Linney Corporation,which Uses a June 30 Fiscal Year End for Tax

question 23

Multiple Choice

Linney Corporation,which uses a June 30 fiscal year end for tax purposes,requested an automatic six-month extension of time to file its return for FYE June 30,2017.It filed the return on February 18,2018.The revenue agent that examined the return suspects that Linney may have substantially underreported income for the year.Which of the following is false?

• A)If the underreporting of income constitutes fraud,there is no statute of limitations,and the IRS can assess additional tax at any time.
• B)If the amount of unreported income exceeds 25% of the gross income reported on the return,the IRS has until February 18,2024,to assess additional tax.
• C)If the amount of unreported income is less than 25% of the gross income reported on the return and the return is not fraudulent,the IRS has until September 15,2020,to assess additional tax.
• D)None of the above is false.

---

Definitions:

Virgin Materials

Raw materials that have never been processed or used before, often extracted directly from the Earth.

Hazardous Wastes

Hazardous wastes are materials that are dangerous or potentially harmful to people's health or the environment, often requiring special handling and disposal procedures.

Less-Hazardous Substances

Chemicals or materials that pose a lower risk to human health and the environment compared to their more dangerous counterparts.

Plastic

Synthetic or semi-synthetic organic compounds that are malleable and so can be molded into solid objects of diverse shapes, widely used for a variety of applications.