R2 - Individual Taxation - Other Items

Question 1

What is generally the statute of limitations for a 1040?

Answer 1

3 years from the later of the due date or when the return was filed

Question 2

What is the statute of limitations for a 1040 if gross income is understated by 25%?

Answer 2

6 years from the later of the due date or when the return was filed

Question 3

T/F: There is no statute of limitations on a fraudulent tax return

Answer 3

True

Question 4

Generally, how long does an individual have to claim a refund?

Answer 4

3 years from the date the return was filed or the original due date or 2 years from the time the tax was paid

Question 5

How long does a taxpayer have to file a claim for a refund for a bad debt or worthless security?

Answer 5

7 years

Question 6

In order to avoid an underpayment penalty, what percentage of a tax liability must be paid in equal installments?

Answer 6

90% of current year tax or 100% of prior year tax (unless AGI $150,000+, then 110% of prior year tax)