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Tax Payments Can Be Delayed For A Very Long Time

Tax Payments Can Be Delayed For A Very Long Time

A couple of thoughts on this.  One is that you really don’t want to try this with a tax liability that you could pay without breaking yourself because you will get it to grow to that level.  On the other hand, the IRS does agree that Mr. Hauptman will not be able to pay the whole tab.  Once that threshold is clearly crossed, the amount of the tax liability and accumulated interest and penalties is no longer important.  (See Reilly’s Tenth Law of Tax Planning).  So what’s the hurry?

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Accounting Manager Fights IRS For Deduction For MBA Courses

Accounting Manager Fights IRS For Deduction For MBA Courses

We believe that the facts support petitioners’ argument. When petitioner enrolled in the EMBA degree program, he was a well-established finance and accounting business manager at Marriott LAX. He managed the hotel’s financial operations and auditing departments, he was responsible for large groups of employees from various backgrounds and specializations, and he made sure the hotel’s business practices were in compliance with GAAP. When his employment was abruptly terminated, he continued to take courses at BYU that improved his managerial and leadership skills–skills that were appropriate and helpful to his position as a business manager. The courses petitioner chose to fulfill his degree requirements did not qualify him for a new trade or business because he was not qualified to perform new tasks or activities with the conferral of his degree. Instead, petitioner chose courses in a line of study that he was familiar with–management and finance. Even though petitioner took a few courses that were outside this scope, we do not believe that these courses by themselves could have prepared him to enter a new trade or business.

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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.