by Leif Jensen | Nov 3, 2021 | Tax Court, Taxes |
We are all aware that the IRS uses ratio analysis to determine further scrutiny for their investigations. So taking higher-than-average deductions on Schedule A is an audit red flag if your write-offs are disproportionately large when compared with income reported on...
by Leif Jensen | Nov 2, 2021 | Tax Court |
It’s seems the government can garnish a criminal’s 401(k) to pay restitution, according to an appeals court. A man who pled guilty after embezzling money from his employer was sentenced to prison and forced to pay monetary restitution under the Mandatory Victims...
by Leif Jensen | Aug 16, 2021 | Tax Court |
The general rule of thumb, is that the IRS can only go back three years. But, there are times when IRS can go back more than three years to seek taxes. If over 25% of gross income is omitted from a return, then IRS has six years to assess the tax, unless the filer...
by Leif Jensen | Jan 20, 2021 | Tax Court |
In a recent court case, it was determined that a compulsive gambler can offset winnings with unsubstantiated losses. In 2014, he spent countless hours playing slot machines in four casinos. The casinos issued 160 Forms W-2G, reporting cumulative gross winnings of...
by Leif Jensen | Jul 8, 2020 | Tax Court |
Workers for an apartment cleaning business are independent contractors, and not employees, according to the Tax Court The woman who operated her own business contracted with apartment complexes to clean vacated units. She then hired workers with prior cleaning...
by Leif Jensen | Apr 8, 2020 | Tax Court, Taxes |
A retired Mary Kay consultant owes self-employment tax on deferred pay that she got after she retired. During her tenure with the company, she was treated as an independent contractor and was compensated with commissions. The payments that she received under the...
