Author Archives: Russ

Even Minor Celebrities Should Pay their Taxes

Posted on March 12, 2017 by Russ

I never saw Discovery’s “American Guns” reality show. The former owner of a store called “Gunsmoke” ran into trouble with both gun selling laws and filing tax returns. He’s likely heading to ClubFed. Richard Wyatt is the former owner of … Continue reading →

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Two too Many Sets of Books Leads to 41 Months at ClubFed

Posted on March 6, 2017 by Russ

I maintain one set of books for my business. It tells me my income, expenses, and balance sheet for the year. Owners of a Las Vegas liquor store decided that one set of books wasn’t enough and had three sets … Continue reading →

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Casinos and ITINs: IRS Confirms Cease and Desist Letters Sent to “Several Large Casinos” (Update #2)

Posted on March 3, 2017 by Russ

My stakeholder liaison at the IRS got back to me this morning and told me that the IRS has indeed sent letters to “several large casinos” ordering them to cease and desist issuing Individual Taxpayer Identification Numbers (ITINs). She was … Continue reading →

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The Hidden Bitcoin Trap: FBAR

Posted on February 26, 2017 by Russ

A lot of my clients have invested in Bitcoins. For those who aren’t aware Bitcoins are a “cryptocurrency.” For tax purposes, Bitcoins are treated like stocks and bonds; realized gains (and losses) are reported on Schedule D. And that’s everything … Continue reading →

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FTB Not Appealing Swart Decision

Posted on February 22, 2017 by Russ

Last month a California appellate court ruled that California’s Franchise Tax Board was wrong in trying to assess an Iowa corporation with a 0.2% ownership in an LLC that invested in California the California minimum Franchise Tax. It was announced … Continue reading →

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Online Gambling Addresses for 2017

Posted on February 20, 2017 by Russ

This list has been superceded by the 2018 list. With the United States v. Hom decision, we must again file an FBAR for foreign online gambling sites. An FBAR (Form 114) is required if your aggregate balance exceeds $10,000 at … Continue reading →

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Casinos and ITINs: Update #1

Posted on February 19, 2017 by Russ

On Monday I wrote about Las Vegas casinos receiving letters ordering them not to issue ITINs (Individual Taxpayer Identification Numbers). When I wrote the post, I knew of one major Las Vegas casino that had received this letter; I assumed … Continue reading →

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San Francisco Supervisors Want a Local Income Tax

Posted on February 19, 2017 by Russ

California is not a low-tax state. Thankfully for Californians, there are no local income taxes. However, that soon may change. Seven of the eleven members of the San Francisco Board of Supervisors [1] are sponsoring a measure that will ask … Continue reading →

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Casinos Can No Longer Issue ITINs

Posted on February 13, 2017 by Russ

Suppose you’re a resident of the United Kingdom and you come to Las Vegas to play in the World Series of Poker (WSOP) or just try your luck at a slot machine here. You have good luck and manage to … Continue reading →

Posted in Gambling, International | Tagged | 5 Comments

Consulting, Gambling; There’s No Difference, Right?

Posted on February 6, 2017 by Russ

The Tax Court looked at an individual (call him “Mr. A.”) who looked like a professional poker player, appeared to have an income from poker, but was described on his tax return as a “consultant.” His tax return showed less … Continue reading →

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