Author Archives: Russ

Do Not Blindly Pay IRS Notices, Reason ∞

Posted on March 20, 2017 by Russ

One of my clients angrily sent me a message today. She received an IRS Automated Underreporting Unit (AUR) notice alleging that she did not include $50,000 of W-2Gs on her 2015 tax return. She’s a professional gambler, so I looked … Continue reading →

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The Other March 15th Deadlines

Posted on March 15, 2017 by Russ

Today’s the deadline for filing partnership and S-Corporation returns. An extension is available by filing Form 7004. Most (but not all) states grant an automatic extension. Do realize that if your state charges a tax for your entity (i.e. New … Continue reading →

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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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