Discussion Question 1-25 State Income Tax - Audit Potential Due to IRS Assessment (LO. 4) In May 2012, Hernando, a resident of California, has his 2010 Federal income tax return audited by the IRS. An assessment of additional tax is made because he had inadvertently omitted some rental income. In October 2012, California audits his state return for the same year. Explain the coincidence. What happened here likely Selectisis not a coincidence. The IRS probably notified the state of California regarding Hernando's omission of income. Thus, California Selectfollowednot followed up with its own audit