Final answer:
The IRS has a 6-year Statute of Limitations on assessment for taxpayers who understate their gross income by 25 percent.
Step-by-step explanation:
The question is about the Statute of Limitations on assessment by the IRS.
If a taxpayer understates gross income by 25 percent, the IRS has a 6-year Statute of Limitations on assessment. This means that the IRS has six years from the date the tax return was filed to assess any additional tax owed.
For example, if a taxpayer filed their tax return on April 15, 2022, the IRS would have until April 15, 2028, to assess any additional tax owed.