Author Archives: Russ

“California — Toxic for Business”

Posted on November 15, 2011 by Russ

Wendell Cox and Steve Malanga penned an op-ed in the Los Angeles Times that’s worth your perusal. They argue what I’ve been saying for some time: “Unless Sacramento moves to improve the business climate, California’s reputation as one of the … Continue reading →

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The Secret Decoder Ring Strikes Again!

Posted on November 15, 2011 by Russ

I’ve written about Sharon Kukhahn before. Ms. Kukhahn thought that there was some magical way to decode your IRS file and magically make your taxes disappear! Ms. Kukhahn sold her packages to the public and pocketed $2,000 – $3,000 per … Continue reading →

Posted in Scams, Tax Fraud | 1 Comment

California Revenues Continue Below Budget

Posted on November 11, 2011 by Russ

October is usually a good month for California collections (of taxes). After all, it’s the extension deadline and many residents send more money to Sacramento. This month, though, revenues were $810 million below budget; the deficit year to date is … Continue reading →

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The Real Winners of the 2011 World Series of Poker

Posted on November 9, 2011 by Russ

Nine individuals came to Las Vegas this past weekend to compete for the championship at the World Series of Poker. Who would be the lucky winner? And who really got to keep the money? This year’s World Series of Poker … Continue reading →

Posted in Gambling | 12 Comments

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 →

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“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 →

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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 →

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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 →

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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 →

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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 →

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