Elena filed her Form 1040, U.S. Individual Income Tax Return, for the 2006 taxable year on...

Elena filed her Form 1040, U.S. Individual Income Tax Return, for the 2006 taxable year on April 15, 2007. On May 15, 2007, the IRS assessed the $10,000 of tax reported by Elena on her 2006 Form 1040. Elena did not make any mistakes on her 2006 Form 1040; however, Elena did not pay the $10,000 tax liability reported on the Form 1040. On January 2, 2010, the IRS filed a Notice of Federal tax Lien against Elena, which attached to all Elena's property. On January 8, 2010, Elena requested for a Collection Due Process hearing before the IRS's Appeals Office. The Appeals Officer ruled against Elena, and Elena did not petition any court to review the Appeals Officer's determination. Assume that the Collection Due Process hearing process ended on February 10, 2010. Question: when did the statute of limitations on collection of Elena's 2006 income tax liability expire?

June 16, 2015.

April 15, 2017.

May 18, 2017,

June 17, 2017.

None of the above.

Solutions

Expert Solution

Given, Elena filed her form 1040, U.S. individual Income tax return for the 2006 tax payable year on April 15, 2007. BUt didnot pay the Income tax of $10,000. IRS filed a notice of federal tax lien against elena which attratcted elena's property.

On january 8 2010 Elena requested for a collection due processing hearing before IRA's appeals Office.

Usually, when a tax of $10,000 or more is not paid, the statutory limitation on such collection is for 10 years from the date when the IRS assess your tax liabilities.

The Actions taken by the tax payers will differ in the Statute of limitations.IF the tax payers requests for collection due proess hearing , the IRS suspends the statute of limitation at the time of hearing. This rule applies if the collection due process hearing request is made within 30 days of levy.

In the given situation, Elena requested for collection due process hearing request within 30 days of levy. So, the suspension of Statutory limitation applies to elena.

So, the Income tax epiration will be 10 years from the Date on which the taxes are assessed + period of hearing

10 years from may 15 2007 will be May 15 2017 and period of hearing is 32 days.

Hence the Income tax liability will expire on June 17, 2017.

Hence option June 17, 2017 is correct while other options are incorrect

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Coastline Community College Acct C103, Individual Taxation Summer 2018 Tax Year 2017 Form 1040 Tax Return...

Coastline Community College Acct C103, Individual Taxation Summer 2018 Tax Year 2017 Form 1040 Tax Return Project Based upon Bill and Susan Minor’s information below, complete a Form 1040 for Tax Year 2017. You will receive 10 points for each correct figure you list on Lines 7, 8a, 12, 21, 37, 40, 42, 43, 63, and 64.Email your completed Form 1040 to me by August 15, 2018. -In 2017, Bill and Susan Minor had W-2 Wages totaling $99,000, Federal Tax...

a calendar-year tax payer filed an individual tax return for 2020 on March 20, 2021. The...

a calendar-year tax payer filed an individual tax return for 2020 on March 20, 2021. The tax payer Neither committed fraud nor omitted amounts in excess of 25% of gross income on the tax return. what is the latest date the internal revenue services can assist tax and assert and notice of deficiency?

If a corporation’s tax return shows taxable income of $104,000 for Year 2 and a tax...

If a corporation’s tax return shows taxable income of $104,000 for Year 2 and a tax rate of 40%, how much will appear on the December 31, Year 2, balance sheet for “Income taxes payable” if the company has made estimated tax payments of $35,900 for Year 2?

(a) Anwar had filed his return of income for the tax year 2013 on 31 August...

(a) Anwar had filed his return of income for the tax year 2013 on 31 August 2013. Discuss the following in the light of provisions of the Income Tax Ordinance, 2001: (i) By which date the Commissioner of Income Tax could make the first amendment of the assessment, if required. (02) (ii) By which date any further amendment can be made if the first amendment was made on 15 February 2017. (02) (b) On 1 December 2017 Bruce Lee was...

Using www.irs.gov, find the publication related to Form 1040 and research how to calculate taxable income...

Using www.irs.gov, find the publication related to Form 1040 and research how to calculate taxable income for individuals. Discuss whether this source is a primary or a secondary source of federal income tax law. Also research the Internal Revenue Code and find the section that defines gross income. Then find another section of the Internal Revenue Code that specifically excludes an item of income from the definition of gross income. Discuss whether the Internal Revenue Code is a primary or...

Could you please prepare tax return form 1040 and other schedules and forms for this problem...

Could you please prepare tax return form 1040 and other schedules and forms for this problem and upload pictures Jorge Gomez is a single taxpayer. His SSN is 412-34-5670, and he lives at 5037 Circle Court, Crestview, IL 60543. He is a supervisor and his W2 for 2017 shows gross wages of $94,850 with $5,881 of social security and $1,375 of Medicare taxes withheld. He has $17,147 of federal withholding and $2,595 in state withholding. Jorge does not itemize. He...

Complete the federal tax return below for 2016. Use Form 1040, Schedule A, Schedule B, and...

Complete the federal tax return below for 2016. Use Form 1040, Schedule A, Schedule B, and Form 2441 to complete this return. You can print these forms off of the IRS website by going to irs.gov and searching for the forms. Lucy and Ricky Van have one child, Leroy, who is 5 years old. The Vans reside at 1234 Huckleberry Street, Kathleen, GA 31047. Ricky’s Social Security number is 577-11-3322, Lucy’s is 477-98-4735, and Leroy’s is 589-22-1142. Lucy and Ricky’s...

Indicate whether the following information is included on the 2020 1040 tax return as Gross Income or excluded from the 2020 1040 tax return. Indicate the specific amount included or excluded.

Indicate whether the following information is included on the 2020 1040 tax return as Gross Income or excluded from the 2020 1040 tax return. Indicate the specific amount included or excluded.Item$ Included as Gross Income$ Excluded from Gross IncomeEarned $45,000 of gross wages from an employer. Received a gift from a grandparent of $10,000 cash. Received a $5,000 signing bonus from an employer. Received child support in the amount of $12,000. Employer-paid health insurance premiums amounted to $15,000 for an...

Taxable income refers to the amount of income reported on a? company's tax return. True or...

Taxable income refers to the amount of income reported on a? company's tax return. True or false?

In 2020, Sheryl is claimed as a dependent on her parents' tax return. Her parents report taxable income of $500,000 (married filing jointly)

In 2020, Sheryl is claimed as a dependent on her parents' tax return. Her parents report taxable income of $500,000 (married filing jointly). Sheryl did not provide more than half her own support. What is Sheryl's tax liability for the year in each of the following alternative circumstances? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, for reference. (Leave no answer blank. Enter zero if applicable.) b. She received $6,000 of interest income from corporate bonds she received...

Subjects