What to do when your college-aged child files a tax return and claims tuition credits you were entitled to on your own return.
DIY is not always better or cheaper, as I learned from my experiment with a shaved head.
The “It’s Turbo Tax’s Fault!” defense rarely works, but it did work for one lucky taxpayer in Tax Court last week.
A California man faces theft charges for allegedly spending a $110,000 tax refund that was posted to his account in error. The mixup happened when the woman who was actually owed the refund provided the IRS with an old bank account number for an account she had closed in 2004. The account number had since […]
If you’re ever audited by the IRS, don’t rely on your 5th Amendment privilage against self-incrimination to protect you. A self-employed architectural consultant tried using the 5th Amendment as a defense but got shot down in Tax Court last week. The consultant, a Mr. Raeber, was audited by the IRS for his Schedule C deductions […]
In a previous blog post, I talked about the tax consequences of being an unlicensed, in-home daycare provider. As mentioned in that post, the unlicensed provider may or may not be able to take the deduction for “business use of the home,” depending on state law. If state law requires a provider to be licensed or registered […]
The Dinesen Tax Times has been providing a series of articles about charitable contributions this month. A recent Tax Court case fits in nicely with that series of articles. The Tax Court case involved a couple (a Mr. and Mrs. Murphy) from California who had more than $27,000 of charitable contributions disallowed by the IRS […]
The U.S. Tax Court has again ruled against a taxpayer who used the “the tax preparation software said it was okay” defense. In the case of Phu and Yvonne Au, the couple had claimed a deduction for more than $40,000 of gambling losses. They claimed no gambling winnings. The Internal Revenue Code only allows gambling […]