Successfully Taking on the IRS
Facing a Giant
If you have ever experienced an audit by the IRS or had your tax deductions denied you have probably experienced the powerless feeling of being up against an impossible opponent. You may have taken some initial steps to appeal the decision, but then fell short of a victory and decided to concede to the formidable adversary. If you win that battle, you’re among a lucky few. Most taxpayers fold under the pressure of fighting the IRS, even when they feel strongly that they are in the right.
A Bold Move
According to a recent Wall Street Journal article, a nurse from Maryland has won just such a case against the IRS. In 2006 Lori Singleton-Clarke filed her tax return for the previous year and included among her deductions $ 14,747 in tuition expenses for the M.B.A. that she had been pursuing through the online University of Phoenix. The professional who prepared her return advised her to include this deduction, stating that her situation fell within the stringent rules for claiming this type of deduction.
The Uphill Battle
It probably comes as no surprise to most people that the large deduction was initially rejected by the IRS Feeling that she was justified in claiming the deduction, Singleton-Clarke decided to pursue the matter further. She carefully investigated the intricate regulations for claiming such a deduction and became more convinced that her original filing of this expense was accurate. She pressed on in her quest.
Sheer Determination
What started out as an exchange of paperwork between Singleton-Clarke and the IRS quickly escalated into a very hard fought battle. There were seemingly unending documents requested by people involved in the audit. The process is complicated enough, and it would cause many people to fold just to avoid the hassle. After all of this, Singleton-Clarke was denied again so she made the decision to go to Tax Court. Without the funds to pay an attorney though, she chose to represent herself.
One of the Few
In court Singleton-Clarke relied on her impeccable organization and record keeping to present her side of the case. These habits were impressive to the judge and helped to outline the details. Only 10 percent of cases against the IRS actually succeed, but the judge ruled in the favor of Singleton Clarke. She was in shock when she received the decision. This ruling may even go on to help other students deduct these types of costs in the future. This is a hornet’s nest that the IRS may regret having stirred.
Can You Pay what You Owe?
Unfortunately not everyone is fortunate enough to have large deductions that they can claim on their tax return. With tax season coming up and the tough economy persisting, expenses can become even tighter. If you’re short on cash after taxes, you might consider a personal loan, if you so desire. It can provide you with the quick cash you need to get through the rough patch and when you apply at a reputable online site the process can be even faster and far less frustrating.
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