Author Archives: Russ

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

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 →

Posted in IRS | Comments Off on Possible Problem With IRS Coding of Rejected Tax Payments

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 →

Posted in IRS | Tagged , | 2 Comments

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 →

Posted in California | Tagged | Comments Off on Sometimes the Light at the End of the Tunnel Is an Oncoming Train

Former NFL Player Sacked for Evasion

Posted on October 10, 2011 by Russ

Jeffrey Lynn Walker played three seasons in the NFL in the 1980s with the San Diego Chargers and the New Orleans Saints. Mr. Walker was an offensive lineman, so he was trying to make holes for the offense. After his … Continue reading →

Posted in Tax Evasion | Comments Off on Former NFL Player Sacked for Evasion

Bad News for Medical Marijuana

Posted on October 7, 2011 by Russ

Yesterday the Associated Press reported that US Attorneys in California have sent letters ordering medical marijuana dispensaries to close. The problem is that while medical marijuana use in California is legal under state law, marijuana remains illegal under federal law. … Continue reading →

Posted in IRS | 1 Comment

Four Weeks of Freedom Could Cost Ten Years at ClubFed

Posted on October 3, 2011 by Russ

I’ve reported on Tony and Micaela Dutson before. The couple, who were nominated for my prestigious Tax Offender of the Year award (but did not win in 2010), apparently wanted to try again in 2011. Back In June 2010 I … Continue reading →

Posted in Tax Evasion | Tagged | 2 Comments