Category Archives: Tax Evasion

You Mean I Have to Pay Tax on my Embezzlement Proceeds?

Posted on June 4, 2011 by Russ

Yes, illegal income is just as taxable as legal income. If you embezzle funds you have to report that income as “Other Income” on line 21 of Form 1040. Eugene Ceriello discovered this reality. Mr. Ceriello ran the back-office operation … Continue reading →

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Bozo Tax Tip #6: Foreign Trusts

Posted on April 10, 2011 by Russ

By far the worst tax schemes in the view of the IRS are offshore (foreign) trusts. In fact, trusts of all sorts—domestic and foreign—are regularly abused. First, not all trusts are bad. Many trusts serve a legitimate purpose, such as … Continue reading →

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A License Didn’t Prevent This (and Won’t in the Future)

Posted on March 23, 2011 by Russ

There’s no doubt in my mind that even if every tax preparer in the country obtained a license, there would still be problems with tax professionals. It’s human nature: Some people are greedy and, as Willie Sutton didn’t state [when … Continue reading →

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Fallen from the Peak

Posted on March 21, 2011 by Russ

With the Final Four in full force, it seems fitting to look at one man who is probably not enjoying the NCAA Basketball championships. In prior years, Nathan Peake would likely be scouting players, to see if any would be … Continue reading →

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He’s Back!

Posted on March 13, 2011 by Russ

Just when you think you can finally put Richard Hatch out of mind, he fumbles back into the spotlight. Mr. Hatch is, of course, the winner of the very first Survivor; he thought that the $1 million he won on … Continue reading →

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Wesley Snipes Petitions the Supreme Court

Posted on March 7, 2011 by Russ

Wesley Snipes has submitted his petition for writ of certiorari to the US Supreme Court. Mr. Snipes would like to have his conviction reversed. As best as I can determine, Mr. Snipes is arguing that the case shouldn’t have been … Continue reading →

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Ciavarella Guilty of 12 of 39 Counts

Posted on February 22, 2011 by Russ

Back in 2009, I reported on what I called, “One of the worst cases I’ve read about.” I like putting humor in posts, but that post was just matter of fact. I had not read before of such horrendous corruption … Continue reading →

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Well, It Was Only Three Zeroes Off

Posted on February 18, 2011 by Russ

I didn’t know that shoe inserts were a good business, but they are. Randall Pennington, of Houston (and formerly of Branson West, Missouri) was the proprietor of an orthotics business in Missouri. One look at the tax returns of his … Continue reading →

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Wellek Gets 1 Year at ClubFed

Posted on February 7, 2011 by Russ

There’s something about strip clubs that make them go hand-in-hand with tax evasion. Michael Wellek owned three such clubs in the Chicagoland area. Back in 2003, the IRS seized $12 million from a warehouse owned by Mr. Wellek. And that’s … Continue reading →

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William Murray Follow-Up

Posted on December 26, 2010 by Russ

For those of you who may remember, just about one year ago I wrote about William Murray. Mr. Murray was the proprietor of a tax blog called April15.com. He was a CPA in Sacramento who had a large practice. He … Continue reading →

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