Author Archives: Russ

Cash and Carry Didn’t Work

Posted on July 23, 2011 by Russ

There’s nothing wrong with paying employees in cash. Indeed, in some industries it’s the norm. However, you still must withhold payroll taxes and properly report the earnings. The owners of a Massachusetts temporary agency found that out this week. Michael … Continue reading →

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Foreign Money Service Businesses May Need to Register with FINCEN

Posted on July 23, 2011 by Russ

Consider a foreign company that takes in, via wire transfers or other bank transfers, money from Americans. This company is located in, say, Costa Rica. Under new regulations published this week in the Federal Register, that company must register with … Continue reading →

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Electronic Filing Now Available for FBAR

Posted on July 23, 2011 by Russ

The Financial Crimes Enforcement Network (FINCEN) announced this week that you can now file an FBAR (Form TD F 90-22.1) electronically. Electronic filing of an FBAR is different than electronic filing for a tax return. You must complete an application, … Continue reading →

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Liening the Wrong Way

Posted on July 19, 2011 by Russ

Liens are useful legal devices. They are rightly used when someone owes another party money, so that property or other collateral is attached. Of course, if there’s a right way there’s also a wrong way. Today, we’re going to look … Continue reading →

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No Records and Other Issues Lead to a “Pro” Being an Amateur

Posted on July 19, 2011 by Russ

The Tax Court had to decide whether or not another individual was a professional gambler. On his return, he included his gambling winnings on a Schedule C (like a professional gambler). But was he truly a professional or was he … Continue reading →

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Club Fed Is the Rule for Ja Rule

Posted on July 19, 2011 by Russ

Back in March I reported on rapper Jeffrey Atkins (aka Ja Rule). He decided that it was a good idea if his after tax income was the same as his before tax income. Given that the tax loss to the … Continue reading →

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Illinois Increased Taxes But Is Still Broke

Posted on July 18, 2011 by Russ

You are insolvent when the money you owe (your liabilities) are more than the money you have (your assets). Illinois has been in desperate financial trouble for some time; this won’t be news to readers of this blog. Earlier this … Continue reading →

Posted in Illinois | 1 Comment

I Hope You Enjoyed that $2.4 Million

Posted on July 18, 2011 by Russ

I’ve said this before, and I’m certain I’ll say it again: If you want to get in trouble with the IRS, the fastest way to do so is to not remit your federal employment taxes. These are called trust fund … Continue reading →

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New York $1.2 Million, Indians 0

Posted on July 18, 2011 by Russ

I may be a baseball fan, but this post has nothing to do with the Cleveland Indians. Rather, here’s the latest chapter in New York’s war against Indian tribes selling cigarettes. In June, a New York Appellate Court lifted an … Continue reading →

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IRS Philadelpia Service Center Has Moved

Posted on July 14, 2011 by Russ

In a phone call today with the Taxpayer Advocate in Philadelphia, I learned that the IRS Service Center in Philadelphia moved, with the final personnel moving into the “new” office in January. The new address is: Internal Revenue Service 2970 … Continue reading →

Posted in IRS | 2 Comments