Businesses Should Maximize Tax-Favored Reimbursements (1)

Sometimes, you can learn a lesson from reading a tax case even if it’s not what was likely intended by the Tax Court. That’s precisely what happened when I browsed through a recent summary opinion, Armstrong v. Commissioner.

On its face, the case is unremarkable. The taxpayer claimed unreimbursed business expenses of $26,842 on her 2015 tax return. The IRS disallowed the deductions and issued a notice of deficiency for $2,640. The Tax Court, after reviewing each of the categories of deductions, agreed with the IRS.

It would be easy to overlook this case for two ...