Tax Penalties for Multi-Level Marketing Contractor Get Upheld

The US Tax Court on Tuesday largely upheld the IRS’ determination of tax deficiencies and penalties for an independent contractor for a multi-level marketing company and his wife.

Gina Jaha and Bob Anderson are liable for deficiencies and penalties for their 2005 to 2009 tax years, Judge Tamara W. Ashford said. Anderson earned commissions from Mannatech Inc., selling its food supplements and also recruiting and training “downline distributors” in California and Oregon, but he failed to file income taxes.

The IRS examined Anderson, who claimed he lost most of his tax records over several moves, and assessed deficiencies and penalties ...