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 might have taken some steps to appeal the decision, but fall short of a victory and decided to concede to them. 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 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 itself was complicated enough that it likely would have prompted most people to surrender. After all of this, Singleton-Clarke was denied again so she made the decision 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. 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 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 Pay 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’re short on cash after taxes, you might consider a personal loan, if you so desire. It can provide you with the quick cash you need to get through the rough patch and when you apply at a reputable online site the process can be even faster and far less frustrating.
