Category Archives: Tax Court

What happens when you battle the IRS in Tax Court, but lose? You have to pay what you owe. If you don’t, you can face a lien or levy. Today, the Tax Court stepped in when a one-time loser became … Continue reading →

When an S corporation has a loss, the loss flows through to its’ shareholders. But shareholders can only take the loss if they have a basis in the corporation; the basis is (in general) the shareholder’s share of the profits … Continue reading →

Sometimes one must only look in the mirror to see who is the bozo. Yesterday, a taxpayer who didn’t file claimed that the IRS “…prepared only “dummy returns” for 2000 and 2001, and that respondent’s determination of his deficiencies in … Continue reading →

It’s not a good thing for you when the Tax Court begins its opinion with “…[the petitioner] seeks to deduct expenses by relying mostly — if not quite entirely — on doctored receipts and implausible testimony.” The opinion includes such … Continue reading →

The Tax Court was in a foul mood today, as they disposed of several frivolous taxpayer cases. In one case, they note, “We advised petitioner at the 2001 trial that his arguments were frivolous, and we admonished him against advancing … Continue reading →

…You’re stuck, and look fairly stupid. At least once a week, the Tax Court tells a tax protester that, “Yes, Virginia, there is an income tax, and you must pay it.” And your arguments that (a) it’s unconstitutional, (b) you … Continue reading →

I’m amazed that some of my clients don’t want to spend the $4.42 for certified mail (return receipt requested) when communicating with the IRS. Today the Tax Court released a case where a filing got misplaced in the mails; however, … Continue reading →

Almost everyone knows the text of the Fifth Amendment to the US Constitution: No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases … Continue reading →