Category Archives: IRS

A Modest Proposal on Tax-Related Identity Theft

Posted on September 9, 2012 by Russ

The issue of identity theft is growing. The IRS is faced with twin challenges on this front: The IRS needs to quickly process tax refunds but it also needs to combat this growing issue. The IRS’s current policy is to … Continue reading →

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Another Week, More Tax-Related Identity Theft

Posted on September 9, 2012 by Russ

Seven citizens from Zimbabwe opened Express Refund Center in Cincinnati in 2007. The business thrived, but not for those unfortunate souls who used the service. It seems that the operators allegedly decided that stealing their customers’ identities was a lot … Continue reading →

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IRS Upgrade This Weekend; Many Services Unavaiable Until Tuesday

Posted on August 29, 2012 by Russ

Every year over Labor Day weekend the IRS upgrades their computer and electrical systems. Beginning later this evening, the IRS will be taking systems down. Here’s a partial list of what will be going down: – The ability to apply … Continue reading →

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A Story of Identity Theft; Why Is the Death Master File Still Available?

Posted on August 26, 2012 by Russ

My father died almost six years ago. It’s something that’s inevitable for all of us. My mother was lucky in one respect: No one stole my father’s identity at death. Unfortunately, such identity thefts are becoming far more common. Jason … Continue reading →

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While I Was Out: TIGTA Assails IRS’s ITIN Management and Did Harry Reid Violate the Law?

Posted on August 8, 2012 by Russ

My vacation is over, and that’s not a good thing (for me). While I was enjoying my time off, our Congresscritters remain in a bickering mood. A close election–and this year’s presidential race will likely be one such race–means that … Continue reading →

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Another FATCA Consequence: Sending 1042-S’s With No Withholding

Posted on July 19, 2012 by Russ

One of my clients who played in the World Series of Poker asked me to prepare his Form 1042-S’s to show the required withholding for some of his backers. The 2012 form is available, and it looks identical to the … Continue reading →

Posted in Gambling, International, IRS | 1 Comment

The Tax War Against Medical Marijuana

Posted on July 15, 2012 by Russ

Think what you may about medical marijuana (legal in about 17 states), there is a certainty for federal income tax purposes: Marijuana is a Class I narcotic so deducting expenses on a tax return for a marijuana dispensary is a … Continue reading →

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FBAR Due Next Saturday, June 30th

Posted on June 24, 2012 by Russ

Anyone with $10,000 in one or more foreign financial accounts (determined by taking the maximum balance of each account at any time during the year, summing the maximums, and comparing the sum to $10,000) must file Form TD F 90-22.1 … Continue reading →

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Tony Gwynn in Tax Trouble

Posted on June 10, 2012 by Russ

Baseball Hall of Fame member Tony Gwynn has tax troubles. The former San Diego Padre and current head baseball coach at San Diego State University owes more than $400,000 in back taxes according to a report in the San Diego … Continue reading →

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An Incorrect 1099-C Leads to Tax Court

Posted on May 21, 2012 by Russ

A taxpayer receives a notice of canceled debt income (Form 1099-C). He disputes the notice, stating that instead of the debt being canceled in 2008, the debt went away years earlier — 1996. The IRS says the notice says you … Continue reading →

Posted in IRS, Tax Court | 1 Comment