Syed Navaid v. Commissioner of Internal Revenue

In this case, the Commissioner determined a deficiency in Federal income tax of over $30,000 and an accuracy-related penalty under section 6662(a) of over $7,000 for the Navaid’s 2010 taxable year. Navaid was sentenced to prison for siphoning medications from the Department of Veteran’s affairs into his own private pharmacy, and during his time, a number of actions were taken in his IRA account. Thus, Navaid did not report his the turnover of his account in his tax return, and as a result, did not act with reasonable cause and in good faith. Therefore, the Court decided to impose an accuracy-related penalty for an underpayment in 2010.

Find the case here

Posted by Pooja Shivaprasad, Associate Editor, Wealth Strategies Journal

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s