Federal Tax Post – 03/13/2018

When taxpayers don’t keep sufficient records to prove their taxable income, the IRS can reconstruct income from available data and calculate the tax owed. Absent contrary evidence, the IRS calculation is presumed correct. One business owner failed to keep records or file tax returns for 3 years, yet he disputed the tax bill determined by the IRS. He claimed his disabilities caused him to rely on his then-wife, who mishandled company finances. The Tax Court agreed with the IRS, stating the taxpayer had failed to present contradictory evidence. (TC Memo 2018-23)

By | 2018-04-05T11:13:47+00:00 April 5th, 2018|Federal Tax Posts|Comments Off on Federal Tax Post – 03/13/2018