Author Archives: Russ

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 →

Posted in Tax Fraud | Tagged | Comments Off on Lingerie Madam Gets Year for Tax Fraud

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 →

Posted in Tax Evasion | Comments Off on How to Imprison Yourself

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 →

Posted in Legislation | Comments Off on The Tax Reform Panel Speaks

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 →

Posted in California | Comments Off on Vote Early and Often

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