Author Archives: Russ

IRS Launches Directory of Tax Professionals

Posted on February 5, 2015 by Russ

This morning I received an email noting that the IRS has released an online directory of tax professionals. The system lists EAs, CPAs, attorneys, and participants in the IRS’s Annual Filing Season Program. The first time I tried to use … Continue reading →

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Fake Interest Income, Fake Withholding, Real Fraud at the Tax Court

Posted on February 2, 2015 by Russ

One of the more popular tax fraud schemes is the OID scheme. The idea is that there’s a “secret account” held by the US government and you can obtain a refund from that account. All you have to do is … Continue reading →

Posted in Uncategorized | 1 Comment

This Never Works…

Posted on February 1, 2015 by Russ

If you want to go to prison for tax evasion, there’s an easy method: Withhold payroll taxes and don’t remit them to the IRS or your state tax agency. The government investigates all such actions (or should I say inactions). … Continue reading →

Posted in Payroll Taxes, Tax Evasion | 1 Comment

Golf or Sentencing?

Posted on February 1, 2015 by Russ

It’s a gorgeous day here in Las Vegas today, a perfect day for a round at one of the many golf courses in town. It apparently was just as nice Wednesday in Colorado when three individuals chose to a play … Continue reading →

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Caesars Wins Round One: Chicago, not Delaware

Posted on January 28, 2015 by Russ

Judge Kevin Gross ruled on Wednesday that the bankruptcy case of Caesars Entertainment Operating Company will be tried in Chicago, not Wilmington, Delaware. Caesars’ second-tier creditors wanted the case tried in Delaware; Caesars preferred the Windy City. As Bloomberg reported, … Continue reading →

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One Good Crime Deserved Another

Posted on January 27, 2015 by Russ

Let’s say you’re involved in a 20-year scheme that has successfully evaded millions of dollars in payroll and income taxes for your largest client. However, you’ve only had minor profits from the scheme. So why not embezzle millions of dollars … Continue reading →

Posted in Tax Evasion | Tagged | 2 Comments

The Form 3115 Conundrum

Posted on January 26, 2015 by Russ

[Accounting Today readers: Here’s a link to Fail, Caesar.] Form 3115 is the form used to request an accounting method change. For example, if your business is changing from cash to accrual, this form is filed. Many such changes are … Continue reading →

Posted in IRS, Taxable Talk | Tagged | 3 Comments

Voluntary Human Egg Retrieval and Damages

Posted on January 22, 2015 by Russ

A very interesting full decision of the Tax Court was released today in Perez v. Commissioner. The issue was whether a woman who had eggs retrieved from her body after undergoing fertility treatments in exchange for compensation could exclude the … Continue reading →

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Old Fashioned Theft Leads to New Fashioned Identity Theft

Posted on January 22, 2015 by Russ

A case out of my old home town of Visalia, California lets us know that sometimes there’s just not much you can do to prevent yourself from being a victim of identity theft. Back in 2011 Rebekah Root either stole … Continue reading →

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Fail, Caesar!

Posted on January 19, 2015 by Russ

Last week Caesars Entertainment Operating Company (CEOC) filed for Chapter 11 bankruptcy in Chicago. One week ago, second-tier bondholders filed an involuntary bankruptcy petition in Delaware. A company can only be in one bankruptcy court, so there’s an obvious issue: … Continue reading →

Posted in Gambling | Tagged , | 1 Comment