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Most Recent Posts

Tax Court Allows Multimillion Multiyear Arabian Horse Losses

Tax Court Allows Multimillion Multiyear Arabian Horse Losses

If you told that story to some CPAs who had been in the business a long time, you would get two different reactions.  One would be a kind of “There but for the grace of God, go I” and another would be “Well that would never happen with a transaction that my firm was involved with.  We have procedures and policies to avoid that type of thing”.  The latter group is divided into two classes – people who are deluding themselves and liars. The humility of the “grace of God” crowd actually makes it less likely that they’ll screw up that way because they will have a couple of paranoid partners who worry about stuff like that happening.

At any rate, the Metzes “reliance on professional” defense did not work, since they should have noticed that a gain of $2 million or so had slipped through the cracks and they were hit with the accuracy penalty.  Have to wonder whether that will end up coming out of somebody’s malpractice coverage

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IRS Agent Causes Grief For Taxpayer’s Spouse By Being Helpful

IRS Agent Causes Grief For Taxpayer’s Spouse By Being Helpful

Generally, pursuant to section 6011(a) a taxpayer obligated to file a Federal tax return must conform to the forms and regulations prescribed by respondent. Even though signed by petitioner and Mr. Rodriguez, the consent is hardly a form described in section 6011 or section 1.6011-1, Income Tax Regs. Furthermore, a Form 4549 is not signed by the taxpayer under penalties of perjury, one of the critical requirements for a document to be treated as a Federal income tax return.  Petitioner’s argument that the consent should be treated as a joint return is rejected.

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