Nevada taxpayers claimed that they had “extensive” knowledge of VIDEO POKER, and employed a strategy based on statistical information, and based on this, considered themselves to be professional gamblers. Husband owned an appliance repair business, wife was an accountant. Wife failed to report the gambling winnings from W2-G on their tax returns. Wife mistakenly thought… Continue reading What Other Factors Go Into Establishing Whether or Not Someone is a Professional Gambler? Mercier V US Tax Court June 6, 2023
Category: Court Cases
Tax Court disallows business expenses, sloppy bookkeeping
HEATHER P. DUNN AND EDISON DUNN, v. COMMISSIONER OF INTERNAL REVENUE, 11/9/2022 The IRS may assess penalties for business deductions where assets are not titled properly. This can happen if the taxpayer fails to properly document the ownership of an asset or if the asset is not used primarily for business purposes. The penalties for… Continue reading Tax Court disallows business expenses, sloppy bookkeeping
US Tax Court Sides with IRS because of incorrect paperwork
US Tax Court Sides with IRS because of incorrect paperwork, US Tax Court Sides with IRS because of incorrect paperwork, John M. Vassiliades & Eliza Ortizluis Vassiliades claimed the American opportunity Credit on their 2018 tax return and the case even shows that they qualified for the credit BUT – they supplied the wrong information… Continue reading US Tax Court Sides with IRS because of incorrect paperwork
Messy Bookkeeping Can Cost You Big Tax Deductions For Legitimate Deductions
A Farm in Illinois recently found out what happens when the books get a little out of hand. Vorreyer v. Comm’r / Thoma v. Comm’r / Dowson v. Comm’r, T.C. Memo 2022-97| September 21, 2022 | Greaves, Judge | Dkt. Nos. (Consolidated) 27314-16, 27846-16, 2634-19, 2636-19, 2666-19, 2670-19 Lots of small businesses have multiple entities,… Continue reading Messy Bookkeeping Can Cost You Big Tax Deductions For Legitimate Deductions
Bittner v. U.S.
To what extent does the IRS have to impose penalties for non-tax reporting? The question being posed to the US Supreme Court in Bittner V. U.S. is do they have the right to impose severel penalties to a taxpayer due to an oversight? These are the questions that are being posed to the Supreme Court.… Continue reading Bittner v. U.S.