Author Archives: Russ

$28 Million in Tax Fraud Gets Preprarer 6 Years at ClubFed

Posted on February 14, 2011 by Russ

Lester Morrison had a great business going. His “Tax Prep” (also called “24 Hour Income Tax Refund Service”) was doing a bang-up business in the Bronx and across the river in New Jersey. Their clients were quite pleased with their … Continue reading →

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No Valentine’s Love from the IRS

Posted on February 14, 2011 by Russ

When the IRS announced that they will begin accepting all tax returns for processing on February 14th, I called it a bit of Valentine’s love. No more, though. I received a notification from my software vendor that the IRS will … Continue reading →

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Gilbert Hyatt and the FTB (An Update)

Posted on February 11, 2011 by Russ

When last I reported on the Gilbert Hyatt case, Mr. Hyatt had won nearly $400,000,000 (yes, that’s $400 million) in a lawsuit from the Franchise Tax Board. This case began when Mr. Hyatt moved from California to Nevada in 1992, … Continue reading →

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Unlearning the Income Tax: Another Journey to Frivolity

Posted on February 8, 2011 by Russ

About once a year I decide to post about the newest Bozo scheme to get out of the income tax. It’s that time again: Today, we learn about the Institute for Unlearning. Yes, that’s a real website and its proprietor, … Continue reading →

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Two Casino Chip Theft Cases, Two Arrests (Illegal Income Primer)

Posted on February 8, 2011 by Russ

When I learned math, I learned that 1 times any number is that other number, and that 0 times any number is 0. So if I steal 400,000,000,000 play money poker chips (each can be converted to absolutely nothing), I’ve … Continue reading →

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Wellek Gets 1 Year at ClubFed

Posted on February 7, 2011 by Russ

There’s something about strip clubs that make them go hand-in-hand with tax evasion. Michael Wellek owned three such clubs in the Chicagoland area. Back in 2003, the IRS seized $12 million from a warehouse owned by Mr. Wellek. And that’s … Continue reading →

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California Cap and Tax Hits a Snag

Posted on February 7, 2011 by Russ

Last November, California voters refused to overturn AB32. That misguided legislation imposed climate change as gospel and gave the California Air Resources Board a mandate to stop ‘global warming.’ Coincidentally, last fall CARB implemented a ‘cap and trade’ system for … Continue reading →

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California Disclosure Obligations

Posted on February 5, 2011 by Russ

There are rules regarding reporting a reportable transaction (including a listed transaction) to the IRS. The Franchise Tax Board wants to get the word out that there are rules about reporting such items to the FTB, too. This impacts both … Continue reading →

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How to be a Receptionist Without Trying at All

Posted on February 4, 2011 by Russ

I’m happy doing what I do. As my brother says, someone’s got to enjoy preparing tax returns. One thing that I’m not, though, is a receptionist. Neither is one Bakersfield woman. However, Bakersfield tax preparer Bertha Vaughn listed her as … Continue reading →

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ObamaCare Unconstitutional; Impact on Taxes?

Posted on February 1, 2011 by Russ

As most of you know, a second federal court judge has ruled the Health Care Law that passed last year is unconstitutional. Judge Rodger Vinson didn’t just rule that the mandate that health insurance must be bought is stricken; rather, … Continue reading →

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