Walter Did Not File His 2017 Tax Return That Was

question 22

Multiple Choice

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?

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Definitions:

Consumption Behavior

The patterns and habits that consumers exhibit in purchasing and using goods and services.

High-calorie Items

Foods or beverages that are densely packed with calories, often with high levels of fat or sugar.

Marginal Utility

The additional satisfaction or benefit (utility) a consumer receives from consuming one additional unit of a good or service.

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The cost at which diamonds are sold or bought, influenced by several factors including quality, supply, and demand.