A taxpayer filed their Year 1 tax return on March 15, Year 2. The return omitted $6,000 of gross income. The total gross income reported on the return was $20,000. Assuming no fraud was involved, what is the latest date the IRS can assess additional tax?

The return was filed early (March 15), so the statute of limitations clock starts on the due date (April 15, Year 2). The omitted income ($6,000) is 30% of the reported gross income ($20,000). Since the omission exceeds 25% of gross income stated on the return, the 6-year statute of limitations applies (IRC §6501(e)). April 15, Year 2 + 6 years = April 15, Year 8.