REG 2 - Individual Taxation: Other Items

Question	Answer
What is the statute of limitations for general issues with tax returns?	Three years from the later of the due date of the return or the date the return is filed (including amendments)
What is the statute of limitations when there is a 25% understatement of gross income?	Six years from the later of the due fate of the return or the date the return is filed.
What is the statute of limitation on fraudulent or false returns?	There is no statute of limitations.
What is the statute of limitations for refunds for individuals (aka an amended return)?	The later of: - three years from the date the return was filed - three years from the due date of the return - two years from the time the tax was paid
What is the statute of limitations on bad debts or worthless securities?	7 years Bad debts = bad luck = 7 years bad luck!
When is a taxpayer required to make an estimated quarterly tax payment?	If BOTH of the following conditions are met: (1) if the tax liability is expected to be $1,000 or more (2) if the taxpayer's withholding is the lesser of 90% of CY tax or 100% of PY tax
On which form does a taxpayer submit a claim for a refund of erroneously paid income taxes?	Form 1040X
What are the two appropriate methods to calculate the amount of estimated payments due?	Annualized method - 90% of CY tax Prior year method - 100% of PY tax NOTE: 110% of PY tax is required if AGI is in excess of $150K

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	Created by Jessica Penman over 7 years ago