The Usual Three-Year Statute of Limitations on Additional Tax Assessments

question 26

Multiple Choice

The usual three-year statute of limitations on additional tax assessments applies in the following situation(s) .

• A)No return at all is filed.
• B)An investment in a marketable security is worthless.
• C)Taxpayer discovers an inadvertent overstatement of deductions equal to 5% of gross income.
• D)Taxpayer inadvertently omits an amount of gross income in excess of 25% of the gross income stated on the return.

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Definitions:

Norris-La Guardia Act

A 1932 U.S. federal law that prohibited employers from requiring employees to sign agreements not to join a labor union and also limited the issuing of court injunctions in labor disputes.

Executive Order 11246

A U.S. presidential order that prohibits federal contractors from discriminating against employees on the basis of race, color, religion, sex, or national origin.

Affirmative Action Plans

Strategies and measures adopted by organizations to improve opportunities for historically marginalized groups by considering those factors in decisions like hiring and promotions.

Disparate Impact Claims

Legal claims that challenge practices that, while neutral in appearance, disproportionately affect a protected group, without a justified business necessity.