Indicate the Date That the Statute of Limitations Would Run

question 35

Essay

Indicate the date that the statute of limitations would run out on the following situations:
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a. The IRS assesses additional taxes for a 2012 tax return audit on May 5, 2014. How long does the IRS have to collect the tax?
b. On April 1, 2014, the IRS asks for and the taxpayer agrees to an additional year to complete an audit for a 2010 tax return which was filed on March 9, 2011.
c. Jeremy reported $10,000 of worthless debt on his 2013 tax return which he filed on August 3, 2014.
d. Jenny files her 2014 tax return on February 25, 2015.
e. James omits 7 percent of his income on his 2012 tax return which he filed on July 12, 2013.

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Definitions:

Entrepreneurs

Individuals who start, organize, manage, and assume the risk for a business venture.

Risky Activities

Actions or endeavors that involve a significant chance of loss or failure, often assessed in financial, business, or recreational contexts.

Profits

Income achieved when the total revenue from a business endeavor is greater than the expenses, costs, and taxes involved in supporting the endeavor.

Heart Transplants

involves the surgical procedure of replacing a diseased heart with a healthy one from a donor.