Statute of Limitations. In April 2019, Dan is audited by the
IRS for the year 2017. During the course of the audit, the agent discovers that
Dan’s deductions for business travel and entertainment are unsubstantiated and
a $600 deficiency assessment is proposed for the tax year 2017. The agent also
examined some prior year returns. The agent discovers chat Dan failed to report
$40,000 of gross business income on his 2015 return. Gross income of $60,000
was reported in 2015. The agent also discovers chat Dan failed to file a tax
return in 2010.
Will the statute of limitations prevent the IRS from issuing
a deficiency assessment for 2017, 2015, or 2010? Explain.
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