Tax Coda (@taxcoda): "If you run a cash-heavy business and your reported receipts do not match the Forms 1099 trail, the IRS will reconstruct your income. If you claim depreciation, you must provide documentation. And if you cite cases that do not exist, expect the Court to notice."

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If you run a cash-heavy business and your reported receipts do not match the Forms 1099 trail, the IRS will reconstruct your income. If you claim depreciation, you must provide documentation. And if you cite cases that do not exist, expect the Court to notice.

Court upholds $2.2 million income adjustment in MedCafe case

The Tax Court sustained a large income adjustment based on Forms 1099 and a bank deposits analysis, rejected unsupported depreciation deductions, and criticized counsel for citing nonexistent cases.

Tax Coda

Feb 19

5:22 PM

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Court upholds $2.2 million income adjustment in MedCafe case

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