Importance of Tax Lawyer in a Tax Case
Internal Revenue Service (IRS) is a service organization that provides services to the tax payers. This agency is owned by government. It is responsible for tax collection and Tax law enforcement in the state. It strictly follows all rules and always shows justice to the tax payers that’s why IRS also has suffered in history.
First loss that IRS suffers was taken about in 1925. It was the first case that was won by taxpayer. The reason was that taxpayer wants to treat horse breeding expenses as deductible expenses and IRS didn’t wants to allow these expenses. Court took 2 years to decide the case in favor of taxpayer. After this case many other people also started litigation with IRS in court. Most were won by taxpayers. IRS suffers great loss in these cases. But now IRS and courts ordered not to breed horses. Consequently, three cases were decided in last month against the taxpayers and one of them also surcharged with penalty. Deductible expenses are those that are allowed as expenses by tax authorities.
IRS also tackles a super bowl champion in a horse breeding case. Romo was the super bowl champion who took assistance from financial advisor and she suggest him big reliable tax firm. Tax lawyer advised him to invest $13 million in horse breeding whereas tax lawyer also has some interest in the investee company. Financial advisor also warned Romo for this investment but he did not take it into account. Tax Court was of the opinion that financial advisor warned the Romo for this investment and many clauses of the agreement were not followed by the investee company. So it was all fault of Romo because he knew the entire situation and even then he invested $13 million. These all reasons caused him loss for about $5 millions.
Romo has made many blunders in this situation. He should have hired a tax lawyer that is a Certified Public Accountant (CPA) because CPA has knowledge of all tax laws and new alterations. He should have no relations or interest with the investee or previous tax lawyer. Tax payer should always consult tax lawyer.
- London Grocer Found Guilty in £120k VAT Fraud
- HMRC Enquiring English Premier League Clubs and Players Over Potential Tax Avoidance on Sale of Players’ Image Rights
- VAT Fraud Leads Father and Son Duo to Jail
- Mechanic Ordered to Pay Back £208k with Respect to a Tax Fraud
- Large Businesses Tax underpayments increases by 13% to £25bn
- OECD Releases Compliance Ratings on Tax Transparency
- LITRG urges to Act Fast on Missed Tax Credit Renewals