Ben and Sally Wen, married taxpayers filed a return claiming the American Opportunity Tax Credit (AOC). They
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Question:
The IRS mistakenly issued a refund of $7,500. Later, the IRS disallowed the entire AOC; the Wens had already claimed the AOC for their kids in the prior four taxable years. Therefore, the IRS imposed a $1,500 accuracy-related penalty under IRC § 6662(b). The Wens tell you they used FAST-TAX, tax return preparation software and any error were due to confusion with FAST-Tax's instructions.
1. Find a sophisticated legal issue raised by the Wens in their last explanation to you.
2. Briefly discuss the relevant code and regs related to the primary issue
3. Find and discuss a relevant court case.
4. Apply all the laws (Code, regs, cases) that you discussed.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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