In March 2019, Jim asks you to prepare his Federal income tax returns for tax years 2016 to 2018.

In March 2019, Jim asks you to prepare his Federal income tax returns for tax years 2016 to 2018.

Category:
January 21, 2022
4 Views
0
0

In March 2019, Jim asks you to prepare his Federal income tax returns for tax years 2016 to 2018. In discussing this matter with him, you discover that he also has not filed for tax year 2015. When you mention this fact, Jim tells you that the statute of limitations precludes the IRS from taking any action as to this year.

a. Is Jim correct about the application of the statute of limitations? Why or why not?
b. If Jim refuses to file for 2015, should you prepare returns for 2016 through 2018? Explain.

Answer and ExplanationSolution by a verified expert

Explanation
The general rule is that the statute of limitations on IRS collections runs for ten years i.e, the IRS can still collect ones unpaid taxes for up to a period of ten years from the date the taxes were assed.

Even if the time limit was rightful, it is very unprofessional and unethical for Jim t deliberately fail to file his taxes with a hidden agenda that the statute of limitations will be applied on them so that he does not pay the taxes. This is because it is the obligation of all the right minded citizens t pay taxes

link

https://www.nolo.com/legal-encyclopedia/time-limits-irs-collections.html#:~:text=Usually%20the%20IRS%20has%20ten%20years%20to%20collect%20money%20you%20owe.&text=As%20a%20general%20rule%2C%20there,the%20date%20they%20were%20assessed.

Answer
Jim is very wrong about the application of the statute of IRS.

This is because the statute of limitations runs for ten years and worst still its very unethical for him to engage in such activity.

Purchase this answer to view it.
Click the button to login/signup and buy full solution at 2 USD only.

The Best Research Paper Writing Service

Would you want to pay someone to write your paper professionally from scratch? 100% Original and 0% AI Content!.

🎓 Write my Essay
📚 Write my Persuasive Essay
📋 Humanize AI Content for Turnitin
💻 Write my Reflective Essay
📑 Write my Research Paper
📜 Write my Thesis Paper
📘 Write my Dissertation
📋 Write my Case Study
📝 Write my Online Exam
✒️ Write my Term Paper
Write my Paper