Author Archives: Russ

The Tax Court Expects a Tax Preparer to Know How to Substantiate Deductions

Posted on November 8, 2011 by Russ

An unenrolled tax professional found herself in Tax Court yesterday. The IRS claimed that her claimed deductions weren’t valid; she felt she had even more deductions coming. The Court had to determine who was right. First, I’m an enrolled tax … Continue reading →

Posted in Tax Court | Comments Off on The Tax Court Expects a Tax Preparer to Know How to Substantiate Deductions

“Unwritten, Arbitrary, and Capricious Policies”

Posted on October 31, 2011 by Russ

While I just praised the Board of Equalization for doing something smart, it’s time for a dose of reality in dealing with the world of California bureaucracy. A gentleman named Aaron Greenspan developed a product called FaceCash. California has a … Continue reading →

Posted in California | Tagged , | 1 Comment

The BOE Does Something Smart

Posted on October 31, 2011 by Russ

One of my clients received a letter from the California Board of Equalization: Our records of your qualified purchaser use tax account indicate that you have filed “zero returns” (no use tax to report) for three consecutive years. Therefore, this … Continue reading →

Posted in California, Sales Tax | Comments Off on The BOE Does Something Smart

A Hockey Player, A Tax Refund, Two Thefts, and Fraud

Posted on October 28, 2011 by Russ

Saku Koivu is a center for the Anaheim Ducks (they won in Minnesota last night,) and is a resident of Quebec. In September 2009 he received a tax refund of $140,899.04 from Quebec (Mr. Koivu used to play for the … Continue reading →

Posted in Tax Fraud | Tagged | Comments Off on A Hockey Player, A Tax Refund, Two Thefts, and Fraud

Embezzler Forgets Line 21

Posted on October 28, 2011 by Russ

Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity. So states … Continue reading →

Posted in Tax Evasion | Comments Off on Embezzler Forgets Line 21

Irene E-File Deadline is Halloween Morning

Posted on October 26, 2011 by Russ

I just spoke with my software vendor and learned that the e-file deadline for those impacted by Hurricane Irene is 9am EDT on October 31st (6am PDT). Effectively, the deadline is Sunday night for me. As to why the IRS … Continue reading →

Posted in IRS | Tagged | Comments Off on Irene E-File Deadline is Halloween Morning

A Chestnut Is in the Rough

Posted on October 24, 2011 by Russ

Another week, two more individuals have been sued by the Department of Justice for allegedly promoting phony tax schemes. Rodney Chestnut and Nafeesah Hines are alleged to have found a unique way for you and I to obtain tax refunds: … Continue reading →

Posted in IRS, Scams | Comments Off on A Chestnut Is in the Rough

What the New Form 1099-K Hath Wrought: Changes on Business Tax Forms

Posted on October 24, 2011 by Russ

There’s a new information reporting form coming this year: Form 1099-K. This form will report how much in payments are received by anyone via credit card and other third party payment systems (e.g. PayPal). This seems like a good way … Continue reading →

Posted in IRS | Tagged , | Comments Off on What the New Form 1099-K Hath Wrought: Changes on Business Tax Forms

PTIN Follies, Year 2

Posted on October 20, 2011 by Russ

The IRS announced today that tax professionals can renew their PTIN, an identification number used on tax returns. Seeing no reason to delay spending $63.00 I went headfirst into the process. What a kludge. And yes, I’m being derisive. The … Continue reading →

Posted in IRS | Tagged | 1 Comment

An Intuit of a Problem

Posted on October 20, 2011 by Russ

I have more information on the coding issue: The problem lies with my software company, not the IRS. It seems that in a limited number of cases, my software (ProSeries, made by Intuit) returns a code “5” indicating that an … Continue reading →

Posted in Tax Preparation | Tagged , | Comments Off on An Intuit of a Problem