Author Archives: Russ

Tax Lady in Court

Posted on June 19, 2011 by Russ

“Tax Lady” Roni Deutch appeared in court on Friday; she pleaded not guilty to contempt of court charges in Sacramento. She’s accused of violating court orders by shredding 2.7 million documents in violation of a court order. Meanwhile, the company … Continue reading →

Posted in Tax Evasion | Tagged | 1 Comment

Blogroll Updated

Posted on June 19, 2011 by Russ

It’s been a while since I’ve proofed my blogroll, and I’ve been negligent in adding some well-deserving blogs and pruning some deadwood. Taxdood publishes “Taxes in the Back.” A New York-based attorney, he focuses on gambling, international issues, and other … Continue reading →

Posted in Taxable Talk | Comments Off on Blogroll Updated

Partisan Budget Passed by Democrats, Vetoed by Gov. Brown

Posted on June 17, 2011 by Russ

In the latest episode of As the Budget Churns, last night Democrats in the California legislature passed a budget but received no Republican votes for it. The budget that passed was typical for the last few years: Full of gimmicks … Continue reading →

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Son of FBAR Now Looks Uglier for 2012

Posted on June 15, 2011 by Russ

The IRS posted a revised draft of Form 8938, the “Son of FBAR.” I’d normally note the highlights; however, in this case let’s look at the lowlights: First, the form is far more extensive than the original draft. Let’s assume … Continue reading →

Posted in IRS | Tagged | 3 Comments

Is a Taxpayer Liable for the Accuracy Penalty When a Preparer Omits a 1099?

Posted on June 14, 2011 by Russ

Everyone is human. Sometimes we forget that 1099 on the tax return. Today, the Tax Court looked at a case where a tax professional omitted just one 1099. The problem was that this 1099 represented $3.4 million of income, and … Continue reading →

Posted in Tax Court | 1 Comment

If It’s Not in Print…

Posted on June 14, 2011 by Russ

Today, the US Tax Court looked at the case of a citizen of South Korea, and his gambling. The petitioner argued that the Korea – US Treaty of Friendship, Commerce, and Navigation exempts gambling income; alternatively, that the gambling income … Continue reading →

Posted in Gambling | 1 Comment

Phony Liens, Real Jail

Posted on June 9, 2011 by Russ

Here’s a strategy that’s guaranteed to endear yourself to the IRS and other officials at the federal government. First, get yourself in trouble with the SEC. Thanh Viet Jeremy Cao of nearby Rancho Santa Margarita did just that: He was … Continue reading →

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No Sniping at the Supreme Court

Posted on June 7, 2011 by Russ

The Supreme Court denied Wesley Snipes’ appeal today. Wesley Snipes will likely remain in prison until 2013 on his failure to file tax return charges. The Supreme Court rarely hears tax charges, and there really wasn’t either some novel issue … Continue reading →

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Tax Amenesty in Colorado this Fall

Posted on June 4, 2011 by Russ

Colorado Governor John Hickenlooper signed a bill authorizing a tax amnesty in Colorado. The amnesty period will be from October 1st to November 15th. It applies to any tax debt owed as of December 31, 2010. Additionally, if the Colorado … Continue reading →

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You Mean I Have to Pay Tax on my Embezzlement Proceeds?

Posted on June 4, 2011 by Russ

Yes, illegal income is just as taxable as legal income. If you embezzle funds you have to report that income as “Other Income” on line 21 of Form 1040. Eugene Ceriello discovered this reality. Mr. Ceriello ran the back-office operation … Continue reading →

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