Tax Court: The Audit Gone Wrong
The IRS audited our client’s 2004 through 2006 tax returns. Our client represented himself before the IRS. During the audit, the IRS summonsed our client’s bank accounts and erroneously determined thousands of dollars in deposits were taxable. The IRS attempted to assess an additional $49,561, $49,856 and $186,237 of federal tax liability against our client for the 2004, 2005, and 2006 tax years respectively, excluding interest and penalties. Our attorneys filed a petition with the United States Tax Court requesting a redetermination. Through many hours of detailed negotiations, we convinced the IRS that they erroneously classified most of the deposits in the relevant bank account as taxable income. We entered into a stipulated settlement with the IRS to settle this case for only $4,631, $8,901, and $1,963 for the 2004, 2005, and 2006 tax years respectively.
The results portrayed in the cases mentioned above were dependent on the facts of that particular case, and the results may differ if based on different facts. The case study and/or success stories shared herein are for informational purposes only. It is not intended to and does not constitute legal advice. For more information please call 1-888-TAX-DEAL or (415) 394-7200 or complete our contact form.