Tuesday, November 25, 2008
Posted by Victor Fleischer
Private equity professionals will no doubt be thrilled to hear that I was recently audited. At issue: a few thousand dollars in traveling expenses "while away from home in pursuit of a trade or business" (section 162) when I visited Georgetown for a semester in the Fall of 2005. So while the private equity titans spent last summer successfully defending their million dollar tax breaks, I was busy holding on to my meager deduction (a deduction already made smaller by the AMT!). After some frustrating interactions with a local office, I filed a petition with the tax court, and a settlement followed promptly and without fuss.
Nothing would make me happier than retiring as a tax litigator with a perfect 1-0 record.