Author Archives: Russ

No Treat for Them

Posted on October 31, 2005 by Russ

The Tax Court delivered a trick on Halloween to these taxpayers. They operated a timber operation (perhaps), accounting services (although the husband was “…suspended from practice before the Internal Revenue Service since 1981”), real estate (although the wife asked, “[please] … Continue reading →

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“Please Tax Us,” Asks One Business

Posted on October 30, 2005 by Russ

You’re a successful business, with revenues over $1 million annually. Besides income taxes, your only regulatory fee is a $387 business license fee. The city you’re in proposes a 15% gross receipts tax (subject to voter approval on November 8th). … Continue reading →

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Berkshire Hathaway Wins One for the Big Guy

Posted on October 28, 2005 by Russ

Let’s say that your small corporation borrows some money. Let’s further suppose that you that that borrowed money and then purchased dividend paying stocks with that money. You can’t deduct those dividends. It’s considered a form of double-dipping, as you … Continue reading →

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A Humdrum Tax Opinion by the Next Supreme Court Justice?

Posted on October 28, 2005 by Russ

With the withdrawal of Harriet Miers as a nominee for the Supreme Court, speculation has centered on several individuals as a possible nominee, including Judge Michael McConnell. In this unpublished opinion, which is a model of brevity, Judge McConnell rejects … Continue reading →

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Saving Tax Returns, California-Style

Posted on October 25, 2005 by Russ

California currently has a four-year statute of limitations on income taxes, but no statute of limitations on collections of tax monies. As we previously noted, the Franchise Tax Board earlier this year sent out notices to taxpayers—asking for payments on … Continue reading →

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PayPal Record Subpeoned

Posted on October 22, 2005 by Russ

The IRS is attempting to find some foreign credit card holders who used PayPal to evade taxes. According to this story in the San Jose Mercury News, the IRS wants to find tax evaders who are using PayPal to illegally … Continue reading →

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Lingerie Madam Gets Year for Tax Fraud

Posted on October 22, 2005 by Russ

The alleged Palos Park Madam (of suburban Chicago) successfully dodged prostitution charges. But she was less successful in avoiding tax fraud charges and will soon spend a year in jail. Dawn Hansel had been accused in the past of everything … Continue reading →

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How to Imprison Yourself

Posted on October 22, 2005 by Russ

It’s simple. During sentencing for tax evasion, just question the judge’s credentials and the US government’s right to make you file a tax return. The judge involved, Walter Rice of Ohio, said it best, “Why are you doing this to … Continue reading →

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The Tax Reform Panel Speaks

Posted on October 22, 2005 by Russ

While I was off this past week, the Tax Reform Panel came out with two proposals that are similar. The two proposals would: 1. Eliminate state and local tax deductions for individuals. Given that a large percentage of the US … Continue reading →

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Vote Early and Often

Posted on October 15, 2005 by Russ

In just a few weeks, California voters will go to the polls to decide several key propositions. Among these are two that definitely could impact taxes: Propositions 76 and 77. Proposition 76 would impact California budgeting system. State spending would … Continue reading →

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