Author Archives: Russ

Arizona vs. California Franchise Tax Board

Posted on June 10, 2019 by Russ

Legal authorities in the Grand Canyon State are not amused by California’s view that indirect interests in California LLCs mean that the entities are doing business in California. And they’re mad enough to take action, asking leave to sue California … Continue reading →

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IRS No Longer Redacting Information on Wage & Income Transcripts

Posted on May 31, 2019 by Russ

Yesterday I went on e-Services and downloaded a Wage & Income Transcript for a client. I was surprised to see that the payor information was no longer redacted. There was the payor’s name in full (along with the address and … Continue reading →

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WSOP and Taxes: 2019 Non-Update

Posted on May 28, 2019 by Russ

The 50th World Series of Poker begins today at the Rio Hotel and Casino here in Las Vegas. Good luck to all those who are participating this year. Regarding taxes and the WSOP, nothing has changed from 2018. Thus, you … Continue reading →

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Derailed

Posted on May 17, 2019 by Russ

California’s “Train to Nowhere,” the alleged high-speed rail that would link San Francisco and Los Angeles (originally), and, now, the thriving metropolises of Shafter (just north of Bakersfield) and Merced is in deep trouble. Well, it has been in deep … Continue reading →

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Can I Disclose a Candidate’s Tax Returns?

Posted on May 12, 2019 by Russ

Let’s say that back in 2010 I prepared the federal and California tax returns for John and Mary Smith of Irvine, California. Ten years later, Mr. Smith decides to run for statewide office. Let’s further assume I abhor Mr. Smith’s … Continue reading →

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The 2019 Tax Season (Part 1): A Miserable Year

Posted on April 30, 2019 by Russ

This is my 19th year as a tax professional. By far, this past Tax Season was the worst of the nineteen I’ve experienced. Why? Well, there were a multitude of reasons. First, I had a personal issue that impacted my … Continue reading →

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Bozo Tax Tip #1: We Don’t Need No Stinkin’ Basis

Posted on April 12, 2019 by Russ

If there’s one issue in tax that tax professionals have trouble explaining to clients it’s basis. Your basis in an entity is, generally, the total of your investment in an entity plus income it generated less any distributions from it. … Continue reading →

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Bozo Tax Tip #2: We Don’t Need No Stinkin’ Employees (Especially Because We’re Lawyers)

Posted on April 11, 2019 by Russ

A few years ago, I first heard about the law firm that had no employees. Now, I can imagine a small firm of, say, three or four partners, with no clerical staff as a possibility. However, having dealt with enough … Continue reading →

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Bozo Tax Tip #3: Only Income Earned Outside the US Is Taxable

Posted on April 10, 2019 by Russ

A few days ago I was explaining to a client the basics of the US Tax Code: All income is taxable unless Congress exempts it; nothing is deducible unless Congress allows it. That’s the basics. My office is in Las … Continue reading →

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Bozo Tax Tip #4: The $0.55 Solution

Posted on April 9, 2019 by Russ

With Tax Day fast approaching it’s time to examine yet another Bozo method of courting disaster. And it doesn’t, on the surface, seem to be a Bozo method. After all, this organization has the motto, Neither rain nor snow nor … Continue reading →

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