Bryan Camp has published an article on the TaxProf Blog, titled “Lesson From The Tax Court: The Habit #1 of Highly Successful Taxpayer,” which reveals the importance of careful accounting in discussing the case of Michael K. Simpson and Cynthia R. Simpson v. Commissioner, T.C. Memo. 2020-100 (July 7, 2020) (Judge Buch). The article begins as follows:
In Michael K. Simpson and Cynthia R. Simpson v. Commissioner, T.C. Memo. 2020-100 (July 7, 2020) (Judge Buch) the hapless taxpayers — devotee’s of Stephen Covey’s 7 Habits of Highly Effective People — not only failed to separate personal from business expenses, they also confused entity returns and personal returns. The case is an object lesson on the importance of taxpayers properly accounting for business expenses and personal expenses. Careful accounting is probably the #1 Habit of Highly Successful Taxpayers.
Details below the fold.
Click here to see the full article: “Lesson From The Tax Court: The #1 Habit of Highly Successful Taxpayers”
Posted by Melissa Zheng, Associate Editor, Wealth Strategies Journal.