Bank deposit analysis and deductibility of legal fees
Client present firm with an IRS audit reviewing gross income and disallowing the legal fees related to a civil case (accident) he had deducted as a business expense. We were able to convince the IRS that the almost $18,000 in legal fees qualified as a business expense despite the facts surrounding the expense falling into a grey area. Further, we were able to demonstrate that the client had no unreported income by providing a through bank deposit analysis.
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