Author Archives: Russ

A Penny Saved Leads to Tax Court

Posted on October 11, 2005 by Russ

Well, 48 pennies. Most tax software rounds off numbers to whole dollars. Indeed, the IRS suggests taxpayers do this in their instructions to Form 1040: “You may round off cents to whole dollars on your return and schedules. If you … Continue reading →

Posted in IRS, Tax Court | Comments Off on A Penny Saved Leads to Tax Court

California Conforms, Sort Of

Posted on October 11, 2005 by Russ

The Federal Tax Code is complicated enough. As a practicing tax professional in California, it would be nice if California conformed to the Federal Code. On Friday, Governor Schwarzenegger signed AB 115, putting California into conformity with more of the … Continue reading →

Posted in California | Comments Off on California Conforms, Sort Of

Adelphia Founder Indicted on Tax Evasion Charges

Posted on October 7, 2005 by Russ

John Rigas, founder of Adelphia Communications, and his son Timothy, were indicted on tax evasion charges. According to this article, they diverted $1.85 billion for their personal use from Adelphia. The pair has already been found guilty of fraud and … Continue reading →

Posted in Tax Evasion | 4 Comments

New IRS Form 944 for Very Small Businesses to Replace Form 941

Posted on October 5, 2005 by Russ

For the very small business owner, the IRS will introduce in 2006 a new form, Form 944. You can view a draft version of the form here. The new form is for businesses who pay $1,000 or less in employment … Continue reading →

Posted in IRS | Comments Off on New IRS Form 944 for Very Small Businesses to Replace Form 941

Bowling for Dollars

Posted on October 5, 2005 by Russ

I remember watching the television show Bowling for Dollars. Chick Hearn, the late Los Angeles Lakers broadcaster, was the host. Contestants bowled a couple of frames and got paid small cash prizes based on how well they did. Charles Lanza, … Continue reading →

Posted in Tax Fraud | Comments Off on Bowling for Dollars

Offshore Shenanigans

Posted on September 30, 2005 by Russ

A company called Derivium Capital LLC is under investigation by the IRS and the Franchise Tax Board for making loans that allegedly weren’t loans, according to Forbes. The scheme aided taxpayers who were sitting on large stock gains. According to … Continue reading →

Posted in Tax Fraud | 1 Comment

Contumacious Conduct

Posted on September 29, 2005 by Russ

What happens when you battle the IRS in Tax Court, but lose? You have to pay what you owe. If you don’t, you can face a lien or levy. Today, the Tax Court stepped in when a one-time loser became … Continue reading →

Posted in Tax Court | Comments Off on Contumacious Conduct

Pork Aid

Posted on September 25, 2005 by Russ

According to this story, Louisiana’s senators have asked for $250 billion in aid solely for the state of Louisiana. That’s an interesting number given that current estimate of damage is $200 billion. The proposed relief package includes obvious pork, such … Continue reading →

Posted in Katrina | 6 Comments

When You Don’t Withhold….

Posted on September 21, 2005 by Russ

Harrah’s Entertainment, the big casino conglomerate, apparently forgot to withhold from about 400 winners (mainly Canadians) at this year’s World Series of Poker®. Harrah’s is now “making up” for this by not allowing these players to play in another poker … Continue reading →

Posted in Gambling | Comments Off on When You Don’t Withhold….

Circular Funding Doesn’t Work

Posted on September 20, 2005 by Russ

When an S corporation has a loss, the loss flows through to its’ shareholders. But shareholders can only take the loss if they have a basis in the corporation; the basis is (in general) the shareholder’s share of the profits … Continue reading →

Posted in Tax Court | Comments Off on Circular Funding Doesn’t Work