Bad Investments No Excuse For Tax Neglect, Tax Court Says

Law360, New York (January 29, 2014, 1:27 PM EST) -- The U.S. Tax Court ruled Tuesday that imprudent business decisions are not an excuse for failure to pay back-due taxes, slapping a couple that owns a prepaid wireless communication company with almost $800,000 in taxes plus interest.

Judge Maurice B. Foley rejected arguments by Jovan and Linda Vercel that although they had millions in assets, they were illiquid, and therefore the couple could not pay their 2009 tax debt of $765,000.

“The illiquidity of petitioners' assets, however, was a result of their voluntary investment decisions and...
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