Author Archives: Russ

IRS: Let’s Spend $5 (At Least) to Disallow $0.11

Posted on August 21, 2022 by Russ

When you file an amended return, you’re actually making a claim for refund.  Tax professionals have been filing (for their clients) amended payroll tax returns (Form 941) to obtain the Economic Recovery Credit (ERC).  I’ve done two (so far), and … Continue reading →

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Square Pegs and Round Holes: Tornado Cash, Anti-Money Laundering, and Crypto

Posted on August 17, 2022 by Russ

On August 8th, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) went after virtual currency “mixer” Tornado Cash.  Tornado Cash was sanctioned, and as the Treasury’s press release notes, As a result of today’s action, all … Continue reading →

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Answering to a Higher Authority

Posted on August 10, 2022 by Russ

Robert Brockman, the 2020 Tax Offender of the Year, passed away last weekend.  Mr. Brockman was facing a 39-count indictment for tax fraud and related charges; his trial was set for this coming February.  Mr. Brockman’s attorneys argued that he … Continue reading →

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Do IRS Employees Know the Postmark Rule?

Posted on July 22, 2022 by Russ

So what’s the postmark rule?  The IRS notes this on their website: Your return is considered filed on time if the envelope is properly addressed, has enough postage, is postmarked, and is deposited in the mail by the due date. … Continue reading →

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When Bad Recordkeeping Helps You (And Bad News for Some Canadian Professional Poker Players)

Posted on July 18, 2022 by Russ

As we previously reported, the Canada Revenue Agency (CRA) thought that Jonathan Duhamel, the winner of the Main Event of the World Series of Poker (WSOP) in 2010 was a professional gambler, and that he conducted himself as a professional … Continue reading →

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The Real Winners of the 2022 World Series of Poker

Posted on July 17, 2022 by Russ

Yesterday afternoon, the 2022 Main Event of the World Series of Poker concluded. First, congratulations to Caesars for putting on a mostly great series at the Paris and Bally’s casinos on the Strip. This was the first year the events … Continue reading →

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Is It One Penalty of $10,000 or Multiple Penalties of $10,000?

Posted on June 21, 2022 by Russ

Suppose you are a resident of a foreign country–say, Romania–and you have foreign financial accounts.  You need to file the FBAR (Report of Foreign Bank and Financial Accounts) to tell the Financial Crimes Enforcement Network (FINCEN) what foreign accounts you … Continue reading →

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Standard Mileage Rate Increases Beginning July 1st

Posted on June 9, 2022 by Russ

The IRS announced today that the standard mileage rate for the second half of 2022 will be $0.625/mile, up from $0.585/mile.  As the IRS notes: In recognition of recent gasoline price increases, the IRS made this special adjustment for the … Continue reading →

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Contributing to the IRS’s Paper Backlog

Posted on May 20, 2022 by Russ

A client of ours has filed Form 2553 three times to elect S-Corporation status.  The first time, his attorney sent the form to the IRS.  The second time, my client mailed the form (right before the pandemic began).  The third … Continue reading →

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Depressing

Posted on May 5, 2022 by Russ

TIGTA (the Treasury Inspector General for Tax Administration) came out this morning with its interim report on the 2022 Tax Filing Season.  I would love to report statistics that make me feel warm and fuzzy; instead, we’re left with more … Continue reading →

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