by Leif Jensen | Apr 9, 2025 | Tax Court |
Harsh punishment for a “ghost” preparer who filed false returns for clients. A woman charged her clients fees for tax prep services, but she didn’t sign the 1040s as a preparer, and she didn’t include her preparer tax ID number. Also, the returns overstated credits...
by Leif Jensen | Dec 11, 2024 | Tax Court |
The defrauded shareholder, who owned 40% of the S corporation he co-founded, was required to report his share of the company’s income on his personal tax return, even though the other owners had stolen funds and made unauthorized, disproportionate distributions...
by Leif Jensen | Feb 19, 2024 | Tax Court |
I thought this case was amusing. A cat rescue group doesn’t qualify as a tax-exempt agricultural organization, per the IRS in a private ruling. The group was formed to house and rescue cats that come from an animal shelter. It also runs a cat café, in which it charges...
by Leif Jensen | Feb 14, 2024 | Tax Court |
Recovering attorney fees after beating the IRS in court isn’t the easiest of tasks. Taxpayers can recover their legal costs if they substantially prevail on the issues, unless the government shows that its litigation position was substantially justified. They also...
by Leif Jensen | Nov 6, 2023 | Tax Court |
A tax-saving rent scheme backfires on the three owners of an S corporation. Each man owned one-third of a firm that operated fitness center franchises. The S corp didn’t have a central office, but instead paid rent to each shareholder for use of their personal...
by Leif Jensen | Nov 1, 2023 | Tax Court |
A canceled debt of a single-member LLC is taxable COD income to its owner. A man wholly ,owned an LLC that was disregarded for federal tax purposes. The LLC borrowed money from a bank but didn’t repay it. Eight years later, the bank sent Form 1099-C to the LLC,...
