United States Tax Court Decision for the Week – You be the Judge

Income Tax Return Preparer Liable for Deficiencies, Fraud Penalties

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 United States Tax Court held that an income tax return preparer underreported her income, overstated her tax withholdings, and is liable for the 75% civil fraud penalties, finding that her failure to respond to the affirmative allegations in the IRS’s answer to her petition resulted in deemed admissions that supported her liability for the deficiencies and fraud penalties.

YVONNE K. YOUNG,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-18

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