Author Archives: Russ

IRS Extends Deadlines for Those Impacted by Hurricane Florence

Posted on September 15, 2018 by Russ

Hurricane Florence is battering North and South Carolina. News reports indicate “biblical” amounts of rain will fall, with catastrophic flooding probable throughout the Carolinas. Today, the IRS announced that they are extending deadlines for those in the federal disaster zone … Continue reading →

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Can a Professional Gambler Take the Foreign Earned Income Exclusion?

Posted on September 15, 2018 by Russ

I was asked that question this past week: Can a professional gambler take the Foreign Earned Income Exclusion? The Exclusion allows one to exclude about $100,000 of income from income tax. The IRS website (which is quite good) has a … Continue reading →

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Regulations Matter, Too

Posted on September 10, 2018 by Russ

I used to have my office in Irvine, California. Today, like most days, the weather in Irvine will be absolutely gorgeous: A high of 79 and a low of 66. You can’t ask for better (weather) climate. How about the … Continue reading →

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Should I Violate Federal Law or State Law?

Posted on August 28, 2018 by Russ

Suppose you have a federal license to perform your occupation in your state of residence. That license allowed you to do [whatever it is you do] anywhere in the United States. Now, further suppose your state legislature passed a law … Continue reading →

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We’re Not Gonna Take It

Posted on August 23, 2018 by Russ

The IRS issued proposed regulations today on charitable contributions as it relates to state and local tax credits. Here’s a hint to politicians in Connecticut, New Jersey, and New York. The IRS is telling you: Here’s an excerpt from the … Continue reading →

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One Giant Step Forward for Security (Maybe), One Huge Step Backward for Representation

Posted on August 23, 2018 by Russ

If you are a tax professional who does any representation work, do I have news for you…and it’s not good. Yesterday, the IRS made an announcement about redacting information on transcripts. Here’s an excerpt of the announcement: Moving to better … Continue reading →

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When It’s Too Good to be True (Tax Shelter Edition)

Posted on August 21, 2018 by Russ

When reading Tax Court decisions, always be on the lookout for the word “scheme.” It’s usually a heads-up that what you’re reading isn’t going to cut it (from a tax perspective). So when the decision begins, These consolidated cases involve … Continue reading →

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Can You Spin Garbage Into Gold?

Posted on August 18, 2018 by Russ

I guess I’ll spoil the post: Rumpelstiltskin could spin straw into gold. Rumpelstiltskin, Inc. thought it could do the same for garbage, spinning it into tax credits. The Commissioner of the Internal Revenue Service disagreed. So did the Tax Court. … Continue reading →

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Return to Sender

Posted on July 24, 2018 by Russ

A client was selected for a correspondence audit; the IRS asked the client to submit all the documentation regarding a tax credit taken on a recent return. The client had all the documentation, made his photocopies, and mailed off the … Continue reading →

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We’re Not Gonna Take It…

Posted on July 21, 2018 by Russ

You may have heard that earlier this week four states sued to stop parts of the new tax law from going into effect. The states–New York, New Jersey, Connecticut, and Maryland–don’t like the new $10,000 cap on deducting state and … Continue reading →

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