In Barker v. Commissioner of Internal Revenue, No. 19-11994 (11th Cir. 2021), the Tax Court’s upholding of the IRS’s determination of an income tax deficiency (individual) was affirmed. The taxpayer started an entertainment company (partnership for tax purposes). As a passthrough entity, the company paid no income tax and its losses flow directly through to the taxpayer. For the tax year at issue, the taxpayer did not file his tax return until five years later.
For more details, see USCA11 Case: 19-11994, (11th Cir. 2021).
Posted by Jessica Ji, Associate Editor, Wealth Strategies Journal.