Author Archives: Russ

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

Pork

Posted on September 20, 2005 by Russ

With President Bush proposing (and Congress passing) extensive relief for Hurricane Katrina, and the possibility of perhaps another deadly strike by Hurricane Rita in Texas, one obvious question is how do we pay for this. I’ve seen estimates that the … Continue reading →

Posted in Legislation | 1 Comment

Did Your Estimated Payment End Up in the Bay?

Posted on September 19, 2005 by Russ

There are traffic accidents and then there are traffic accidents. A courier transporting approximately 30,000 1040-ES payments lost his load on the San Mateo Bridge…and the payments fell into the San Francisco Bay. The accident occurred on September 11th and … Continue reading →

Posted in IRS | 2 Comments

Hatch Pleads Not Guilty; Return Shopping?

Posted on September 19, 2005 by Russ

Survivor Richard Hatch pled not guilty today to charges that he didn’t report his $1 million in winnings from the reality television show, and charges of filing a false S-corporation tax return, mail fraud, wire fraud, and bank fraud. Hatch … Continue reading →

Posted in Tax Evasion | Tagged | Comments Off on Hatch Pleads Not Guilty; Return Shopping?

Congress Passes Katrina Tax Relief

Posted on September 15, 2005 by Russ

The House and Senate passed tax relief measures aimed at helping victims of Katrina, according to this story. Among the items in this legislation are: – Waivers of penalties for victims who tap into their retirement accounts; – Increased earned … Continue reading →

Posted in Katrina | 3 Comments

All Knowing, All Seeing…

Posted on September 13, 2005 by Russ

…so does he know his fate in court? “Caryville Psychic Accused of Tax Evasion” screams the headline. Hat tip: Roth Tax Updates

Posted in Tax Evasion | Comments Off on All Knowing, All Seeing…

Bozo Tax Preparer Strikes Out

Posted on September 13, 2005 by Russ

After noting the previous Tax Court Decision, I was a bit surprised to find the final case reported yesterday to be a whopper. Consider a “professional” tax preparer who doesn’t prepare his own tax return. The IRS discovers that the … Continue reading →

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Dummy Returns or A Dummy?

Posted on September 13, 2005 by Russ

Sometimes one must only look in the mirror to see who is the bozo. Yesterday, a taxpayer who didn’t file claimed that the IRS “…prepared only “dummy returns” for 2000 and 2001, and that respondent’s determination of his deficiencies in … Continue reading →

Posted in Tax Court | Comments Off on Dummy Returns or A Dummy?