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Mr Hepp, a Self-Employed Consultant, Failed to Include a $38,200

question 15

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Mr Hepp, a self-employed consultant, failed to include a $38,200 income item on his 2017 Form 1040, which he filed on March 9, 2018. The gross income reported on the return was $102,380. What is the latest date that the IRS can assess any additional 2017 tax?


Definitions:

Direct Labor Hour

The actual time spent by workers directly producing a product or providing a service.

Actual Overhead

The actual amount of indirect costs associated with production, including utilities, maintenance, and factory overhead, incurred during a specific period.

Labor Rate Variance

A measure of the difference between the actual cost of labor and the budgeted or standard cost.

Direct Labor

Direct labor costs are the wages and benefits paid to employees who are directly involved in producing goods or providing services.

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