Mr. Brinkley was Denied Captial Gain after Deals with Google (NASDAQ:GOOGL)

If one gets no leeway in paying income tax on almost all the issues than there is no benefit of being a high tech or someone ordinary. We are talking about Zave Networks and Google (NASDAQ:GOOGL), after Google bought Zave Networks the company’s originator Mr. Brinkley was entitled 3% from the 93 million dollars which were being used. However, when the company received about 1.8 million dollars and this amount was already taxed in his W-2 form, to address this issue the tax analysts used Form 4852.

So, now we will take a look at what really happened and what the tax court has to say about it. The W-2 form treated all Mr. Brinkley’s income as ordinary; however, Brinkley sent letters to Zave to issue a correct W-2 form and instead of addressing the issue in accordance with “Governing of Law and Forum” in which he had to either request Zave Networks to issue a correct W-2 form or pursue legal recourse against Zave he only sent a letter, threatening Zave that he may file a legal suit against Zave’s false reporting.

Zave Networks provides a platform for solution for marketers, social networks; financial institutions, retailers and mobile wallet providers to inter connect with each other, for the propagation of digital media. It also allows its consumer to access different discounts, offers, etc to choose from. The company seemed like a good deal for Google (NASDAQ:GOOGL), but this deal did not turn out so well after all. Mr. Brinkley used to work for Zave in the beginning and was the Chief Technology Officer.

He had also investment in the company, but soon after the increments of capitals, it seemed Mr. Brinkley was going below the threshold of 3% which he had instigated being the originator of the company. So, he warned that if his interest continues to fall below 3% will not stay with the company. However, after Google (NASDAQ:GOOGL) showed up, Brinkley reminded them of his 3% commitment and long story short, the company (Zave Networks) agreed to compensate of the 3%.

Then came a round of negotiations and finally a new agreement was made. This was the Merger Agreement stating that Zave Networks would give Brinkley the 3.1% in exchange of his shares and position at Zave Networks. However, Mr. Brinkley did not bother to discuss this letter with his accountants and signed the letter without their consent and agreed on becoming a client for Google (NASDAQ:GOOGL). However, the court was not convinced with Brinkley’s appeal.

Brinkley decided to work for Google (NASDAQ:GOOGL) as he found it more appealing than signing bonuses or anything else. Afterwards he faced a penalty from the IRS for “misrepresenting” information, IRS usually omits huge mistakes but their top priorities are whether the person claiming is reporting accurately or not. So, we can say that Brinkley could have avoided the penalties from IRS through consent with his advisers and not taking matters in his own hands.