Author Archives: Russ

Labor Day Payroll Tax Fraud

Posted on September 1, 2008 by Russ

I’ve said this before but it bears repeating—especially on Labor Day. If you want to get in trouble with the IRS either withhold payroll taxes and don’t remit them to the IRS or pay your employees under the table (thus … Continue reading →

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UCI Identity Theft Leads to Texas

Posted on September 1, 2008 by Russ

Earlier this year officials at the nearby University of California, Irvine announced that about 1,100 student identities were stolen by Texas-based United Healthcare. Now several individuals have been indicted for filing phony tax returns using these students identities (and others). … Continue reading →

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Interest Rate Changes

Posted on September 1, 2008 by Russ

While interest on underpayments to the IRS will increase to 6% from 5% in the third quarter, interest on underpayments to California will fall from 7% to 5% as of January 1st. Corporate underpayment interest in California will fall from … Continue reading →

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No Progress on the California Budget Front

Posted on September 1, 2008 by Russ

Another week and there’s absolutely no progress on the California budget front. Republicans won’t vote for anything with a tax increase and Democrats won’t vote for anything without a tax increase. The latest Republican proposal (which has major budget cuts … Continue reading →

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IRS Suspends ISO AMT Through September 30th

Posted on September 1, 2008 by Russ

The IRS announced last week that they would suspend collection of the Alternative Minimum Tax (AMT) on incentive stock options (ISOs) through September 30th. Senator Charles Grassley (R-IA) believes that legislation will clear Congress by month-end to reduce the tax … Continue reading →

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Three Years for Abject Stupidity

Posted on August 27, 2008 by Russ

Back in April I reported on Martha Vernon and her daughter Tiffany Dunbar. The team engaged in perhaps the stupidest Bozo scheme a tax preparer could: They stole names and social security numbers from her employer, invented a phony W-2 … Continue reading →

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The Mortgage That Wasn’t

Posted on August 27, 2008 by Russ

Most of us have mortgages on our homes. Joe Kristan has an excellent write-up on a Tax Court case decided yesterday, where the petitioners had a mortgage, but: – They recorded the mortgage the morning of the trial; – They … Continue reading →

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An Exit Tax and a Wealth Tax for Californians?

Posted on August 25, 2008 by Russ

An activist is now attempting to obtain 694,354 signatures to place a wealth tax/California exit tax on the 2010 ballot. This initiative would: – Impose a one-time tax of 55% on property exceeding $20 million of a California resident or … Continue reading →

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Decoding Some Bozos

Posted on August 24, 2008 by Russ

It was a busy week for the bozo side of the tax profession. Three preparers found themselves in hot water, and in one case some customers will be decoded into the mess. First, from Beaufort, South Carolina, Sally Berry, the … Continue reading →

Posted in Tax Evasion | 1 Comment

Fake Priest Had False Returns

Posted on August 24, 2008 by Russ

Earl Wolfe was an unlicensed architect in Jupiter Farms, Florida. That’s one crime in itself. He earned around $750,000 but reported only $600 on his tax returns. The IRS and Department of Justice weren’t appreciative of his efforts, and he … Continue reading →

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