Taking on the IRS and Winning

Saturday, February 2nd, 2013 By

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 may have taken some initial steps to appeal the decision, but then fell short of a victory and decided to concede to the formidable adversary. 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 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 investigated the intricate regulations for claiming such a deduction and became more convinced that her original filing of this expense was accurate. 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. 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 may even go on to help other students deduct these types of costs in the future. This is one can of worms that the IRS may regret having opened up.

Can You Cover 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 find yourself short on cash after taxes you may want to consider a personal loan. 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.

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