IRS

Ron Paolucci, whose Loooch Racing Stables finished second nationally in wins in 2017 and 2018,  pled guilty on Feb. 28 to two counts of tax fraud and tax evasion in a federal court in Texas. Paolucci faces up to eight years in prison on the two counts, as well as $350,000 in fines. He will also be required to pay $13 million in restitution to the Internal Revenue Service. The story was first reported by The Paulick Report. The prosecution alleged that, during a seven-year period from 2014 through 2020,...

Additional reporting from Jack Canaley Some will label the recent IRS Case Skolnick v. Commissioner as a win for the government since the court disallowed the deductibility of the losses and classified the operation as a hobby. However, we examined the case in great detail and learned some very valuable lessons that will benefit people in the horse business. The recent ruling, which ultimately was upheld upon appeal by the Third Circuit, provided some clarity and insight into the factors considered in determining the deductibility of losses generated by a...