Quote:
Originally Posted by Geewiz
As a former fed for 30+ years that worked closely with the IRS they only tend to focus on obvious, willful cheats. Close calls in law where a reasonable person could assume they were in compliance will not raise their concern - especially, if there are no other 'issues" with your returns. At worse, you might need to pay additional tax...the penalty and interest will be waived. And, it's not a sure thing that you can't deduct the interest. For the most part, this is too small of an issue for IRS to address unless they are going after a larger target - the whole Morse business structure which is more vexing than the issue of bond interest deduct-ability. Remember, you are dealing with an agency with limited resources...they focus on the important sentence and a couple of hundred dollars a year in deductions (that might be OK) isn't that sentence.
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Geewiz: As a former Government employee I agree with you. Also, if you call the IRS on this and talk to 5 different agents you could get five different answers---none of them definite. This thread reminds me of some of the staff meetings I was in regarding the Federal regulations and "gray" areas that could be interpreted in a number of different ways----oh, what fun! If TV were a city and had put in all the infrastructure using a bond program they would have a city tax as part of your real estate tax bill and you could deduct the entire city tax. Of course we are not a city.......