Monthly Archives: May 2007

The IRS Makes a Mistake; Who Pays?

Posted on May 30, 2007 by Russ

Suppose you discover an error in your 2001 tax return. You’ve forgotten to include a $55,065 deduction that will lower your taxes by $13,769. You timely amend your return to get the deduction (you have three years from the due … Continue reading →

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The Massive Tax Increase You Haven’t Seen or Read About

Posted on May 28, 2007 by Russ

If I told you that you were going to get hit by a massive tax increase, you would rightly ask, “Why haven’t I heard about it on television? Why haven’t I read about it in the media?” But it really … Continue reading →

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Health Care Bills Gain Steam, But There’s a Problem…

Posted on May 27, 2007 by Russ

It appears that legislation for a mandatory health care system with employer mandates may pass the California legislature. Apparently the Governator and our legislators haven’t figured out that high taxes drive out small business from California. Luckily for you and … Continue reading →

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Some Fraud for Your Holiday

Posted on May 27, 2007 by Russ

With tomorrow being Memorial Day, our troops overseas should be in your thoughts and prayers. I’ll be writing about some individuals who are praying to avoid ClubFed. Let’s start in Georgia, where a Bozo tax preparer allegedly decided to take … Continue reading →

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The IRS Overreaches

Posted on May 24, 2007 by Russ

What happens when you receive a Form 1099-MISC, but you never received the income shown on the information return? You don’t include it on your tax return—after all, you didn’t receive the income, so you don’t owe tax on it. … Continue reading →

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He Gambled and He Lost (In More Ways than One)

Posted on May 23, 2007 by Russ

I’ve repeatedly said that gamblers aren’t treated well under the Tax Code. One Michigan resident allegedly had a way around this problem: just ignore the gambling. This may turn out to be a much bigger problem, as he now faces … Continue reading →

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A Big Case for the Supreme Court Later this Year

Posted on May 21, 2007 by Russ

The Supreme Court doesn’t decide many tax cases. They’re usually not that interesting, and it’s rare to see a split among the different circuits in a tax issue. However, a very important tax case will be decided in the next … Continue reading →

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A Dose of Fraud to End the Week

Posted on May 17, 2007 by Russ

The fraudsters have been active in the tax realm this week. We’ve got stories from across the country. We’ll start in Youngstown, Ohio, where Ronald Wells had an idea of how to increase his $1/hour pay as a prisoner at … Continue reading →

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What If a Casino Decides to Ignore the Rules?

Posted on May 17, 2007 by Russ

Suppose you’re a poker player, and you are backed (sponsored) by a friend. You’ve agreed with your friend that for the money that he has given you, you will give him 50% of your winnings. You complete the IRS Form … Continue reading →

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Partially Up In Smoke

Posted on May 15, 2007 by Russ

The Tax Court today looked into whether a non-profit corporation that provides help to the terminally ill and provides medical marijuana to the terminally ill is allowed to deduct its operating costs. The non-profit, Californians Helping to Alleviate Medical Problems, … Continue reading →

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