Monthly Archives: August 2008

Three Years for Abject Stupidity

Posted on August 27, 2008 by Russ

Back in April I reported on Martha Vernon and her daughter Tiffany Dunbar. The team engaged in perhaps the stupidest Bozo scheme a tax preparer could: They stole names and social security numbers from her employer, invented a phony W-2 … Continue reading →

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The Mortgage That Wasn’t

Posted on August 27, 2008 by Russ

Most of us have mortgages on our homes. Joe Kristan has an excellent write-up on a Tax Court case decided yesterday, where the petitioners had a mortgage, but: – They recorded the mortgage the morning of the trial; – They … Continue reading →

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An Exit Tax and a Wealth Tax for Californians?

Posted on August 25, 2008 by Russ

An activist is now attempting to obtain 694,354 signatures to place a wealth tax/California exit tax on the 2010 ballot. This initiative would: – Impose a one-time tax of 55% on property exceeding $20 million of a California resident or … Continue reading →

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Decoding Some Bozos

Posted on August 24, 2008 by Russ

It was a busy week for the bozo side of the tax profession. Three preparers found themselves in hot water, and in one case some customers will be decoded into the mess. First, from Beaufort, South Carolina, Sally Berry, the … Continue reading →

Posted in Tax Evasion | 1 Comment

Fake Priest Had False Returns

Posted on August 24, 2008 by Russ

Earl Wolfe was an unlicensed architect in Jupiter Farms, Florida. That’s one crime in itself. He earned around $750,000 but reported only $600 on his tax returns. The IRS and Department of Justice weren’t appreciative of his efforts, and he … Continue reading →

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Two From the Not Safe for Work Profession

Posted on August 24, 2008 by Russ

I’ve written in the past that there’s something about Escort Services that somehow get their owners in tax trouble. Late last week two other individuals in related industries pleaded guilty to tax evasion charges. First, from Eugene, Oregon, comes the … Continue reading →

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Good Summary of Hyatt Case

Posted on August 20, 2008 by Russ

The Las Vegas Review-Journal has published an excellent summary of the Gilbert Hyatt case and judgments. Mark Hutchison, Mr. Hyatt’s lead attorney, believes that the Franchise Tax Board will appeal the case. (I agree with him that the case will … Continue reading →

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This Week for the Budget? I Don’t Think So

Posted on August 19, 2008 by Russ

California Assembly Speaker Karen Bass told the Wall Street Journal that she expects to reach a budget compromise this week. I doubt it. The Democrats are still only arguing to increase taxes. Republicans in the Legislature vow that’s not going … Continue reading →

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Takeout Is Taxable

Posted on August 19, 2008 by Russ

That seems obvious, right? You need to charge sales tax on items that are picked up. Hopefully it also seems obvious that if you’re a liquor store owner you need to include takeout items in your income. There’s no exemption … Continue reading →

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10 Years, 2 Cars, 4 Pieces of Property, and $2.7 Million

Posted on August 17, 2008 by Russ

Earlier this year I posted about a complex tax fraud case out of Salt Lake City. Several individuals were accused of helping various other individuals and businesses evade about $20 million in taxes. Three pleaded guilty. One of those who … Continue reading →

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