Florida Man Disputes $19.7 Million Tax Deficiency, Penalties

The IRS wrongly slapped a Florida taxpayer with $19.7 million in tax deficiencies and penalties based on an erroneous calculation of his income for the 2021 tax year, according to a petition filed in the US Tax Court.

Russell Klein said he included $63,929 in “other income” on his 2021 tax return, but the IRS incorrectly determined he had additional “other income” of $21.8 million and $20.4 million in short-term capital gains. Those findings ultimately generated a $16.4 million income tax deficiency and $3.2 million accuracy-related penalty, the Dec. 22 petition said.

Klein’s “other income” only included what he earned ...