marketplace at the time of measure.

Maintenance Expenditures

Funds spent on keeping property, equipment, or machinery in operating condition.

Legal Provisions

Conditions or requirements stated in legal documents, such as laws or contracts.

Equity in Subsidiary Earnings

The portion of income attributable to the parent company from its investment in subsidiaries, after intercompany transactions have been eliminated.