Beating 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 won the battle you are among the 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 Singelton-Clarke filed a tax return for the previous year and deducted, among other things, $ 14,747 in tuition for the M.B.A. that she had been earning online through the 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 researched the regulations for claiming that kind of deduction, and grew more and mroe convinced her original filing was justified. 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 that, Singelton-Clarke was denied again, so she decided 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 turned out to be very impressive to the judge and helped to clearly outline the necessary details. Only 10 percent of cases against the IRS actually succeed, but the judge ruled in the favor of Singleton Clarke. She was absolutely in shock upon receiving the decision. This ruling might help other students deduct this kind of cost in the future. This is a hornet's nest that the IRS may regret having stirred.
Can You Cover 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 find yourself short on cash after taxes you may want to consider a personal loan. It can get you the quick cash you need to weather rough stretches, and applying at a reputable online site can make the process faster and less frustrating.
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