Author Archives: Russ

Nevada Wises Up on Exempt Commerce Tax Companies

Posted on June 25, 2019 by Russ

Nevada has a tax on businesses called the “Commerce Tax.” This tax impacts businesses with gross receipts of $4 million or more. If your Nevada business makes less than that, you don’t owe the tax. However, you still had to … Continue reading →

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Arizona v. California Update

Posted on June 24, 2019 by Russ

The State of Arizona has asked the US Supreme Court to stop California’s illegal (in Arizona’s view) scheme of requiring indirect passive owners of LLCs who happen to own other LLCs that invest in California from paying California’s minimum $800 … Continue reading →

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Should a Taxpayer be Liable for Tax on Income She Didn’t Receive?

Posted on June 22, 2019 by Russ

Not even the IRS could go after someone for income they didn’t receive, right? Well, wrong. And when the taxpayer filed a lawsuit to reverse the result, she lost. She appealed to the Eleventh Circuit where the Court had a … Continue reading →

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IRS To New York, New Jersey, and California: We Weren’t Kidding

Posted on June 11, 2019 by Russ

Today the IRS issued rules and guidance on charitable contributions as a workaround to the new limits on state and local taxes. Unsurprisingly, the IRS said exactly what I thought they would: both substance over form and quid pro quo … Continue reading →

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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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