Author Archives: Russ

An Interesting Gambling Tax Court Case

Posted on February 13, 2006 by Russ

The Tax Court today decided Castagnetta v. Commissioner (T.C. Summary 2006-24). The petitioner claimed that while working as a part-time truck driver that he was also a professional gambler, gambling on horse races in New York. The IRS challenged that, … Continue reading →

Posted in Gambling | 6 Comments

Crime Log: Nursing Homes Pay Well…

Posted on February 11, 2006 by Russ

…when you withhold taxes from employees and keep them. Crime does pay, as long until you get caught. Take nursing home owner Jack Easterday, formerly of Alameda, CA, and soon to be residing in a federal penitentiary. Mr. Easterday was … Continue reading →

Posted in Tax Fraud | 4 Comments

Dynamic Analysis Proposed by White House

Posted on February 11, 2006 by Russ

According to the Wall Street Journal, the 2007 budget has $513,000 allocated to set up a “dynamic analysis” unit within the Department of the Treasury. Currently, the Congressional Budget Office uses static analysis to determine the impact of proposed changes … Continue reading →

Posted in Legislation | 2 Comments

Crack Tax, Part Two

Posted on February 10, 2006 by Russ

The NAEA alerted me to a new act under consideration in my old home, Washington state. Acting on the success of the Tennessee Crack Tax, two legislators in Washington have introduced similar legislation. The act, if passed, would impose a … Continue reading →

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The Saga of Western Tax Service Draws to a Close

Posted on February 9, 2006 by Russ

Samuel Joseph DeAngelo headed Western Tax Service. It attracted tax clients quickly as it averaged $2,500 refunds for each customer. It’s techniques were certainly interesting, and come from the Richard Hatch School of Tax Preparers: – Making up false deductions … Continue reading →

Posted in Tax Fraud | Tagged | 3 Comments

Fast Food Litter Tax Passed in Oakland

Posted on February 9, 2006 by Russ

I have a few clients in Oakland. They’ll probably be paying a bit more for that Big Mac or other fast food; the Oakland City Council passed an ordinance Tuesday that imposes a fee of between $230 to $3,815 on … Continue reading →

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Criminal Update

Posted on February 9, 2006 by Russ

The tax evaders have been busy. First, a woman in Tullahoma, Tennessee successfully embezzled about $500,000. Only one problem: she forgot to pay her federal income tax on her ill-gotten gains. She pled guilty to four counts of tax evasion … Continue reading →

Posted in Tax Evasion | 1 Comment

Tax Reform Panel’s Recommendations DOA

Posted on February 9, 2006 by Russ

The Senate’s top Democratic tax writer declared that the Tax Reform Report issued last year is dead on arrival. “That thing’s dead. That’s dead, Mr. Secretary,” said Max Baucus, D-MT. When the panel’s recommendations came out last year, that’s exactly … Continue reading →

Posted in Legislation | 10 Comments

IRS Targets Share Lending

Posted on February 9, 2006 by Russ

According to this story [paid subscription required] in today’s Wall Street Journal, the IRS is targeting a technique used by highly paid individuals to defer capital gains taxes. The strategy is called “prepaid variable forward,” and is a hedging strategy … Continue reading →

Posted in IRS | 2 Comments

A Few More Brains than Hatch

Posted on February 8, 2006 by Russ

But it wouldn’t take much for that to be true. Danni Boatwright, the most recent Survivor champion, paid her taxes on the $1 million she won. “I paid them right away,” she told AP Radio. “(CBS) recommends that you pay … Continue reading →

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