Thursday, May 1, 2014

Revenge is a Dish Best Served with Hard Cold Cash

A recent Tax Court Summary Opinion (2014-28) tells a tale of greed, betrayal, and revenge.
It's not that interesting, but we hardly ever run into revenge stories in tax court opinions: greed is a common theme we see all the time in the tax business.

Mr and Mrs Kososki were in the process of terminating their marriage. Shortly before separating they filed a joint return claiming a refund ($7,768). The wife expected to get a portion of the tax refund, but the husband kept it all. The refund was directly deposited into the husband's bank account.

The wife filed another return for the same year (2010), filing not as married-joint but as married-separate.
The IRS audited the husband and changed his filing status to married filing separately.
The result was a refund to the wife with the husband owing taxes and penalties in excess of $5,000.


- Mark Gleason
  www.lakes-cpa.com

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