Author Archives: Russ

Colorado: Let’s Implement a 1207800% Marginal Tax Rate!

Posted on May 25, 2023 by Russ

Consider two taxpayers who enjoy gambling; both are single and residents of Colorado.  Both are amateur gamblers who earn $100,000 of wage income and rent.  Joe Unlucky broke dead even in his gambling, winning $299,000 (using the session method) and … Continue reading →

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Why Were California Returns Extended Again from May to October? (A Theory)

Posted on May 8, 2023 by Russ

Back in January, severe winter storms impacted California.  Much of the state was declared a federal disaster area; these declarations are always county-by-county.  As of today, only two counties in California (both in the northeastern corner of the state) are … Continue reading →

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Why You Use Certified Mail When Mailing Items to Tax Agencies

Posted on April 26, 2023 by Russ

My mother passed away last year (after a long and fruitful life).  I filed her final tax returns–and money was due to both the IRS and California.  I could not use IRS Direct Pay, nor could I have the funds … Continue reading →

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Bozo Tax Tip #1: Everyone Gets the Employee Retention Credit, Right?

Posted on April 14, 2023 by Russ

“Russ,” a client began, “Don’t I qualify for that Employee Retention Credit (ERC) that I keep hearing about?”  I told him he didn’t–his business grew during the Pandemic and he didn’t meet the requirements.  Yes, it’s not free money for … Continue reading →

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Bozo Tax Tip #2: Cash Isn’t Taxable

Posted on April 13, 2023 by Russ

I haven’t run this Bozo Tax Tip in a few years, but it reared its head again just a couple of weeks ago (as you read this). A new client came into my office for the preparation of his tax … Continue reading →

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Bozo Tax Tip #3: We Don’t Need No Stinkin’ Basis

Posted on April 12, 2023 by Russ

If there’s one issue in tax that tax professionals have trouble explaining to clients it’s basis. Your basis in an entity is, generally, the total of your investment in an entity plus income it generated less any distributions from it. … Continue reading →

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Bozo Tax Tip #4: Procrastinate!

Posted on April 11, 2023 by Russ

Today is April 11th. The tax deadline is just seven days away. What happens if you wake up and it’s April 18, 2023, and you can’t file your tax? File an extension. Download Form 4868, make an estimate of what … Continue reading →

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Bozo Tax Tip #5: Publicize Your Tax Crimes on Social Media!

Posted on April 10, 2023 by Russ

Social media is really, really big these days. You can follow me on Twitter. I may even update my Facebook page one of these days. Of course, I’m not a tax criminal, and my posts hopefully add knowledge for others. … Continue reading →

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Bozo Tax Tip #6: The $0.63 Solution

Posted on April 7, 2023 by Russ

With Tax Day fast approaching it’s time to examine yet another Bozo method of courting disaster. And it doesn’t, on the surface, seem to be a Bozo method. After all, this organization has the motto, Neither rain nor snow nor … Continue reading →

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Bozo Tax Tip #7: Withhold, but Don’t Remit, Your Employment Taxes!

Posted on April 6, 2023 by Russ

This Bozo Tax Tip—and do remember, these are things you really, really, really shouldn’t try—is aimed at the business owner who is having troubles. Business owners, unlike the federal government, can’t just print money. So let’s assume our hypothetical business … Continue reading →

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