And Chicago tax lawyer Robert E. McKenzie, who has defended rich folks claiming losses on everything from deer farms to race horses to yachts, says the Romneys -–despite the fact that Ann Romney’s statements on what dressage has done for her personally suggests lack of profit motive– likely did all the paperwork right and can assert they thought they’d make a profit, even if they never do. “The way I would argue it is `this horse competed in the Olympics and we’ll breed it and make money off the foal’,’’ says McKenzie. “When you’re that rich you can afford to have talented tax advisers.”
In Robert E. McKenzie‘s latest blog for Forbes’ “IRS Watch,” he explains Audit Techniques Guides (ATGs) that the IRS relies upon for ensuring consistency. According to Mr. McKenzie, the ATGs contain examination techniques, common and unique industry issues, business practices, industry terminology and other information to assist examiners in performing examinations. They come in handy when a business taxpayer is subject to an IRS examination.
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