Couple Owe Taxes on Unreported Income, but Beat Fraud Claims

A couple are responsible for millions of dollars in unreported income between 2012 and 2014, but evaded the associated fraud claims made by the IRS, a Monday opinion of the US Tax Court held.

Mark and Jessica Chernomordikov are liable for tax penalties resulting from failure to report income gained from a business they became involved in following the death of a relative, Judge Cary Douglas Pugh said for the court.

They “neither claimed nor introduced credible evidence sufficient to show” that the IRS should bear the burden of proof under Section 7491 as to any relevant factual issue, Pugh ...