f0b3c954__Compliance_Initiative_Project__Compliance_initiative_project
[Description] Taxpayers targeted: Yacht-chartering businesses filing Schedule C, especially with reported losses. The IRS is also auditing partnerships and corporations in this project. Notable information: The development of this CIP was based on a case decided April 18, 2011, in U.S. Tax Court: Alain J. and Carol M. Hanover vs. Commissioner of Internal Revenue. The court found that the taxpayer was not engaged in for-profit trade or business from yacht chartering and was ordered to pay approximately $295,000 in taxes and approximately $59,000 in accuracy-related penalties. The IRS’ goal is to deter taxpayers from using a yacht-chartering business as a way to purchase a yacht for personal enjoyment and then deduct losses for the yacht-chartering activities. [Project completion date] 7/31/2013 [Region conducted] North Atlantic [Compliance initiative project] 
Yacht-chartering activities
Chris Reeder » Part 2 of IRS Audit Compliance Initiative Project
Compliance initiative project