Monthly Archives: June 2011

Partisan Budget Passed by Democrats, Vetoed by Gov. Brown

Posted on June 17, 2011 by Russ

In the latest episode of As the Budget Churns, last night Democrats in the California legislature passed a budget but received no Republican votes for it. The budget that passed was typical for the last few years: Full of gimmicks … Continue reading →

Posted in California | Tagged | Comments Off on Partisan Budget Passed by Democrats, Vetoed by Gov. Brown

Son of FBAR Now Looks Uglier for 2012

Posted on June 15, 2011 by Russ

The IRS posted a revised draft of Form 8938, the “Son of FBAR.” I’d normally note the highlights; however, in this case let’s look at the lowlights: First, the form is far more extensive than the original draft. Let’s assume … Continue reading →

Posted in IRS | Tagged | 3 Comments

Is a Taxpayer Liable for the Accuracy Penalty When a Preparer Omits a 1099?

Posted on June 14, 2011 by Russ

Everyone is human. Sometimes we forget that 1099 on the tax return. Today, the Tax Court looked at a case where a tax professional omitted just one 1099. The problem was that this 1099 represented $3.4 million of income, and … Continue reading →

Posted in Tax Court | 1 Comment

If It’s Not in Print…

Posted on June 14, 2011 by Russ

Today, the US Tax Court looked at the case of a citizen of South Korea, and his gambling. The petitioner argued that the Korea – US Treaty of Friendship, Commerce, and Navigation exempts gambling income; alternatively, that the gambling income … Continue reading →

Posted in Gambling | 1 Comment

Phony Liens, Real Jail

Posted on June 9, 2011 by Russ

Here’s a strategy that’s guaranteed to endear yourself to the IRS and other officials at the federal government. First, get yourself in trouble with the SEC. Thanh Viet Jeremy Cao of nearby Rancho Santa Margarita did just that: He was … Continue reading →

Posted in Scams | Comments Off on Phony Liens, Real Jail

No Sniping at the Supreme Court

Posted on June 7, 2011 by Russ

The Supreme Court denied Wesley Snipes’ appeal today. Wesley Snipes will likely remain in prison until 2013 on his failure to file tax return charges. The Supreme Court rarely hears tax charges, and there really wasn’t either some novel issue … Continue reading →

Posted in Tax Evasion | Tagged | Comments Off on No Sniping at the Supreme Court

Tax Amenesty in Colorado this Fall

Posted on June 4, 2011 by Russ

Colorado Governor John Hickenlooper signed a bill authorizing a tax amnesty in Colorado. The amnesty period will be from October 1st to November 15th. It applies to any tax debt owed as of December 31, 2010. Additionally, if the Colorado … Continue reading →

Posted in Colorado | Comments Off on Tax Amenesty in Colorado this Fall

You Mean I Have to Pay Tax on my Embezzlement Proceeds?

Posted on June 4, 2011 by Russ

Yes, illegal income is just as taxable as legal income. If you embezzle funds you have to report that income as “Other Income” on line 21 of Form 1040. Eugene Ceriello discovered this reality. Mr. Ceriello ran the back-office operation … Continue reading →

Posted in Tax Evasion | Comments Off on You Mean I Have to Pay Tax on my Embezzlement Proceeds?

When You’re Frivolous, Reconsidering the Frivolity Can be Expensive

Posted on June 2, 2011 by Russ

Every so often I report on a frivolous case at the Tax Court. You know, the people who claim that only income earned outside of the US is subject to tax, or that I’m a citizen of California, not the … Continue reading →

Posted in Tax Court | Comments Off on When You’re Frivolous, Reconsidering the Frivolity Can be Expensive

New Circular 230 Released: Welcome RTRPs!

Posted on June 1, 2011 by Russ

Ah, the acronym. In the world of tax preparation there are Enrolled Agents (EAs), Certified Public Accountants (CPAs), Attorneys (the acronym fails me here), and the new Registered Tax Return Preparers (RTRPs). The IRS regulates tax professionals who practice before … Continue reading →

Posted in IRS | Tagged , , | Comments Off on New Circular 230 Released: Welcome RTRPs!