Poor Records Not Equated to Fraud

This week we look at a Court of Claims case that deals with an IRS examination and the imposition of the fraud penalty--a penalty the Court of Claims found was not justified.  The case is the one of Gagliardi v. United States, 2008 TNT 98-20, and is instructive both in the outline of the law, as well as allowing us to consider the ways an examination like this could spin out of control and result in a taxpayer being assessed the fraud penalty in a case like this.The materials can be downloaded from http://www.edzollars.com/2008-06-02_FraudandtheDentist.pdf.The podcast is being uploaded a bit early this week since I'll be traveling Saturday to New Orleans for the AICPA's Spring Tax Division meeting held there Monday and Tuesday.  The podcast is sponsored by Leimberg Information Services, located on the web at http://www.leimbergservices.com.