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Joseph Cox, CPA reimburses a client for $52,000 because of Cox's incorrect tax advice. Because Cox did not want his malpractice insurance to go up
Joseph Cox, CPA reimburses a client for $52,000 because of Cox's incorrect tax advice. Because Cox did not want his malpractice insurance to go up as it is already expensive, Cox decided not to file a malpractice claim with his insurance company. Can Joseph Cox deduct the $52,000 amount he gave to the client? Identify the IRC code and related court cases to back up your answer.
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