Tax Court Holds Pharmacist Liable for Taxes, and Penalties including the 75% Civil Fraud Penalty
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. This is the latest Civil Fraud Tax Court Memorandum decision to be issued.
The United States Tax Court held that a pharmacist who was involved in the illegal distribution of hydrocodone had unreported income based on a bank deposits analysis and wasn’t entitled to business expense deductions or dependency exemptions; he was also liable for civil fraud penalties based upon clear and convincing evidence and additions to tax for failure to timely file returns and pay taxes.