Monthly Archives: February 2008

Germany Isn’t Happy with Liecthenstein

Posted on February 21, 2008 by Russ

The tiny principality of Liechtenstein is known as a tax haven. A few months ago an ex-employee at a bank in Liechtenstein apparently leaked details of some bank accounts held by Germans. The German finance ministry has said that they … Continue reading →

Posted in Tax Evasion | 1 Comment

Tax Protesters Targeted

Posted on February 21, 2008 by Russ

Thinking about using one of the creative arguments in the Tax Protester FAQ? You may want to think again. Besides the fact (and yes, it’s a fact) that all of those arguments won’t hold up the IRS and the Department … Continue reading →

Posted in Tax Evasion | Comments Off on Tax Protesters Targeted

Actors In Tax Trouble

Posted on February 21, 2008 by Russ

Fresh off the Wesley Snipes case two actors are having their own tax troubles. Joe Kristan found this story about Joe Pesci. Mr. Pesci besides appearing in movies has his own production company with employees. The regulation involved states, “You … Continue reading →

Posted in IRS | Comments Off on Actors In Tax Trouble

The Wages of Sin

Posted on February 20, 2008 by Russ

A New Jersey couple frequented Atlantic City, and enjoyed playing the slot machines. In 2004, they were “lucky” enough to win $208,420 in jackpots for which they received W-2Gs. The couple, though, didn’t include that income on their tax return … Continue reading →

Posted in Gambling | Comments Off on The Wages of Sin

Swallows Holding Decision Now Available

Posted on February 19, 2008 by Russ

The Third Circuit Court of Appeals ruling in Swallows Holding, Ltd. v. Commissioner is now available online. The summary of the ruling is: “This case, grounded in the principles of administrative law, requires that we review the validity of an … Continue reading →

Posted in IRS, Tax Court | Comments Off on Swallows Holding Decision Now Available

Foreign Taxpayers Better File on Time…

Posted on February 18, 2008 by Russ

…or at least within 18 months of their due date. Why? IRS regulations hold that if a foreign corporation files after that date they cannot take any deductions. Consider a hypothetical corporation, Foreign Company Ltd., which has US source gross … Continue reading →

Posted in IRS | Comments Off on Foreign Taxpayers Better File on Time…

Fast Food Mogul to Sample 36 Months of ClubFed Cuisine

Posted on February 17, 2008 by Russ

Karl James is the former president of Golden West Taco, Inc., one of the largest franchises of Taco Bell (which is based here in Irvine). Back in 2000 Golden West Taco went into Chapter 11 Bankruptcy protection. Yet Taco Bells … Continue reading →

Posted in Tax Fraud | Comments Off on Fast Food Mogul to Sample 36 Months of ClubFed Cuisine

States of Opportunity

Posted on February 17, 2008 by Russ

Last Tuesday, the Wall Street Journal ran an excellent editorial titled “States of Opportunity.” “But one reason to conclude that taxes are also a motivator is because the eight states without an income tax are stealing talent from other states. … Continue reading →

Posted in California, Nevada | Comments Off on States of Opportunity

Legislature Approves $1 Billion in Cuts; $13.5 Billion to Go

Posted on February 17, 2008 by Russ

California’s legislature sent a $1 billion bipartisan package of budget cuts to Governor Schwarzenegger; the Governator signed the package yesterday. The budget cuts will come primarily from school funding and from Medi-Cal (California’s medical program for low income individuals). Yet … Continue reading →

Posted in California | Comments Off on Legislature Approves $1 Billion in Cuts; $13.5 Billion to Go

Crack Tax Redux

Posted on February 17, 2008 by Russ

New York is facing a budget shortfall this coming year. Governor Eliot Spitzer has an interesting idea about how to fill the gap: a crack tax. I’ve written about these taxes before. Many states have these taxes (21 at last … Continue reading →

Posted in New York | Comments Off on Crack Tax Redux