Author Archives: Russ

Gillette Decision Upheld, But Beware

Posted on October 6, 2012 by Russ

The California Court of Appeals for the First District upheld its earlier ruling in Gillette v. Franchise Tax Board. This means that for tax years from 1993 – 2011 a three-factor formula for apportioning income is valid. Earlier, the same … Continue reading →

Posted in California | 1 Comment

The IRS Takes the Weekend Off

Posted on October 6, 2012 by Russ

Well, sure, Monday is Columbus Day and a federal holiday. That doesn’t bother me. However, the problem is that with just nine days left before the extension deadline, the IRS shuts off all of its computer systems for a scheduled … Continue reading →

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208 Chances to Commit Tax Evasion and Other Stories

Posted on September 30, 2012 by Russ

There are good schemes and bad schemes. Today, I’m focusing on the particularly stupid. From McClellandtown, Pennsylvania comes the story of Sherman Friend. Mr. Friend just knew that the number “1127” would come up in the lottery. He bought 208 … Continue reading →

Posted in Tax Evasion, Tax Fraud | 1 Comment

California Musings

Posted on September 27, 2012 by Russ

Yesterday a client emailed me and asked if I was planning on moving back to California. The answer is easy: no. I could make it stronger, but I’ll let others help with that. First, Dan Walters writes about what will … Continue reading →

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Las Vegas Attorney Accused of Tax Evasion and Structuring

Posted on September 23, 2012 by Russ

On Wednesday, I attended an all-day continuing education seminar put on by the Nevada Society of Enrolled Agents. This happened to be the annual IRS liaison meeting, and a hot topic was the indictment of Randolph Goldberg. This was especially … Continue reading →

Posted in Nevada, Tax Evasion | Tagged | 2 Comments

A Golden Ending

Posted on September 23, 2012 by Russ

Walter Samaszko, Jr. passed away in May of this year. He had been a recluse, and when odors started emanating from his Carson City, Nevada home, neighbors called the authorities. They discovered his body. No one knew his relatives were, … Continue reading →

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Home Is Where the Family Is

Posted on September 23, 2012 by Russ

Last week there was an interesting case out of Iowa regarding domicile. A man was working in South Dakota but his family home was in Iowa. He decided to file as a South Dakota resident. Could it be that South … Continue reading →

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Does the New Unearned Income Medicare Contribution Tax Impact Amateur Gamblers?

Posted on September 23, 2012 by Russ

Over two years ago the Patient Protection Act–aka Obamacare–passed Congress. At the time, no one knew what was in the law. Famously, then Speaker of the House Nancy Pelosi (D-CA) said that, “We have to pass the law to know … Continue reading →

Posted in Gambling, IRS | Tagged | 1 Comment

Is the IRS Time-Barred From Imposing a Penalty on a Frivolous Amended Return?

Posted on September 17, 2012 by Russ

The IRS is allowed to impose a penalty on the filing of a frivolous tax return (Internal Revenue Code Section 6702(a)). Today, the Tax Court looked at a taxpayer who filed a normal tax return, but then filed an amended … Continue reading →

Posted in Tax Court | Tagged | 1 Comment

Well, He Probably Wouldn’t Have Won Reelection

Posted on September 16, 2012 by Russ

John McCauley, Jr. is the Deputy Speaker of the Rhode Island House. He’s not running for reelection. Given that he will be pleading guilty to one count of tax fraud and one count of conspiracy, that’s likely a good decision. … Continue reading →

Posted in Rhode Island, Tax Evasion | Comments Off on Well, He Probably Wouldn’t Have Won Reelection