A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.
The Tax Court, sustaining additions to tax and accuracy-related penalties, held that a couple may deduct some wage and contract services expenses and mortgage interest expenses related to the husband’s law practice but that due to lack of substantiation wasn’t entitled to deductions for other expenses or net operating losses.
CHARLES P. KARCH AND PATRICIA L. KARCH,
COMMISSIONER OF INTERNAL REVENUE,
UNITED STATES TAX COURT
T.C. Memo. 2013-237