In March 2014, Jim asks you to prepare his Federal income tax returns for tax years 2011, 2012, and 2013. In discussing this matter with him, you discover that he also has not filed for tax year 2010. When you mention this fact, Jim tells you that the statute of limitations precludes the IRS from taking any action as to this year.
a. Is Jim correct about the application of the statute of limitations? Why or why not?
b. If Jim refuses to file for 2010, should you prepare returns for 2011 through 2013? Explain.