The IRS statute of limitations for assessment is generally:

A 1 year

B 3 years from the later of the filing date or due date

C 10 years

D No limit

✓ Correct Answer: Option B

Generally 3 years. Extended to 6 years if gross income understatement >25%. No limit for fraud or failure to file.

💡 Why is B) the correct answer?

The correct answer to the question "The IRS statute of limitations for assessment is generally:" is Option B: 3 years from the later of the filing date or due date.

The other options — A) 1 year, C) 10 years, D) No limit — are incorrect for this CPA Exam Prep question. As explained above: Generally 3 years. Extended to 6 years if gross income understatement >25%. No limit for fraud or failure to file.

📚 About This CPA Exam Prep Practice Question

This 2-level CPA Exam Prep question from the Regulation (REG) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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The IRS statute of limitations for assessment is generally:

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

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