Loopholes > Federal > Tax Determination and Refund Expenses
DEDUCTION LOW SAVINGS INDIVIDUAL

Tax Determination and Refund Expenses

IRC §212(3)

Deduct expenses paid in connection with the determination, collection, or refund of any tax.

Eligibility

Applies to professional fees paid for tax preparation, tax planning, or representation in tax audits/litigation.

Frequently Asked Questions

Who is eligible for the Tax Determination and Refund Expenses?

Applies to professional fees paid for tax preparation, tax planning, or representation in tax audits/litigation.

How does the Tax Determination and Refund Expenses work?

Deduct expenses paid in connection with the determination, collection, or refund of any tax.

What law authorizes the Tax Determination and Refund Expenses?

The Tax Determination and Refund Expenses is authorized under IRC §212(3) of the Internal Revenue Code (Title 26, United States Code).

Statutory Text — IRC §212

Source: Internal Revenue Code, Title 26, United States Code

§ 212. Expenses for production of income In the case of an individual, there shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year—(1) for the production or collection of income; (2) for the management, conservation, or maintenance of property held for the production of income; or (3) in connection with the determination, collection, or refund of any tax. (Aug. 16, 1954, ch. 736, 68A Stat. 69.) Statutory Notes and Related Subsidiaries Denial of Deduction for Amounts Paid or Incurred on Judgments in Suits Brought To Recover Price Increases in Purchase of New Principal ResidenceNo deductions to be allowed in computing taxable income for two-thirds of any amount paid or incurred on a judgment entered against any person in a suit brought under section 208(b) of Pub. L. 94–12, see section 208(c) of Pub. L. 94–12, set out as a note under section 44 of this title.