Author Archives: Russ

IRS: DFS Sites Liable for Excise Tax on Wagering

Posted on August 13, 2020 by Russ

Back in 2015, I asked and answered the question on whether the DFS sites were liable for the excise tax on wagering. I came to the conclusion they were. In late July, the IRS came to the same conclusion: DFS … Continue reading →

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Charitable Organizations and the Election

Posted on August 13, 2020 by Russ

Unless you’re hiding under a rock you know that in less than three months there will be an election for President (and many other offices). EideBailly has a timely reminder today that a 501(c)(3) organization (a charitable organization) cannot support … Continue reading →

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How High Is Too High?

Posted on August 4, 2020 by Russ

California, like many states, has financial difficulties because of the Covid pandemic. So is the legislature looking at cutting spending? A little. How about raising taxes? Definitely, especially on the rich. California’s top marginal tax rate today is 13.3% (on … Continue reading →

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Signed, Mickey Mouse

Posted on July 31, 2020 by Russ

The General Treasurer of Rhode Island is Seth Magaziner. When the state pays its bills, his signature (along with that of State Controller Peter Keenan) appears on the checks that are issued. Imagine the surprise when some business owners received … Continue reading →

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Taking Some Bites Out of Tax Crime

Posted on July 25, 2020 by Russ

Many cities have cuisines that they are noted for. New Orleans is famous for the excellent Cajun food. I think of seafood and lobster with Boston. And cheesesteaks–a mixture of chopped steak with grilled onions and cheese on a roll–goes … Continue reading →

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Phony Donations Yield Real Tax Evasion and Tax Fraud

Posted on July 23, 2020 by Russ

Have I got a deal for you! You can give me a donation of, say, $500,000, and I’ll give you $450,000 back! Yet get a write-off on your tax return for all $500,000 but you really only spent $50,000. Isn’t … Continue reading →

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Bozo Tax Tip #1: Move Without Moving!

Posted on July 13, 2020 by Russ

Nearly nine years ago, we moved from Irvine, California to Las Vegas. The home in Irvine was sold, a home was purchased in Las Vegas, and the belongings went from the Golden State to the Silver State. Cars were re-registered, … Continue reading →

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Bozo Tax Tip #2: They Shoot Jaywalkers, Don’t They?

Posted on July 12, 2020 by Russ

I have, unfortunately, become quite competent in the Report of Foreign Bank and Financial Accounts. That form is better known as the FBAR. It used to have the form number TD F 90-22.1 (yes, it really did) but now goes … Continue reading →

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Bozo Tax Tip #3: Lie to Your Tax Professional

Posted on July 10, 2020 by Russ

Like almost all tax professionals, we use an Engagement Letter. The Engagement Letter has grown from one page to three pages. Some of this relates to items that my attorney wants on the document; some of the growth is from … Continue reading →

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Bozo Tax Tip #4: Procrastinate!

Posted on July 9, 2020 by Russ

Today is July 10th. The tax deadline is just five days away. What happens if you wake up and it’s July 15, 2020, and you can’t file your tax? File an extension. Download Form 4868, make an estimate of what … Continue reading →

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