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Minimum requirements for the job is another reason to disallow the MBA deduction. As I said before, the deductibility of an MBA is very much a facts and circumstances issue. I don't see where you have reviewed the relevant case law closely and stated where your client's fact pattern fits with the winning cases vs. the losing cases. In fact, you haven't even mentioned any of the cases, which leads me to believe you haven't read any. Why is your client still talking with the auditor? And what do the tuition/1098-Ts/transcripts show? Please stop mentioning the wage & income transcript; the only place a scholarship will show is on the 1098-T. And yes, I've had a response within 5 days. I had one within 5 hours on a case with which I was working very closely with the auditor. Actually, it was more like an hour.

They can't until they see the finding, not he said she said....

>>taxpayer is from Colombia on an F-1<< So your position is that an American MBA will not qualify your client for a new job, because years ago he did related work in a developing country? So far you have't posted a single fact to support that, and have taken offense at our suggestions for what needs to be proven and how to research it. [i recommend you present the whole story at once when you go to Appeals. And focus on the taxpayer, not the auditor.]

I would have answered but I was without power until late this afternoon, and then I had to put the generator and all the cords away. Yes, the zero percent cap gain rate for those in the lowest bracket was extended, so I think you have the correct answer.

>>read REALLY carefully<< I did put a disclaimer in my response, "as I read your original post." Your presentation is not very clear. You said tuition was on the wage and income statement, so I guess I misunderstood that to refer to the employer rather than a worksheet in your software. I also misunderstood that the taxpayer was working on the MBA to improve job skills, although I admit all you actually said was that the employer had declared it was not a requirement for the job. Anyway, if the audit has been closed then you can appeal. But the first thing I would do with the power of attorney is pull this client's transcripts, so you can see what the auditor saw. What difference does it make if the auditor IS incompetent? The only thing that matters is whether she is right.

>>The MBA was 1,000,000% to improve his skills in his current occupation.<< I doubt Tax Court will be impressed by your math, especially since it's irrelevant anyway. Basically the IRS position is that an MBA automatically qualifies the taxpayer for a new profession. You will need to show, for example, that graduate study in THIS field don't usually lead to promotion into management, or that management is not a different profession. Or maybe your client was extra smart, already working at a level that typically does utilize an MBA. This is a well-litigated issue, so there ARE good arguments and precedents out there. Knock off the hyperbole and the ad hominem attacks (not to mention the typos), and get real.

Another way the IRS violates the constitution, IMO, is that with them you are presumed guilty until you can prove you are innocent. Not the way our system is supposed to work.

It's late and my brain is about gone. I am working on a fiduciary tax return. Among the income items is a 1099-R for $63000 which represents distribution to the estate of an annuity owned by the decedent. This annuity was reported on Form 706 and estate tax was paid on it. Am I correct in saying that this annuity is IRD and that it qualifies for the estate tax deduction on the fiduciary return? Thanks for your help! Gina