Linney Corporation, Which Uses a June 30 Fiscal Year End

question 42

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, 2015. It filed the return on February 18, 2016. 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, 2022, 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, 2019, to assess additional tax.
• D) None of the above is false.

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Definitions:

Disclose

The act of making information or data known or public, especially that which was previously hidden or secret.

Going Rogue

Going against the norm of expectations of society while initiating behaviors that are considered to be out of norm or against social, personal, and professional expectations; going off script on social media without permission and not in an official capacity.

AltNationalParkServices

A movement started by activists and environmentalists to safeguard national parks and environmental policies, often utilizing social media for advocacy and information dissemination.

Social Media Policy

Guidelines issued by an organization for its employees and other stakeholders on how to behave on social media platforms.