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

during an examination of the tax return, the IRS asked for documentation that education expenses were paid.

Even if they don’t find anything wrong on their first pass through your paperwork (which is rare), there’s still plenty of time left for them to come back around and make things difficult once again!

If you don’t have the proper support for education expenses with documentation, you’re asking for trouble.

You may think this doesn’t apply to you, but if it’s been more than three years since you paid for an education expense and tried to claim it on a tax return, the IRS will be more than happy to tell you otherwise.

If your school is inside the U.S., they must give students a Form 1098-T (Tuition Statement) by January 31st of each year that shows how much was paid and what it was used for—and that statement should show whether this was required as part of a degree program or not. The information from this form can then be included on their tax return and help them avoid an audit because their expenses were legitimate

Conclusion

Don’t let your messy bookkeeping cost you thousands in taxes. Taking the time to organize and maintain receipts, bills, and other paperwork can make a big difference in the outcome of an IRS audit. If you need help getting organized, reach out to our team today!