Quote Originally Posted by Tthree View Post
The IRS can do whatever it wants. It is its own overseer.
However...... T3, they are subject to judicial review. Even a biased court generally conducts itself within certain boundaries, and making income out of whole cloth, as Biggg is suggesting is not something a court would want a reputation for, not to mention, the court appeal process. But I am aware of atrocious things that IRS has done and gotten away with, and a journal is not a sure defense against this, but a journal does have some value, done well with attention to detail, along with other forms of evidence the IRS mentions in its guidance, and its a necessity for big time gamblers; you can believe that Billy Walters keeps a detailed journal and a file of receipts and other forms of documentation, but then, he's operating it as a business from beginning to end.

It would be hard for an IRS decision of $510,000 to stand, however, if there is no evidence of actually possessing it or spending such a sum of money. WTF? If it does happen, you must bring lawyers and Congressmen into play and pray for the best. In gross miscarriages of justice, you need to pull out all the stops or you'll end up in jail or the poor house for doing absolutely nothing. The upside is that per capita it's extremely rare. You're more likely to drop a file cabinet on your foot IMO.