Author Archives: Russ

Two Sets of Books Aren’t Better than One

Posted on July 22, 2012 by Russ

I’ve found that the one set of books I keep is plenty. Why would I want (or need) a second set of records showing my income and expenses? Of course, I don’t have a Bozo mind, and I don’t think … Continue reading →

Posted in Tax Fraud | 1 Comment

Attorney Gets Tax Lien, Then Allegedly Commits Tax Evasion

Posted on July 22, 2012 by Russ

Lee Gottesman is a bankruptcy attorney in Toms River, New Jersey. He is also facing a heap load of tax troubles for some of the usual reasons. According to the Department of Justice, Mr. Gottesman allegedly created a sub account … Continue reading →

Posted in New Jersey, Payroll Taxes, Tax Evasion | Comments Off on Attorney Gets Tax Lien, Then Allegedly Commits Tax Evasion

More Municipalities in Trouble in California

Posted on July 22, 2012 by Russ

Yet another California city may be joining Stockton, Mammoth Lakes, and San Bernardino in bankruptcy. According to the Huffington Post, Compton has $3 million on hand but must pay out $5 million in the next month. The problems are the … Continue reading →

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Another FATCA Consequence: Sending 1042-S’s With No Withholding

Posted on July 19, 2012 by Russ

One of my clients who played in the World Series of Poker asked me to prepare his Form 1042-S’s to show the required withholding for some of his backers. The 2012 form is available, and it looks identical to the … Continue reading →

Posted in Gambling, International, IRS | 1 Comment

Sigel Gets Two Years

Posted on July 15, 2012 by Russ

Philadelphia rapper Beanie Sigel pleaded guilty to tax evasion last year. He was sentenced to two years at ClubFed, and must make full restitution to the IRS. He must report to prison in September.

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The Tax War Against Medical Marijuana

Posted on July 15, 2012 by Russ

Think what you may about medical marijuana (legal in about 17 states), there is a certainty for federal income tax purposes: Marijuana is a Class I narcotic so deducting expenses on a tax return for a marijuana dispensary is a … Continue reading →

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In the Battle Between the Board of Equalization and the Humble Taco Truck…

Posted on July 15, 2012 by Russ

Entrepreneurs look for niches: Opportunities that aren’t being served well by current businesses. Enter the humble taco truck. These food kitchens on wheels tend to serve business workers looking for a quick and reasonably priced meal. I saw them daily … Continue reading →

Posted in California, Sales Tax | Tagged | 1 Comment

Did a Maryland Tax Increase Cause Taxpayers to Flee the State?

Posted on July 9, 2012 by Russ

An organization called ChangeMaryland has a new study that states that 31,000 individuals left the state from 2007 to 2010. ChangeMaryland believes that it’s the tax hikes in the state that have caused the exodus. Maryland is a decidedly liberal … Continue reading →

Posted in California, Maryland | 2 Comments

If Only He Had Driven a Yugo Instead of a Ferrari

Posted on July 8, 2012 by Russ

Sometimes it’s best to be inconspicuous. That’s definitely the case if you’re doing something that’s illegal. From Bergamo, Italy comes the story of an unidentified Italian man who loved his Ferrari F131. Even in Italy that’s a car that will … Continue reading →

Posted in International, Tax Evasion | 2 Comments

When an Agent’s Fees Are Not Deductible

Posted on July 5, 2012 by Russ

Suppose you are a professional athlete and you hire a sports agent to negotiate with you. Those fees are, in the United States, generally deductible as an “ordinary and necessary” business expense. However, the same is not true in Canada. … Continue reading →

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