Monthly Archives: April 2005

IRS Flunks Audit

Posted on April 28, 2005 by Russ

>From the TaxProf Blog, a Washington Post story shows that the IRS spends 60% of its funds for a tuition reimbursement program on administrative expenses. That’s 40% for tuition reimbursement. The IRS, of course, reminds us taxpayers that “Charities scams … Continue reading →

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San Diego’s Mayor Resigns

Posted on April 25, 2005 by Russ

Dick Murphy, mayor of San Diego, announced that he is resigning effective July 15th. His resignation is a direct result of San Diego’s abysmal financial condition, as I noted earlier.

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The IRS Can Tell The Difference Between $14,885 and $200,000

Posted on April 24, 2005 by Russ

Suppose you’re in court testifying in a civil case. You’re asked what your income is. You tell the truth (of course, you’re under oath) that you make $200,000. No problem, right? Unless your tax return says you made $14,885. And … Continue reading →

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“Ex-Oakland Voodoo Chief Indicted for Tax Evasion”

Posted on April 19, 2005 by Russ

Yet another headline that says it all. Apparently (and allegedly), the ex-voodoo chief failed to pay $1.7 million in taxes related to her practice from 1998-2003. I didn’t realize that profession was so lucrative….

Posted in Tax Evasion | 6 Comments

Let’s Increase Taxes (Part n + 1)

Posted on April 19, 2005 by Russ

No, that’s not my wish; rather, it’s director Rob Reiner’s. Today he announced a proposal to increase the normal maximum California tax bracket from 9.3% to 11% (anyone earning more than $1 million would pay an additional 1%). The new … Continue reading →

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Future Deficit in Orange County?

Posted on April 13, 2005 by Russ

As reported by the Orange County Register in this story (free registration required), Orange County faces a potential $80 million deficit if a firefighters union sponsored proposal passes on next year’s ballot. Much of the problem has to do with … Continue reading →

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How Long Should You Keep Your Tax Returns?

Posted on April 12, 2005 by Russ

Forever. That may not seem reasonable, but California has no statute of limitations on collections of tax-related debt. That means that 30 years from now you could receive a letter from the state saying, “You didn’t file so pay us … Continue reading →

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“Cops Moonlighting as Strip Club Bouncers Charged with Tax Fraud”

Posted on April 9, 2005 by Russ

The headline says it all. >From the Chicago Tribune, this story (one-time registration required) details the sordid details, which include: – The strip clubs owner, Michael G. Wellek, had $12 million in cash (in bags) seized in 2003 from his … Continue reading →

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Poker Strikes Out in North Dakota

Posted on April 6, 2005 by Russ

The proposal that would have legalized Internet poker sites based in North Dakota was crushed in the North Dakota senate 44-3, as reported by the Grand Forks Herald. As Senator Carolyn Nelson noted, “There are at least three federal laws … Continue reading →

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Question: When Is a Tax Cut a Tax Increase?

Posted on April 6, 2005 by Russ

Answer: When it’s proposed by our Democratic led legislature. As reported in various news stories (here, in the Los Angeles Times (one-time registration required)), Democrats are proposing to lower California’s gasoline tax. (As you may remember, earlier this year the … Continue reading →

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