Description

This course discusses recent judicial and administrative tax decisions impacting individuals and pass-through entities. A brief review of the judicial and administrative tax system includes a discussion of which court a taxpayer should use when an administrative remedy cannot be reached after an IRS audit.

A review of salient court cases includes the following topics:

• What is included/excluded in gross income?
• What deductions are allowed from gross income based upon whether an activity is “engaged in for profit” or a “passive activity,” and whether the expense is a “pre-opening” or “start-up” expense, an “ordinary and necessary business expense,” is “adequately substantiated,” and is not a personal expense.
• Deductions from gross income, including limits on charitable contribution deductions.
• Trust fund tax penalties, including determining who is a “responsible person” for paying federal employment taxes.
• Tax Administration issues including relief from joint and several liability, and “innocent spouse” relief on a married filing jointly tax return.
• Tax penalties for: failure to file/pay, filing a frivolous tax return, fraud, negligence, gross valuation misstatement, and the Foreign Bank and Financial Account (FBAR) reporting penalty.

This course also discusses how to avoid/minimize common mistakes made when filing a tax return.