The IRS is known for its thoroughness. Be cautious about what you share publicly because the IRS can and will use that information against you if they can.
Roger Ledbetter, a regular contributor to #Taxtwitter, recently shared a case involving taxpayers who attempted to shift income between different businesses to unlock losses they wouldn’t normally be entitled to. The most striking part of the case is how the IRS initiated it: by quoting the taxpayer from a published article 25 years earlier, where they admitted to poor accounting practices. This demonstrates the meticulous nature of the IRS.
At Verity CPAs, we often remind our clients that the IRS is increasing its scrutiny. For instance, billionaire Michael Taylor, who claimed to have moved from DC to Florida to save on taxes, was targeted by state taxing authorities. They built a case alleging his primary residence was still in DC, using his Facebook posts discussing his DC residence as evidence. This led to claims of back taxes amounting to $150 million.
Next time you consider sharing something on social media, remember it can impact your tax situation. Be prudent and consult with us to ensure your public statements don’t come back to haunt you.
Contact Verity CPAs at info@verity.cpa or 808.546.5026 for expert advice on managing your tax affairs.
Comments