"According to the IRS report, the auditor added $1,390,922 to Spears's taxable income as a result of an audit of her S corporation return named Shiloh Standing, Inc. An S corporation is a pass-through entity so the corporation's income or net loss is transferred to the shareholders based on their ownership percentage. The details of Shiloh Standing Inc.'s audit is unknown since the corporation has its own taxpayer ID number (known as an Employer Identification Number or EIN) and was audited separately."
"The auditor then disallowed $608,120 in medical expenses claimed as an itemized deduction claiming that Spears did not prove the amount claimed was a medical expense and paid in 2021. As a result of this disallowance and thanks to complicated tax calculation rules, the IRS added back $334,372 originally claimed as an itemized deduction. The thought of spending $608,120 in medical bills would be toxic for most Americans."
Britney Spears filed a petition in U.S. Tax Court to contest a $720,000 tax and penalty bill for 2021, excluding interest. An IRS auditor added $1,390,922 to her taxable income after auditing her S corporation, Shiloh Standing Inc., which is a pass-through entity. Details of the corporate audit remain unknown because the corporation has a separate EIN and was audited separately. The auditor disallowed $608,120 in medical expenses as unproven, and the IRS added back $334,372 in itemized deductions due to tax calculation rules. The petition asks removal of the accuracy-related penalty and asserts good-faith compliance.
Read at Above the Law
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