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QUESTION 1

Mary Jones files her 2014 federal income tax return at an IRS office on February 4, 2016. Her return was on extension until 10/15/15. When does the Statute of Limitations (SOL) expire?

	A.	February 4, 2018
	B.	April 15, 2018
	C.	October 15, 2018
	D.	February 4, 2019

QUESTION 2

Your client's 2014 federal income tax return was filed on 4/15/15. Recently your client received an audit adjustment attributable to the basis of an investment asset, the adjustment of which represents an adjustment of 35% of the gross income reported on the return. At no time has the service secured a statute extension from the client. Here it is July 3, 2018 and your client presents you with the 30 day letter on the proposed adjustment. What do you advise?

	A.	The statute of limitations remains open for six years under IRC 6501(e).
	B.	The statute of limitations has expired under IRC 6501(a)
	C.	The statute of limitations remains open under IRC 6501(c)
	D.	The statute of limitations is open under IRC 6501(c)(4) because your client didn't raise the statute of limitations defense earlier.

QUESTION 3

Under IRC 6501(c)(4) a taxpayer may agree to extend the statute of limitations for assessment. Identify the statement that is true.

	A.	To terminate the 872-A statute of limitations (SOL), a taxpayer may submit a form 872-T to the IRS.
	B.	The 872 and 872-A may not be restricted to specific items or issues.
	C.	An 872 will never be secured if the statute of limitations in open under IRC 6501(e)(1)
	D.	An estate tax return (chapter 11) statute of limitation may be extended by agreement.

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