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Generally, business taxpayers can deduct a net operating loss (NOL) from income when filing a tax return, but they bear the burden of showing an NOL is valid. Tax law defines an NOL as the excess of deductions over gross income. One couple was denied an NOL deduction on their joint return. Reasons for the denial included that the NOL was based partly on business expenses that the taxpayers weren’t personally liable for and pension liabilities that the couple hadn’t paid. The husband’s law degree caused the court to find that he should have known the regulations. The couple was assessed tax and an accuracy-related penalty due to negligence or disregard of the rules. (TC Memo 2024-64) If you are having a similar issue, consider utilizing marketplaces like IfindTaxPro. You can post your project and find the right specialist for you: https://bit.ly/3Rpge4h #TaxLaw #NOL #BusinessDeductions #NetOperatingLoss #TaxCourt

Generally, business taxpayers can deduct a net operating loss (NOL) from income when filing a tax return, but they bear the burden of showing an NOL is valid. Tax law defines an NOL as the excess of deductions over gross income. One couple was denied an NOL deduction on their joint return. Reasons for the denial included that the NOL was based partly on business expenses that the taxpayers weren’t personally liable for and pension liabilities that the couple hadn’t paid. The husband’s law degree caused the court to find that he should have known the regulations. The couple was assessed tax and an accuracy-related penalty due to negligence or disregard of the rules. (TC Memo 2024-64). Contact us for help: https://bit.ly/3jcyo8o #tax #taxes #taxpayer #business #businesstaxpayer #taxreturn #netoperatingloss #NOL #incometax #taxdeduction #taxlaw #cg #cgtaxauditadvisory

Generally, business taxpayers can deduct a net operating loss (NOL) from income when filing a tax return, but they bear the burden of showing an NOL is valid. Tax law defines an NOL as the excess of deductions over gross income. One couple was denied an NOL deduction on their joint return. Reasons for the denial included that the NOL was based partly on business expenses that the taxpayers weren’t personally liable for and pension liabilities that the couple hadn’t paid. The husband’s law degree caused the court to find that he should have known the regulations. The couple was assessed tax and an accuracy-related penalty due to negligence or disregard of the rules. (TC Memo 2024-64)

Generally, business taxpayers can deduct a net operating loss (NOL) from income when filing a tax return, but they bear the burden of showing an NOL is valid. Tax law defines an NOL as the excess of deductions over gross income. One couple was denied an NOL deduction on their joint return. Reasons for the denial included that the NOL was based partly on business expenses that the taxpayers weren’t personally liable for and pension liabilities that the couple hadn’t paid. The husband’s law degree caused the court to find that he should have known the regulations. The couple was assessed tax and an accuracy-related penalty due to negligence or disregard of the rules. (TC Memo 2024-64)

Generally, business taxpayers can deduct a net operating loss (NOL) from income when filing a tax return, but they bear the burden of showing an NOL is valid. Tax law defines an NOL as the excess of deductions over gross income. One couple was denied an NOL deduction on their joint return. Reasons for the denial included that the NOL was based partly on business expenses that the taxpayers weren’t personally liable for and pension liabilities that the couple hadn’t paid. The husband’s law degree caused the court to find that he should have known the regulations. The couple was assessed tax and an accuracy-related penalty due to negligence or disregard of the rules. (TC Memo 2024-64)

Generally, business taxpayers can deduct a net operating loss (NOL) from income when filing a tax return, but they bear the burden of showing an NOL is valid. Tax law defines an NOL as the excess of deductions over gross income. One couple was denied an NOL deduction on their joint return. Reasons for the denial included that the NOL was based partly on business expenses that the taxpayers weren’t personally liable for and pension liabilities that the couple hadn’t paid. The husband’s law degree caused the court to find that he should have known the regulations. The couple was assessed tax and an accuracy-related penalty due to negligence or disregard of the rules. (TC Memo 2024-64)

Generally, business taxpayers can deduct a net operating loss (NOL) from income when filing a tax return, but they bear the burden of showing an NOL is valid. Tax law defines an NOL as the excess of deductions over gross income. One couple was denied an NOL deduction on their joint return. Reasons for the denial included that the NOL was based partly on business expenses that the taxpayers weren’t personally liable for and pension liabilities that the couple hadn’t paid. The husband’s law degree caused the court to find that he should have known the regulations. The couple was assessed tax and an accuracy-related penalty due to negligence or disregard of the rules. (TC Memo 2024-64)

Generally, business taxpayers can deduct a net operating loss (NOL) from income when filing a tax return, but they bear the burden of showing an NOL is valid. Tax law defines an NOL as the excess of deductions over gross income. One couple was denied an NOL deduction on their joint return. Reasons for the denial included that the NOL was based partly on business expenses that the taxpayers weren’t personally liable for and pension liabilities that the couple hadn’t paid. The husband’s law degree caused the court to find that he should have known the regulations. The couple was assessed tax and an accuracy-related penalty due to negligence or disregard of the rules. (TC Memo 2024-64)

Business owners can generally deduct ordinary and necessary business expenses if they have proof. But one married couple that owned six LLCs claimed they had too much proof to present in court. After they failed to file tax returns for several years, the IRS created substitute returns. In U.S. Tax Court, the taxpayers relied mostly on entries in their business journals. Additional proof was unavailable, they stated, because it was too voluminous to produce or was tied up in other litigation. The court refused to accept the taxpayers’ records because actual evidence of deductions wasn’t presented. The court didn’t accept their claims and imposed additional tax and penalties. (TC Memo 2024-95) #BusinessOwners #TaxDeductions #TaxCourt #IRS #TaxPenalties #BusinessExpenses