Author Archives: Russ

Up In Smoke, Again

Posted on October 22, 2015 by Russ

A California non-profit corporation tried to find a way around Section 280E of the Tax Code at Tax Court. Would they be successful or would yet another marijuana business fall victim to the difference between federal and state law? In … Continue reading →

Posted in IRS, Tax Court | Tagged | 1 Comment

The Wagering Excise Tax and DFS

Posted on October 20, 2015 by Russ

I’m focusing on the tax aspects of daily fantasy sports (DFS) this week. It’s beneficial for DFS participants for the activity to be considered gambling. For political reasons (“gambling is a sin”) and regulatory reasons (gambling is regulated, skill contests … Continue reading →

Posted in Gambling | Tagged | 1 Comment

The Future of DFS

Posted on October 18, 2015 by Russ

If you watch any sports television, you’ve almost certainly seen commercials for the two leading daily fantasy sports (DFS) sites, DraftKings and FanDuel. Last week the Nevada Gaming Control Board announced that DFS is gambling under Nevada law. The Nevada … Continue reading →

Posted in Gambling | Tagged | 1 Comment

That Was the Year that Was

Posted on October 18, 2015 by Russ

Last November I wrote about “The Horrible, No Good, Very Bad Upcoming Tax Season.” This definitely wasn’t the best tax season but it also wasn’t the worst (but it was close to the bottom). The four issues that I identified … Continue reading →

Posted in IRS, Tax Preparation, Taxable Talk | Tagged , | 1 Comment

It’s October 13th and I’m Still Not Ready to File my Taxes; What Should I Do?

Posted on October 12, 2015 by Russ

Somewhere, there’s a procrastinator wondering that exact question. He’s likely thinking, “I don’t have to do anything; I have until October 15th!” That’s not a good answer (with one exception [1]). First, most tax professionals will not be able to … Continue reading →

Posted in IRS, Tax Preparation | 3 Comments

Gilbert Hyatt Goes to Washington…Again

Posted on October 11, 2015 by Russ

The Franchise Tax Board sent out a release on Friday noting that oral arguments in California Franchise Tax Board v. Hyatt will take place on December 7th. This is the second time this case has reached the US Supreme Court. … Continue reading →

Posted in California | Tagged | 1 Comment

IRS to Tax Professionals: Rules for Thee but Not for Us

Posted on October 8, 2015 by Russ

Today I received an alert from the IRS that a new version of Publication 4557 is available. (At this point, only the web version of the publication is available.) Interestingly, the IRS notes the following: To safeguard taxpayer information, you … Continue reading →

Posted in IRS | Tagged , | 2 Comments

Tax Relief for South Carolinians

Posted on October 7, 2015 by Russ

South Carolina was devastated by a 1000-year storm. Much of the state has been declared a disaster area. A friend of mine who lives in Columbia tweeted pictures that show the absolutely ridiculous amount of flooding. The IRS has offered … Continue reading →

Posted in South Carolina | 2 Comments

Well, That’s One Way to Avoid ClubFed

Posted on October 5, 2015 by Russ

Peter Mizioch pleaded guilty on September 4th to one count of preparing a false tax return. Mr. Mizioch was allowed by the sentencing judge to go on a Caribbean cruise. Mr. Mizioch is now answering to a higher authority — … Continue reading →

Posted in IRS, Tax Evasion | 1 Comment

There Is No Magic OID Process

Posted on October 4, 2015 by Russ

One of my clients handed me a 1099-OID today. That’s income to him, duly noted on his now-filed tax return. A different individual decided to promote a very different OID plan, an “O.I.D. Process.” He’ll be spending nearly six years … Continue reading →

Posted in Tax Fraud | 1 Comment