Problem 12-8 Statute of Limitations (LO 12.4)

1. From the dropdown lists, select the date the statute of limitations will run out on each of the following 2020 individual tax returns:

a. A fraudulent tax return that was filed April 15, 2021.

April 15, 2023 April 15, 2025 April 17, 202 April 17, 2024 Never

b. A tax return that was filed May 19, 2021.

April 15, 2024 May 19, 2024 May 19, 2025 April 15, 2023Indefinitely

c. A tax return that was filed February 12, 2021.

February 12, 2023 February 12, 2024 April 15, 2023 April 15, 2024Indefinitely

d. A tax return that was filed March 1, 2021, and omitted $15,000 in income. The total gross income shown on the tax return was $50,000.

March 1, 2024 April 15, 2024 March 1, 2027 April 15, 2027Indefinitely

2. Which of the following amounts paid by an employer to an employee is not subject to withholding?

a.Salary

b.Bonus

c.Commissions

d.Travel expense reimbursements from an accountable plan

e.All of these choices are subject to withholding.