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 won the battle you are among the lucky few. Most taxpayers fold under the pressure of fighting the IRS, even when they feel strongly that they are in the 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 Singleton-Clarke filed her tax return for the previous year and included among her deductions $ 14,747 in tuition expenses for the M.B.A. that she had been pursuing through the online University of Phoenix. The person who prepared her return advised her to include this deduction, telling her the deduction fell within the guidelines of claiming it.
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 numerous individuals 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. She decided to represent herself, as she could not afford an attorney.
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. Only 10 percent of cases against the IRS actually succeed, but the judge ruled in the favor of Singleton Clarke. She was in shock when she received the decision. This ruling may even go on to help other students deduct these types of costs in the future. This is a hornet’s nest that the IRS may regret having stirred.
Can You Cover what You Owe?
Not everyone is lucky enough to have large deductions they can claim. Tax season is just about here, and tough times mean that budgets can get even tighter. If you’re short on cash after taxes, you might consider a personal loan, if you so desire. It can get you the quick cash you need to weather rough stretches, and applying at a reputable online site can make the process faster and less frustrating.