http://www.ustaxcourt.gov/InOpHistoric/Hiolmesopn.TCM.WPD.pdf

I know a ton of guys who will be biting their nails until the statute of limitations is out for the years they worked oconus. this will cause alot of trouble for alot of guys that don't know the ruling. I wonder also if it will be retroactive back to the beginning of the heavy use in bdad... I and alot of guys were giving totally BS guidelines if so.

The difference is this guy did not file any taxes at all and then claimed zero income. The 346? day rule is where some guys may get jammed up but as long as you did your best to pay what you think you had to I don't think it will be bad. Next to DOS the IRS is the most useless agency we have in our Government, that is the only business I know that takes in less than it costs to have them oppress citizens.

That's a good point. Not paying any taxes at all definitely got this guy flagged. I wonder if, since this case came out this year, the IRS is going to be scrutinizing civilian contractor returns more closely from now on.

I would say they will start with anyone that BW has worked. They love us so much already

In my case I tried to be exact with my taxes and always use a CPA. The last thing I want is leaches in my back pocket. Lawyers don't even understand the tax code, the whole thing is a grey area which gives the IRS latitude on how to enforce it. A perfect example is negotiating your debt to the IRS or disputing it in most cases and you can settle with less taxes. This alone makes you wonder if it is the law why would they settle?

The IRS is a administrative machine, a close friend who was an IRS agent and later moved to the FBI told me that they have buildings with thousands of people that do nothing more than enter data and flags are generated by software, so in essence it seems that taxes are an automated extortion machine directed at those that actually work for a living. I have no problem in paying my fair share of taxes as long as everyone else does the same. In the 2010 tax cycle it was determined that 47% of Americans pay the taxes for the nation, and in some cases people that do not pay taxes actually get a check, from the 47%. So in short I guess they would scrutinize Contractors more if you cause red flags and in the contracting profession I can see where that would happen.

But if you are a knucklehead and pay No Taxes at all or do the proper filings then expect a visit from them. Two things in life are certain, paying Taxes and Death.