Allen Filed His 2014 Tax Return on May 15th, 2015

question 106

Multiple Choice

Allen filed his 2014 tax return on May 15th, 2015 and underreported his gross income by 30 percent. Assuming Allen's underreporting is not due to fraud, the statute of limitations for IRS assessment on Allen's 2013 tax return should end:

• A) May 15th, 2017.
• B) April 15th, 2017.
• C) May 15th, 2018.
• D) April 15th, 2018.
• E) None of these.

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Definitions:

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Compounded Monthly

A calculation method where interest is added to the principal balance on a monthly basis, resulting in interest on interest.

Equal Payments

A series of payments that are the same in amount, typically made at regular intervals over a specified period of time.

Focal Date

The date selected for the calculation of equivalent values.