Madison and Robyn Sold a Piece of Property for $250,000

Multiple Choice

Madison and Robyn sold a piece of property for $250,000, claiming that their basis was $100,000, and reported a taxable gain of $150,000. Their 2019 return filed in February 2020 reported gross income of $250,000. Madison and Robyn later determine that the property's basis was actually $25,000, not $100,000, resulting in a $75,000 understatement of income on the 2019 return. The statute of limitations period in which the IRS may assess additional tax in this situation expires on April 15 of what year?

A) 2022
B) 2023
C) 2026
D) There is noexpiration date for the statute of limitations in this context.