Gulf War Syndrome In Tax Court
Practical tip here. If you have income that is arguably taxable that you think is exempt, it is better if you file and claim the income as exempt. Two advantages. First, it cuts the penalty exposure. Second, and don’t tell anybody I was the one who told you, you are more likely to get away with it. If you pay homage to the IRS document matching computer gods, an actual human has to look at your return to assess you. If you just don’t file there is no need for human intervention in order to assess you. (That’s my impression anyway)
Obamacare Travesty In Tax Court
The executive summary of that nightmare is that the McGuires indicated that they were not responsible for a shared responsibility payment because they had paid for health insurance. They didn’t report anything about the premium credit, because they did not get Form 1095-A.
The IRS, of course, did know about the credit and now having their income determined that they did not qualify for the $7,092 credit and increased their tax liability by that amount. As is routine the IRS threw in an accuracy penalty.
Follow Me
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.