TAX 9863 Chapter Notes - Chapter 1,2,3,5: Mayo Clinic, Regressive Tax, Tax Incentive
Document Summary
Small client, small tax court, less than 50,000 and haven"t paid yet. Irs claims tax deficiency on client large but doesn"t like litigation costs. Bad personality at court: tax court, more technical cases no jury, most regressive tax, per capita tax (fixed amount, forged paintings 400,000. Friend is with him and fights for that$: 2017: lawsuit over w/ prejudice, 2018: neighbor fights for it. Included in 2017 return: used violin 2016 find out it is a stradavarious. Feb 2016 someone argues for it on 2017. Income recognized when: none of the above no realization, same as #8, nov 16, sells violin and accepts cash. When is income included: 2016 year of selling, tp is restructuring business form, substance, less than 50/50 slim change of winning but not impossible, client is a major corp. Highly complicated tax may or not be tax free.
