Discussion Question 1-45 Tax Practice and Ethical Guidelines - Statute of Limitations (LO. 5, 6) In March 2012, Jim asks you to prepare his Federal income tax returns for tax years 2009, 2010, and 2011. In discussing this matter with him, you discover that he also has not filed for tax year 2008. When you mention this fact, Jim tells you that the statute of limitations precludes the IRS from taking any action as to this year. Is Jim correct about the application of the statute of limitations? (Select: Yes. The statue of limitations is three years from the due date of the return., No. There is no statute of limitations if a return is not filed., or No. The statue of limitations is six years from the due date of the return.) If Jim refuses to file for 2008, should you prepare returns for 2009 through 2011? Yes, because you can correctly reflect the tax liability for returns for 2009 through 2011. SelectYesNo No. You cannot correctly reflect the tax liability due to the omission for 2008. SelectYesNo