The owners of a Miami-based global travel retailer are disputing a $5.8 million tax deficiency from the IRS, arguing in a US Tax Court petition that the agency miscalculated their income for 2016.
Married couple Bernard and Juliette Klepach said in their Feb. 6 petition that the IRS overstated their taxable income by $19.1 million through adjustments tied to a foreign subsidiary owned by their S corporation, Travel Retail Group Holdings LLC. As Travel’s sole shareholders, all of the corporation’s income passed through to the Klepachs.
Specifically, the petition said the IRS improperly calculated the Section 956 investment in US ...