SOMETIMES IT'S GOOD TO GET AUDITED BY THE IRS!
Article #238
Author: Peter S. Muffoletto, C.P.A.
A taxpayer undergoing an audit at an Internal Revenue Service office in Long Island successfully sued the IRS for after he was injured by tripping over a phone cord.
The taxpayer claimed in his lawsuit that he could no longer play golf or have sex with his wife more than once a month after he fell during an audit at an IRS office in New York.
The taxpayer visited the IRS offices to work out a payment agreement for a $60,000 tax bill when he tripped on the phone cord and fell against a cabinet.
He thereafter telephoned the IRS official he was working with from the parking lot to inform him that he had lost the sense of feeling in his leg and was suffering from shoulder pain. He thereafter spent 17 days in hospitals and rehabilitation centers recovering from his injury.
Attorneys for the IRS claimed he was exaggerating his injury but the judge awarded him $862,000 for pain and suffering for the $10 million dollar award he was seeking.
As an added note he will not have to pay taxes on the damages as this was an award for personal injury which is not taxable.
This case begs several questions as to whether the $10 million claim was based more on the loss of golf, or the loss of having sex with his wife?
I have my own thoughts on that issue, being a golfer myself.
And lastly, he was getting sex with his wife prior to the injury more than once a month?
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Our emphasis at Muffoletto & Company is to provide you the proper guidance and understanding of the system so that you avoid taxes to the extent that the law allows.
Should you have questions relating to these matters, tax, financial, and accounting issues, give us a call at (818) 346-2160.
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We at SellingRestaurants feel obligated to educate the public, our customers and our clients with information that can help them make more intelligent buying and selling decisions.
Mel Jones is one of the premier restaurant brokers in the nation having published hundreds of articles on buying and selling a restaurant and bar business, selling thousands of restaurants in CA., WA and AZ and building one of the most copied business models in the brokerage industry. Mel started SellingRestaurants in 2004 with the one simple concept, give the buyers the information they need to make intelligent buying decisions without being pestered by a broker or hiding information, prepare the business for market by researching key details that make or break deals and educate the buyer on the buying process to create an intelligent buyer. Prior to SellingRestaurants, Mel was a Chief Financial Officer for Universal Music Group, the largest music company in the world. There he participated in more than $11.5 billion of merger and acquisition transactions. He also work for top companies such as Nestle Foods, USA. He hold a Bachelors in Business Administration Finance as well as attened Law School at Gonzaga University. Give Mel a call at 480.274.7000 or e-mail him at [email protected] if you have any questions.