Daze filed his personal income tax for 2016 on May 4, 2017. He did not have any reasonable cause for delinquent tax filing. He also inadvertently left out his bonus income $20,000 from reporting on his tax return. His tax return without such bonus income shows $100,000 gross income.

(1) The IRS initiated its audit on Dazes 2016 tax return on June 3, 2020. Does the IRS have authority to audit and possibly litigate Dazes tax return on the omission of the bonus income?

(2) Answer only one of the following two.

i. If so, why?

ii. If not, is there any circumstance under which the IRS would be authorized to conduct an audit?