In Nolder v. Commissioner, T.C. Summary Opinion 2012-50, the U.S. Tax Court examined a number of different expenses incurred by a truck driver to determine which expenses were deductible. This case provides a good overview of the typical expenses truck drivers incur that are and are not deductible. Facts & Procedural History Mr. Nolder was…
Category: IRS Audits
IRS Audits
An IRS examination of a taxpayer’s return or financial records to verify their accuracy and compliance with tax laws. Give us a call to see how we can help, (713) 909-4906.
Truck Driver Not Entitled to Deduct Meal and Supply Expenses
Truck drivers are an essential part of our economy, transporting goods across the country to keep businesses running smoothly. Trucking expenses can add up quickly. This puts truck driver tax deductions high on the list of concerns for most truckers. Truck driver tax deductions are expenses that can be deducted from taxable income, reducing the…
Truck Driver Not Entitled to Deductions When Records Destroyed
The IRS has a long history of going after truck drivers. There are a number of reasons for this, but, largely it is because of the nature of the expenses that truckers incur. Most truck drivers are small business owners, as they own and operate their own rigs. These small businesses travel, so their expenses…
Substantial Compliance: Finding Acceptance With the IRS
A professor can increase overall class scores for extra credit. A police officer is authorized to issue warnings for minor traffic infractions. A judge can allow a defendant to plead guilty to a lesser charge when justice warrants it. These situations involve individuals who have a certain level of authority or power in a particular…
Can Taxpayers Withhold Payment Pending Government Response?
As citizens, we sometimes seek answers from the government, be it information about UFOs or more practical questions such as what provision grants the IRS the right to collect taxes. For years, tax protesters have been asking the latter, only to be met with evasive responses from the IRS. The case of We the People…
Car Dealerships and Cash Reporting Requirements
Cash-based businesses can pose a challenge for the IRS, as they may be susceptible to tax fraud. To address this issue, Section 6050I(a) requires businesses to report any cash payments exceeding $10,000. This provision enables the IRS to track substantial cash payments made to cash-based businesses, and Form 8300 is the designated form for reporting…
IRS Has the Burden of Proof for Items of Income
In tax disputes between taxpayers and the IRS, the burden of proof lies with the IRS to prove that a taxpayer earned more income than reported. The IRS has to have some evidence. These rules are set out in Section 7491, which shifts the burden of proof to the IRS, making it more difficult for…
5 Things to Prepare for an IRS Audit
The IRS audit rate is quite low. But lucky you, you have received an IRS audit notice. Fun stuff. So what do you do? Or what can you do to prepare? There are several things that you might start with. Before getting into those, let’s stop to think about how the IRS audit process. The…
What Are the Chances of Being Audited?
The fear of being audited by the Internal Revenue Service (“IRS”) looms large for many taxpayers. The IRS releases general statistics regarding audits, but how much do these numbers truly reveal about an individual’s chances of being audited? This article will delve into the most recent IRS statistics, explore their implications, and provide an informed…
IRS Statistics for Audit and Enforcement Rates
While the IRS does not release many of the factors that it uses to identify taxpayers for tax audits, the IRS does release general statistics that can help gauge a taxpayer’s audit potential. These statistics help answer the question of “what are the chances of being audited?” IRS Audit Rates Looking at the most recent IRS…