The burden of proof is also on the taxpayer regarding unreported income. Example: "The IRS assumes waiters and waitresses receive at least 8 percent of sales in tips, unless the worker can prove otherwise."Of course. But in this case the taxpayer is NOT attempting to make a deduction. The taxpayer is designating a payment as personal, not related to business expenditures. This transaction falls completely outside of the tax return as there is no reporting of it on a tax return. Other than, of course, if it was greater than the annual gift tax exclusion amount.
"In disputes with the IRS, the burden of proof generally falls on the taxpayer to substantiate deductions, credits, and other claims on their tax return."
~Chat GPT
Statistics: Posted by popoki — Mon Jan 06, 2025 4:23 pm — Replies 36 — Views 1997