$436,327.20 Tax Liability Reduced to $33,364 in U.S. Tax Court

After being audited by the IRS, the Taxpayer received a Notice of Deficiency proposing additional federal income tax (including penalties & interest) in the amount of $436,327.20. The basis for the Notice of Deficiency was disallowed Schedule C business expenses (including contract labor and supplies) on the Taxpayer’s 2021 and 2022 federal income tax returns. DeWitt Law represented the Taxpayer and challenged the Notice of Deficiency by filing a Petition in U.S. Tax Court. The Court entered a Decision reducing the tax to $33,364.