In a U.S. District Court case, the court ruled that willful intent to prepare and submit false tax returns was a bar to innocent tax relief. In the case, at issue was the admissibility of evidence concerning an individual’s tax return containing false and fraudulent information.
The Court properly ruled that it was admissible. Allowing this adverse evidence into the trial destroyed the defendant’s case. The defendant’s spouse was not liable for thousands of dollars in taxes, for which she would otherwise have been liable.
Points of Interest
- The decisions you make in these final months of 2010 can have a major impact on your taxes next April.
- As part of the Small Business Act of 2010, businesses can now expense up to $500,000 of equipment purchase.
- If you are considering beginning estate planning, keep in mind that you have until December 31 to take advantage of 2010’s gift exemption of $13,000.
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors