Re: Rakeback, taxes, and an argument for the IRS
Great info/background. Thanks. Posters like you are a reason for contributing to 2+2, despite the stream of snide idiots thrusting their e-penises as many did in this thread.
Based on your research/experience, do you think its "reasonable" to exclude the rakeback as a rebate? Or do you think the auditors would argue for penalties in an audit? The attorney and I suspect it is reasonable. In any case in my situation rakeback isn't likely to trigger a substantial underpayment penalty. What I wonder is whether an exclusion could be deemed a Sec 6701 abuse (or in your case aiding and abetting) violation. With no "on-point" reg, case or PLR I suspect it would not be.
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