Author Archives: Russ

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 →

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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 →

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$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 →

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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 →

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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 →

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$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 →

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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 →

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A Very Unlucky Spendthrift Lottery Winner

Posted on August 10, 2008 by Russ

If you are lucky enough to win the lottery definitely plan on paying your taxes. Indeed, you’ll find that the government will be quite helpful in that regard, and that taxes will be withheld from your winnings. Do remember, though, … Continue reading →

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Troutman Pleads Guilty

Posted on August 10, 2008 by Russ

When I was growing up just north of Chicago my parents told me about how the dead voted. That didn’t seem right to me, but I did learn at a young age about Chicago politics. Last year I reported that … Continue reading →

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Snipes’ Bill: $217,363.75

Posted on August 10, 2008 by Russ

Wesley Snipes recently got clearance to go overseas to film a movie while waiting for his appeal to be heard. It looks like he’ll need some of the money he’s making: he just received the bill for his trial. As … Continue reading →

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