In the case presented here, the Commissioner of Internal Revenue determined a deficiency of $4,018 in the Browns’ federal income tax for 2010. The issues up for debate were whether the Browns’ were entitled to medical expense or charitable contributions deductions beyond those allowed in the statutory notice or conceded by the Commissioner after trial. However, the Browns’ were not able to verify the reliability of the amount of cash contributions. Thus, the court was not persuaded that the claimed cash contributions were substantiated as required by law, and no further deductions may be allowed.

Check out the case here

Posted by Pooja Shivaprasad, Associate Editor, Wealth Strategies Journal