Author Archives: Russ

Taxes and Gambling Series

Posted on February 15, 2012 by Russ

About once a year I get asked, “I won some money gambling, but I didn’t get a W-2G. Do I really have to declare that income?” The answer is easy: All income is taxable unless Congress exempts it, and gambling … Continue reading →

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Well, She Didn’t Get Charged with Impersonating a CPA…

Posted on February 13, 2012 by Russ

Every so often a client asks me to send a mortgage company a letter noting that I prepared their tax returns, and verifying their income for those years. I haven’t been asked to send a letter to a mortgage company … Continue reading →

Posted in Scams, Tax Fraud | 1 Comment

Funding the Payroll Tax Cut Extension: Online Poker?

Posted on February 12, 2012 by Russ

Late last year, Congress extended the 2% cut in the payroll (FICA) tax for just two months. That extension expires in 18 days. Congress and the President appear to want it to be extended, but there’s a catch. The extension … Continue reading →

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California Tax Revenues $528 Million Under Budget in January

Posted on February 11, 2012 by Russ

In what must be considered to be a complete non-shock to all but officials of the Brown Administration, California’s tax revenues came in $528 million under budget. According to Bloomberg, most of this is from a $525 billion shortfall in … Continue reading →

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FATCA Regulations Issued

Posted on February 11, 2012 by Russ

Earlier this week the IRS issued proposed regulations to implement the Foreign Account Tax Compliance Act (FATCA). The press release from the Department of the Treasury states, After many months of intensive discussions with foreign governments, the Treasury Department today … Continue reading →

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Burning Down the House

Posted on February 11, 2012 by Russ

Let’s say you own a fixer-upper of a home. Let’s suppose you find that home in another part of town, so you decide to donate your home to the local fire department so they can burn it down. You get … Continue reading →

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Good Riddance: Reconciliation of Credit Card Deposits on Tax Returns Won’t Happen

Posted on February 9, 2012 by Russ

As I noted last week, the problem of entering 1099-K’s for recipients of those forms was deferred until 2012. It turns out that the IRS acquiesced to complaints from tax professional and other groups, including the Retail Industry Leaders Association … Continue reading →

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New York State Street Addresses

Posted on February 9, 2012 by Russ

Earlier, I published a list of IRS Service Center Addresses. New York State has just published its list of street addresses to be used for FedEx, UPS, and DHL. The New York list is by form, and has 15 different … Continue reading →

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New FBAR Requirement that Applies to Everyone

Posted on February 3, 2012 by Russ

I’ll be transmitting my first few tax returns to the IRS this coming week. As I looked at Schedule B, I noticed a change in the questions at the bottom of Schedule B: 7a At any time during 2011, did … Continue reading →

Posted in IRS | Tagged | 4 Comments

A Problem Deferred: 1099-K’s

Posted on February 3, 2012 by Russ

This year sees the introduction of Form 1099-K. This form reports merchant and third-party payments you’ve received. We were supposed to note these on separate lines on our tax returns, but not any longer: For tax year 2011 the IRS … Continue reading →

Posted in IRS | Tagged | 3 Comments