Tactical Taxes Etc

10/08/2026

LISTEN UP TRUCK DRIVERS!
Daily Tax Facts, Fines, and Federal Fun

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You can’t deduct the family pet, but a working guard dog can be a fully deductible business expense.

In Cox v. Commissioner (2005), a taxpayer operated a used-car business located in a high-crime area of Houston.

To protect the commercial inventory and premises from frequent theft and vandalism, he maintained a guard dog on-site.

The taxpayer wrote off the food, veterinary care, and maintenance costs associated with keeping the animal on duty.

Because the animal lived at the commercial site, fulfilled a genuine security role, and was not an everyday family pet, the IRS didn't even contest the deduction.

To survive audit scrutiny, business animals require clear documentation proving an exclusive commercial purpose over personal companionship.

Keep your business assets guarded and your deductions documented—stay compliant with Tactical Taxes Etc.

10/07/2026

Daily Tax Facts, Fines, and Federal Fun

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An African safari sounds like an expensive luxury vacation.

For one dairy company, the Tax Court ruled it was a deductible business trip.

In Sanitary Farms Dairy, Inc. v. Commissioner (1955), the dairy owners traveled to Africa on a big-game hunting expedition.

They photographed and filmed the trip, sent back letters to customers, and invited local patrons to view the footage and mounted trophies.

The promotion drove significant foot traffic and massive local publicity for their milk and ice cream.

The IRS argued the trip was an inherently personal vacation and disallowed the write-off.

The Tax Court sided with the dairy, ruling that because the safari produced direct, powerful advertising results, the entire cost was an ordinary and necessary business expense.

Know how to substantiate unique marketing campaigns—stay compliant with Tactical Taxes Etc.

10/06/2026

Daily Tax Facts, Fines, and Federal Fun

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Dental work is normally a strictly personal, medical-only expense.

But in one landmark case, false teeth became a full-blown business write-off.
In Denny v. Commissioner (1935), a professional actor had his upper teeth knocked out while filming a fight scene for a boxing movie.

Without dental repairs, his physical appearance would have ended his acting contract.
He purchased a replacement set of upper artificial teeth and deducted the cost as an ordinary and necessary business expense.

The IRS disallowed the deduction, arguing dental work is inherently personal living care.
The Board of Tax Appeals overruled the IRS and allowed the write-off.

Because the injury occurred during employment and the replacement was necessary to complete his role, it qualified as a business deduction.

Know when an ordinary personal item becomes a legitimate business necessity—stay compliant with Tactical Taxes Etc.

10/05/2026

Daily Tax Facts, Fines, and Federal Fun

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You can sometimes claim business tax deductions even if you lost every single receipt.

In Cohan v. Commissioner (1930), Broadway legend George M. Cohan spent tens of thousands of dollars entertaining actors, critics, and producers in cash.

Because he kept virtually zero paper records, the IRS disallowed all of his entertainment deductions.

The federal appellate court stepped in and established the famous Cohan Rule.

The court held that if a taxpayer clearly incurred legitimate business expenses, the IRS cannot deny the deduction entirely just because receipts are missing.

Instead, courts are allowed to make a reasonable estimate of the allowable deduction based on credible secondary evidence.

However, Congress later passed IRC Section 274(d), strictly excluding travel, business meals, and gifts from the Cohan estimate loophole.

Don't gamble your deductions on estimates—stay compliant with Tactical Taxes Etc.

10/04/2026

Daily Tax Facts, Fines, and Federal Fun

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Fostering rescue animals in your home can yield legitimate tax deductions.

In Van Dusen v. Commissioner (2011), a volunteer cared for dozens of feral rescue cats on behalf of a certified 501(c)(3) nonprofit.

She deducted over $12,000 for veterinary bills, cat food, litter, and related utility costs as unreimbursed volunteer expenses.

The IRS disallowed the entire write-off, claiming the costs were personal pet care.

The U.S. Tax Court ruled largely in her favor.

Unreimbursed expenses incurred directly while providing volunteer services to a qualified charity count as deductible charitable contributions.

The catch: Any single expense of $250 or more requires a contemporaneous written acknowledgment from the charity.

Know how volunteer work impacts your bottom line—stay compliant with Tactical Taxes Etc.

10/02/2026

Daily Tax Facts, Fines, and Federal Fun: Fraud Friday Edition

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Reality television fame couldn't shield the stars of Chrisley Knows Best from federal investigators.

Todd and Julie Chrisley flaunted an ultra-wealthy lifestyle while orchestrating an extensive financial fraud scheme.

They secured over $30 million in fraudulent bank loans by submitting fabricated financial statements and forged credit reports.

When their hit show began generating millions in production income, they hid the earnings in a company registered under Todd's mother's name.

The couple routed payments to avoid IRS levies and evade over $500,000 in past-due federal taxes.
In 2022, a federal jury convicted them of bank fraud, tax evasion, and conspiracy to defraud the IRS.

Todd was sentenced to 12 years in federal prison, and Julie received a 7-year sentence, alongside millions in ordered restitution.

Hiding income behind family entities won't fool auditors—stay compliant with Tactical Taxes Etc.

10/01/2026

Daily Tax Facts, Fines, and Federal Fun

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Transferring hundreds of thousands of dollars to a partner isn't always taxable income.

In United States v. Harris (1991), a wealthy widower provided twin sisters over $500,000 each over several years.

The IRS prosecuted both sisters for criminal tax evasion, alleging the payments were taxable compensation.

The defense argued the money constituted nontaxable gifts stemming from affection and companionship.

A federal appellate court threw out the criminal convictions.

The court held that the line between taxable personal compensation and nontaxable gifts in romantic relationships was too ambiguous to support a willful evasion charge.

Know the clear line between compensation and gifts—stay compliant with Tactical Taxes Etc.

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09/29/2026

Daily Tax Facts, Fines, and Federal Fun

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Cosmetic surgery is almost never deductible as a business expense, but one wild Tax Court case made history.

In Hess v. Commissioner (1994), an exotic dancer performing under the stage name "Chesty Love" underwent extreme breast augmentation.

She enlarged her bust size to 56FF, adding roughly ten pounds per implant, which caused serious physical discomfort in her personal life.

The physical alteration doubled her performance revenue, and she planned to remove them immediately after retiring from the stage.

The IRS disallowed the write-off, claiming cosmetic surgery is strictly an inherently personal expense.

The U.S. Tax Court ruled in her favor, treating the implants as depreciable "stage assets" because they were useful only in her trade and actively detrimental outside of work.

Know the rare boundaries between business assets and personal expenses—stay compliant with Tactical Taxes Etc.

09/27/2026

Daily Tax Facts, Fines, and Federal Fun

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The Boston Tea Party wasn't actually about a high tax on tea.

It was a protest against the Tea Act of 1773.

The Act actually lowered the tax the British East India Company paid. But it gave the company a monopoly, angering colonial merchants.

The colonists weren't mad about paying more for tea; they were mad about the principle of "taxation without representation."

They also hated the government giving a favored company an unfair advantage.

Keep your business's principles and taxes in order—stay compliant with Tactical Taxes Etc.

09/26/2026

Daily Tax Facts, Fines, and Federal Fun

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The IRS officially requires criminals to report their illegal profits.

IRS Publication 17 explicitly states that income from illegal activities—including dealing illegal drugs—must be declared on your tax return.

The instruction manual directs taxpayers to report drug profits on Schedule 1 (Form 1040), line 8z, or Schedule C.

If you steal property, the IRS also orders you to report its fair market value in the year it was stolen.
The only exception: you return the stolen items to their rightful owner during that exact same tax year.

Bribes and kickbacks must be reported as taxable income as well, though the cost of the bribe is strictly non-deductible.

Report all your revenue the legal way—stay compliant with Tactical Taxes Etc.