Author Archives: Russ

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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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 →

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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 →

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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 →

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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 →

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Possible Problem With IRS Coding of Rejected Tax Payments

Posted on October 20, 2011 by Russ

If you are a tax professional and have recently had a client (or clients) whose IRS payment shows as rejected on Form 9325, it is possible that the payment actually went through. When an individual files his tax return electronically, … Continue reading →

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Recharacterization Deadline for Roth IRAs is October 17th

Posted on October 11, 2011 by Russ

Many individuals converted their traditional IRA to a Roth IRA in 2010. It seemed like a great idea but then the stock market went down. Now, some of these individuals owe tax on money they no longer have. You can … Continue reading →

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Sometimes the Light at the End of the Tunnel Is an Oncoming Train

Posted on October 11, 2011 by Russ

September revenue in California came in at a bit more than $300 million under forecast. That brings the fiscal year to somewhere between $700 and $800 million below forecast. (The California Controller’s office and the California Finance Department use slightly … Continue reading →

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