Cheesecake Factory Takes IRS to Tax Court

Cheesecake Factory Takes IRS to Tax Court

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Forbes reports that The Cheesecake Factory has filed a Tax Court Petition challenging an IRS deficiency assessment of $838,000:

In a bit of reflux from the big Wall Street scandal involving backdated stock options, the Cheesecake Factory has sued the Internal Revenue Service over its disallowance of $2.7 million of deductions for executive compensation.

A just-filed U.S. Tax Court lawsuit by the Calabasas Hills, Calif.-based casual dining chain disputes a bill from the feds for $838,000 in additional taxes and accuracy-related penalties for 2005, plus an unspecified amount of interest. A spokesperson for the company Thursday declined comment.

I hope the Cheesecake folks prevail because if they lose and are forced out of business, no more Oreo Cheesecake for me.

The petition is not yet available for download, but here is the Docket Sheet.

About Peter Pappas

Peter is a tax attorney and certified public acccountant with over 20 years experience helping taxpayers resolve their IRS and state tax problems.

He has represented thousands of taxpayers who have been experiencing difficulty dealing with the Internal Revenue Service or State tax officials.

He is a member of the American Association of Attorney-Certified Public Accountants, the Florida Bar Association and The Florida Institute of Certified Public Accountants and is admitted to practice before the United States Tax Court, the United States Supreme Court, U.S. District Courts - Middle District of Florida