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

question 72

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 30% of gross income.
• D) Taxpayer inadvertently omits an amount of gross income equal to 30% of the gross income stated on the return.