For the 2016 Tax Returns, Indicate When the Statute of Limitation

question 94

Essay

For the 2016 tax returns, indicate when the statute of limitation expires and why.
a. Phoenix filed his tax return on February 28, 2017.
b. Jill and Randy filed their tax return on August 16, 2017.
c. Although required to file, Catherine chose not to file a tax return this year because she was expecting a tax refund and could not pull together all the information needed to file the return.
d. Jerry filed his tax return on May 22, 2017 but has accidentally underreported his taxable income by 30%.

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Definitions:

Net Income

The net income of a company once all costs and taxes are subtracted from the total income.

Beginning Inventory

The estimated financial value of items ready to be sold at the onset of a ledger year.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific moment, showing assets, liabilities, and shareholders' equity.

Adjusted Trial Balance

A statement listing all accounts and their balances after adjustments, used to verify the equality of debits and credits before generating financial statements.