Author Archives: Russ

Louisiana Loves Gamblers

Posted on February 15, 2008 by Russ

And that’s not a good thing. Assume you’re an amateur gambler. You add up your winning and losing sessions for the year, and find that you have $150,000 of wins and $100,000 of losses. You get to deduct the $100,000 … Continue reading →

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Taxing the Virtual World

Posted on February 14, 2008 by Russ

Let’s suppose you’re playing an online role playing game such as Second Life. You’ve accumulated quite a bit of virtual property, and have a stash of virtual money. James Doe offers you $5,000 for your virtual money and virtual property—that’s … Continue reading →

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Strawberry Settles

Posted on February 13, 2008 by Russ

Darryl Strawberry, the former major league baseball player, has been in lots of trouble over his life. He’s battled drugs, cancer, ex-wives, and baseball players. Today he agreed to settle a tax dispute with the IRS. Back in 1995 Darryl … Continue reading →

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“The Tax Court Is Frivolous!”

Posted on February 13, 2008 by Russ

You have a small dispute with the IRS. The IRS alleges that you owe $554 and $1142 for the two years in question. You elect to file a Tax Court petition. When most people go to Tax Court, they work … Continue reading →

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California to Mandate Gender/Orientation Reporting for Non-Profits?

Posted on February 13, 2008 by Russ

Apparently some of our legislators are unhappy with California’s low ranking as a place to do business. They’d like to make this just as bad a place for non-profits. AB624 would require foundations and non-profits in California to collect gender, … Continue reading →

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Register Tax Help Call-In on Tuesday

Posted on February 11, 2008 by Russ

Every year the Orange County chapter of the California Society of Enrolled Agents and local CPAs donate their time to answer tax questions by phone for four hours. Tomorrow (Tuesday) you can call 714-796-5000 between 5pm and 9pm PST and … Continue reading →

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Another Bozo Tax Preparer Caught

Posted on February 10, 2008 by Russ

Anthony Pendleton ran Payless Tax Services of Inglewood, California. Mr. Pendleton allegedly had an interesting way to ensure that his clients got refunds: He allegedly invented employers for his clients, generated phony W-2s, and fabricated educational expenses. It’s a trifecta … Continue reading →

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Wesley Snipes in Tax Trouble…Again

Posted on February 10, 2008 by Russ

Right after Wesley Snipes found out that he’ll be sentenced on April 24th, news came out that Wesley Snipes owes $70,000 in back property taxes for his home in Alpine, New Jersey (in suburban Bergen County). The home is in … Continue reading →

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The New Standard for Preparers

Posted on February 10, 2008 by Russ

In years past, if I took a position on a tax return it needed “Substantial authority.” That’s equivalent to about a 30% chance of being upheld. Congress changed the law; now in order for me to take a position it … Continue reading →

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Sweden Goes After Poker Players

Posted on February 6, 2008 by Russ

The Swedish tax agency, Skatteverket, is targeting online poker players and affiliates. Skatteverket uses an online “spider,” or web crawler, to find web sites that appear to be income producing. They then investigate to see if they’ve reported income and/or … Continue reading →

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