Author Archives: Russ

Dotting the I’s and Crossing the T’s

Posted on July 17, 2016 by Russ

Assume there’s a California LLC filing its final tax return, and it is owed a refund of (say) $900. You timely file the return and are surprised when you receive a check for $100 rather than $900. What happened? Years … Continue reading →

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Is Cost of Goods Sold Included in the Calculation of the LLC Fee for a California LLC in Real Estate?

Posted on July 14, 2016 by Russ

The Franchise Tax Board, California’s income tax agency, today issued a legal opinion on how to calculate the Limited Liability Company (LLC) fee for a real estate company selling real property. This is an important issue because if Cost of … Continue reading →

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Can a Non-Tax Treaty Country Resident Obtain a Refund of Gambling Withholding from the IRS?

Posted on July 10, 2016 by Russ

Every year during the World Series of Poker (WSOP) I receive several inquiries like the following: I’m a resident of Brazil and I cashed in an event at the WSOP and won $100,000 (net). The Rio withheld 30% of that … Continue reading →

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IRS Transcript Delivery System Down this Weekend

Posted on June 30, 2016 by Russ

The IRS’s Transcript Delivery System (TDS) will be down tomorrow beginning at 12:01am, and will not come back up until Tuesday morning. The IRS announcement indicates they will be performing maintenance during this period. TDS is supposed to be back … Continue reading →

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The Self-Employment Tax While Employed???

Posted on June 28, 2016 by Russ

One of my clients was quite upset this morning. She had received an IRS Automated Underreporting Unit (AUR) notice alleging that she owed about $4,000 in additional tax. She sent me a copy of the notice and I looked at … Continue reading →

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A Train to Nowhere

Posted on June 22, 2016 by Russ

I haven’t posted on California’s bullet train in some time (I’m no longer a resident of the Bronze Golden State), but it’s time to once more post about the train to nowhere. In theory, this train will connect Los Angeles … Continue reading →

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FBAR Deadline Approaches

Posted on June 20, 2016 by Russ

Ten days from today is June 30th. That’s the deadline for filing Form 114, the Report of Foreign Bank and Financial Accounts (the “FBAR”). There are no extensions available. The FBAR is a report. There is no tax to pay. … Continue reading →

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Identity Thief Gets 17 1/2 Years

Posted on June 12, 2016 by Russ

Frantz Pierre, formerly of Parkland, Florida but soon to be residing at ClubFed, was sentenced last week to 210 months at ClubFed and must make restitution of $906,556. What did he do? I’ll let the Department of Justice press release … Continue reading →

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Why You Use Certified Mail

Posted on June 12, 2016 by Russ

A client was in IRS Appeals contesting the late filing penalty for his 2012 tax return. His return, which was ineligible for electronic filing, was on extension. The extension was timely electronically filed. The client believes he went to the … Continue reading →

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Withholding Notice Snafu in California

Posted on June 8, 2016 by Russ

The Franchise Tax Board, California’s income tax agency, apparently issued a boatload of withholding mismatch notices. Some (but not all) of those notices appear to be in error; additionally, the FTB’s phone and chat lines have been swamped. The FTB … Continue reading →

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