Category Archives: IRS

Dearest Commissioner Shulman…

Posted on November 21, 2011 by Russ

I prepare a lot of Schedule C (sole proprietor) returns. That comes with the nature of my practice: I have a lot of professional gamblers as clients, and they file Schedule C. The IRS knows that there are unscrupulous tax … Continue reading →

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Irene E-File Deadline is Halloween Morning

Posted on October 26, 2011 by Russ

I just spoke with my software vendor and learned that the e-file deadline for those impacted by Hurricane Irene is 9am EDT on October 31st (6am PDT). Effectively, the deadline is Sunday night for me. As to why the IRS … Continue reading →

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A Chestnut Is in the Rough

Posted on October 24, 2011 by Russ

Another week, two more individuals have been sued by the Department of Justice for allegedly promoting phony tax schemes. Rodney Chestnut and Nafeesah Hines are alleged to have found a unique way for you and I to obtain tax refunds: … Continue reading →

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What the New Form 1099-K Hath Wrought: Changes on Business Tax Forms

Posted on October 24, 2011 by Russ

There’s a new information reporting form coming this year: Form 1099-K. This form will report how much in payments are received by anyone via credit card and other third party payment systems (e.g. PayPal). This seems like a good way … Continue reading →

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PTIN Follies, Year 2

Posted on October 20, 2011 by Russ

The IRS announced today that tax professionals can renew their PTIN, an identification number used on tax returns. Seeing no reason to delay spending $63.00 I went headfirst into the process. What a kludge. And yes, I’m being derisive. The … Continue reading →

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Possible Problem With IRS Coding of Rejected Tax Payments

Posted on October 20, 2011 by Russ

If you are a tax professional and have recently had a client (or clients) whose IRS payment shows as rejected on Form 9325, it is possible that the payment actually went through. When an individual files his tax return electronically, … Continue reading →

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Recharacterization Deadline for Roth IRAs is October 17th

Posted on October 11, 2011 by Russ

Many individuals converted their traditional IRA to a Roth IRA in 2010. It seemed like a great idea but then the stock market went down. Now, some of these individuals owe tax on money they no longer have. You can … Continue reading →

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Bad News for Medical Marijuana

Posted on October 7, 2011 by Russ

Yesterday the Associated Press reported that US Attorneys in California have sent letters ordering medical marijuana dispensaries to close. The problem is that while medical marijuana use in California is legal under state law, marijuana remains illegal under federal law. … Continue reading →

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Draft Instructions Released for Son of FBAR; Gambling Accounts Will Not be Reportable

Posted on September 30, 2011 by Russ

The draft instructions for the new Son of FBAR (Form 8938) were released today. (Here is a link to my discussion of the form itself.) Here are some highlights from a first skimming of the instructions: For unmarried taxpayers living … Continue reading →

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Canada Fights Back

Posted on September 19, 2011 by Russ

Jim Flaherty is the Finance Minister in Canada. Mr. Flaherty (along with many Canadians) is not happy about FATCA and FBAR. FATCA will impose requirements on Canadian banks (and other financial institutions throughout the world) to report transactions to the … Continue reading →

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