A failure to properly document transactions between parties can result in a surprising tax bill. The Tax Court recently heard on a case involving this type of issue. The case involves an attempt to write off business expenses without proper documentation.
Failure to properly document business loan leads to tax bill
The tax litigation process
When taxpayers receive notification from the IRS about a tax problem, their main goal is to resolve the issue and make the problem go away. In some cases, when the tax debts are significant or the taxpayer denies the alleged wrong-doing, litigation is the only course of action.
