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. A lot of taxpayers buckle under pressure of fighting the IRS, even if they feel strongly that they are 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 person who prepared her return advised her to include this deduction, telling her the deduction fell within the guidelines of claiming it.
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 itself was complicated enough that it likely would have prompted most people to surrender. 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 were impressive to the judge and helped to outline the details. Even though only about 10 percent of cases waged against the IRS are won by the individuals who choose to fight their assessments, the judge ruled in Singleton-Clarke’s favor. She was absolutely in shock upon receiving the decision. This ruling may even go on to help other students deduct these types of costs in the future. This is one can of worms that the IRS may regret having opened up.
Can You Pay what You Owe?
Unfortunately not everyone is fortunate enough to have large deductions that they can claim on their tax return. Tax season is just about here, and tough times mean that budgets can get 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.