Author Archives: Russ

Two From the Not Safe for Work Profession

Posted on August 24, 2008 by Russ

I’ve written in the past that there’s something about Escort Services that somehow get their owners in tax trouble. Late last week two other individuals in related industries pleaded guilty to tax evasion charges. First, from Eugene, Oregon, comes the … Continue reading →

Posted in Tax Evasion | Comments Off on Two From the Not Safe for Work Profession

Good Summary of Hyatt Case

Posted on August 20, 2008 by Russ

The Las Vegas Review-Journal has published an excellent summary of the Gilbert Hyatt case and judgments. Mark Hutchison, Mr. Hyatt’s lead attorney, believes that the Franchise Tax Board will appeal the case. (I agree with him that the case will … Continue reading →

Posted in California, Nevada | Tagged | Comments Off on Good Summary of Hyatt Case

This Week for the Budget? I Don’t Think So

Posted on August 19, 2008 by Russ

California Assembly Speaker Karen Bass told the Wall Street Journal that she expects to reach a budget compromise this week. I doubt it. The Democrats are still only arguing to increase taxes. Republicans in the Legislature vow that’s not going … Continue reading →

Posted in California | Comments Off on This Week for the Budget? I Don’t Think So

Takeout Is Taxable

Posted on August 19, 2008 by Russ

That seems obvious, right? You need to charge sales tax on items that are picked up. Hopefully it also seems obvious that if you’re a liquor store owner you need to include takeout items in your income. There’s no exemption … Continue reading →

Posted in Tax Fraud | Comments Off on Takeout Is Taxable

10 Years, 2 Cars, 4 Pieces of Property, and $2.7 Million

Posted on August 17, 2008 by Russ

Earlier this year I posted about a complex tax fraud case out of Salt Lake City. Several individuals were accused of helping various other individuals and businesses evade about $20 million in taxes. Three pleaded guilty. One of those who … Continue reading →

Posted in Tax Fraud | Comments Off on 10 Years, 2 Cars, 4 Pieces of Property, and $2.7 Million

$396.08 Million…and the Meter Is Still Running

Posted on August 17, 2008 by Russ

A Las Vegas jury told California’s Franchise Tax Board in no uncertain terms that the FTB’s conduct towards Gilbert Hyatt was reprehensible. I had speculated that the jury would award Mr. Hyatt $250 million in punitive damages; that was exactly … Continue reading →

Posted in California, Nevada | Tagged | Comments Off on $396.08 Million…and the Meter Is Still Running

Even Pot Growers Need to Pay their Taxes

Posted on August 13, 2008 by Russ

Medical marijuana is a complex subject. California voters passed an initiative legalizing it; the federal government says its still illegal under federal law. I’ll let the attorneys battle that one out. However, whether medical marijuana is legal or illegal doesn’t … Continue reading →

Posted in Tax Evasion | Comments Off on Even Pot Growers Need to Pay their Taxes

An Aphrodite Falls

Posted on August 13, 2008 by Russ

It must be something about the profession. Yet another Escort Service owner is in trouble over taxes. Theresa Faye Hope pleaded guilty to tax fraud charges today. Ms. Hope was the proprietor of Aphrodite Inc., a subchapter S Corporation. There’s … Continue reading →

Posted in Tax Evasion | Comments Off on An Aphrodite Falls

$146.88 Million and Counting

Posted on August 11, 2008 by Russ

Back in October 1991 Gilbert Hyatt moved from California to Nevada. California’s Franchise Tax Board didn’t think he did, so they commenced a residency audit. California determined that Mr. Hyatt didn’t establish residency in Nevada until April 1992. Normally, six … Continue reading →

Posted in California, Nevada | Tagged | Comments Off on $146.88 Million and Counting

A CFO and a CEO Find their Fates

Posted on August 10, 2008 by Russ

Two business executives. Two men with tax troubles. Is ClubFed in their futures? Joseph Smith was the former treasurer and CFO of the Catholic diocese of Cleveland, Ohio. He supplemented his earnings by engaging in a kickback scheme. He funneled … Continue reading →

Posted in Tax Evasion | Comments Off on A CFO and a CEO Find their Fates