Monthly Archives: September 2007

Studying Abroad, Taxes, and Poker

Posted on September 17, 2007 by Russ

A reader asks, “I’m currently studying in undergraduate university in the U.S., where I hold my only citizenship. I was thinking about studying abroad, probably in Australia. I was thinking about going from around Jan.1-December 31st of 2009, or from … Continue reading →

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Lots of Fraud

Posted on September 16, 2007 by Russ

Tax fraud comes in many shapes and forms. This weekend has given me a plethora of examples. We’ll start in Dayton, Ohio. Martin Dorf found an interesting way to short the IRS: Report ten cents on the dollar. From 2001 … Continue reading →

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Termination of “Tax Termination Kit”

Posted on September 13, 2007 by Russ

Wouldn’t it be nice if we could buy a $39.95 package that would terminate our taxes? Tax protester Robert Schulz offered just such a package…until the US government got an injunction against him. But the IRS had this idea. Wouldn’t … Continue reading →

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When Gambling Isn’t A Business

Posted on September 13, 2007 by Russ

A CPA likes to gamble, and shows his gambling activity as a second business (his other business activity is his accounting practice). The IRS challenges this, claiming that he’s really an amateur gambler. The Tax Court has to decide who … Continue reading →

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If You Sell $6.5 Million of Property, Someone May Notice

Posted on September 11, 2007 by Russ

When you sell your home (assuming it’s your principle residence), you get to exclude the first $250,000 of income ($500,000 if you’re married and filing a joint return). That’s a nice tax break. But if you sell investment property, you … Continue reading →

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AB1546: Eliminating Taxpayer Rights

Posted on September 10, 2007 by Russ

The California Legislature is currently looking at AB1546. The initial goal of this legislation was to make the LLC “fee” (tax) legal. This fee is based on gross receipts. As I wrote last year, courts ruled twice last year that … Continue reading →

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Conduit or Right of Claim?

Posted on September 10, 2007 by Russ

The Tax Court decided an interesting case today. An individual receives gambling income, but has given the payee a Form 5754, stating that the income belongs to another individual. However, the other individual doesn’t claim the income. The IRS goes … Continue reading →

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If You Embezzle, Don’t Forget to Pay Your Taxes

Posted on September 9, 2007 by Russ

In the United States, almost all income is taxable—including illegal income. Yes, if your a thief, you are supposed to report your ill-gotten gains on your tax returns. If you don’t, your guilty of tax evasion. Yes, it’s entirely possible … Continue reading →

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Hail! Hail! to Michigan!

Posted on September 9, 2007 by Russ

The Michigan Wolverines football team hasn’t done very well this year, losing their first two games to Appalachian State and Oregon, both at home. There are probably a lot of angry Wolverines fans. While the University of Michigan struggles, the … Continue reading →

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Tennessee Crack Tax Ruled Unconstitutional

Posted on September 7, 2007 by Russ

Lawmakers in Tennessee had an interesting idea a couple of years ago. Why not tax illegal drugs? So legislators in the Volunteer State required sellers of illegal drugs to get a tax stamp on their merchandise. If sellers were caught … Continue reading →

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