Cathy Ross vs. IRS Commissioner

Cathy Ross, a family child care provider from Maryland, cared for children 24 hours a day, seven days a week, 51 weeks a year in her home. Her Time-Space Percentage was 98%. The original auditor would not accept any percentage above 50%.

I represented Cathy and we appealed her case. The appeals officer created his own formula for determining a 56% Time-Space Percentage that involved tracking the amount of space each child used while in her home.

I prepared a lengthly argument for why she was entitled to a 98% Time-Space Percentage.

For further information:

IRS Tax Court Accepts 98% Time-Space Percentage!

Tom Copeland letter to the IRS Tax Court attorney arguing for the 98% Time-Space Percentage.

Cathy Ross Thank You Letter to Tom Copeland.

Recommendations from a Child Care Provider if You Are Audited by the IRS.

Categories: IRS and IRS Audits, Record Keeping & Taxes, Time-Space Percentage

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