Posts Tagged ‘improper deductions’

Tax Help Tip: Frivolous Tax Deduction Claims Can Lead to Big IRS Problems

Friday, August 5th, 2011

Feel like you deserve to deduct something and push the limits of what is legal? The IRS isn’t putting up with frivolous deduction claims, and in fact, will slap you with a fine.  U.S. legal code 6702 states that “A person shall pay a penalty of $5,000 if such person files what purports to be a return of a tax …and is based on a position which the Secretary has
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Discharged Credit Card Debt Found Not Excludable from Taxable Income in Recent Tax Case

Tuesday, May 19th, 2009

In this weak economy, taxpayers have lots of questions about cancellation of debt and taxability.
According to the tax code, if a debt for which you are personally liable is canceled or forgiven, other than as a gift or bequest, you may have to include the canceled amount in gross income. While it’s important to know if your canceled debt qualifies for exclusion from your income,  it is also necessary to
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Nicholas Cage Wins Appeal with the IRS – Special Treatment or Fair Settlement?

Thursday, September 11th, 2008

Nicolas Cage just won a deal with the Internal Revenue Service to pay $666,000 plus interest for improperly deducting $3.3 million in personal expenses from 2002 to 2004. Earlier this year, Cage contested a personal IRS bill for $814,000 in taxes, interest and penalties, while his Saturn Productions of Los Angeles company was stuck with a bill for $988,000.
While Cage’s settlement includes $99,000 for an accuracy related penalty, no penalties
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