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August 28, 2008
Tax Court Treats IRS Auditor's Greyhound Business as a Hobby
The Tax Court yesterday denied an IRS auditor's claimed $75k loss (over three years) in breeding greyhounds for racing because the actiivity was not engaged in for profit within the meaning of § 183. Whitecavage v. Commissioner, T.C. Memo. 2008-203 (Aug. 27, 2008). The court also sustained an accuracy-related penalty because "Petitioner has not shown (or even expressly claimed) that he had reasonable cause or acted in good faith with respect to his understatements of income tax. Any such defense appears especially problematic in the light of petitioner’s employment as an IRS auditor."
August 28, 2008 in IRS News, New Cases | Permalink
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» HOBBY LOSSES DOG IRS AUDITOR from Roth & Company, P.C.
We were chatting about hobby losses recently. Yesterday we get a new case where a taxpayer got in trouble under... [Read More]
Tracked on Aug 28, 2008 9:19:35 AM
