Category Archives: Tax Preparation

Sailing Away

Posted on August 23, 2007 by Russ

If you receive a free meal, can you take a tax deduction for it? That’s a simple question, and I’d guess that 99.99% of the public would use common sense to answer the question: No, of course not. How can … Continue reading →

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Not a Good Week for Bozo Tax Preparers

Posted on August 12, 2007 by Russ

There are good tax preparers, bad tax preparers, and bozo tax preparers. There have been two recent stories about the latter group—tax preparers, please don’t copy their methods. >From San Jose, California, comes the story of Melinda Newens. The former … Continue reading →

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A Graduate of Western Tax Service?

Posted on July 19, 2007 by Russ

The Western Tax Service method of preparing tax returns is different. Customers love the high refunds. Of course, the deductions claimed on Schedule A were almost all either false or overinflated. Did I mention that Western’s proprietor is at ClubFed … Continue reading →

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Bozo Tax Tip #2: 300 Million Witnesses Can’t be Right

Posted on April 15, 2007 by Russ

For a tax blogger, people like Richard Hatch are wonderful. Hatch, for those who don’t remember, was the winner of the first Survivor and won $1 million. About 300 million individuals worldwide saw Hatch take down the $1 million. Hatch … Continue reading →

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Bozo Tax Tip #3: Nevada Corporations

Posted on April 14, 2007 by Russ

California is not a low-tax state. The corporate tax rate is 8.84% for C Corporations (1.5% for S Corporations); both must pay a minimum $800 tax each year. If I’m in my car for any appreciable length of time, I’ll … Continue reading →

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Bozo Tax Tip #4: Structure Your Transactions

Posted on April 14, 2007 by Russ

When I was in college, I was taught that there is a right way journal entries should be written and many wrong ways. There’s an appropriate structure to a journal entry, and you want to make sure you keep the … Continue reading →

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Bozo Tax Tip #5: Just Don’t File

Posted on April 12, 2007 by Russ

A few weeks ago, I had lunch with a friend who is a fellow tax preparer. He told me a story of “Abe.” This Abe definitely wasn’t like Honest Abe. He had gone fifteen years without filing a tax return. … Continue reading →

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Bozo Tax Tip #6: Add Some Phony Deductions

Posted on April 10, 2007 by Russ

A few years ago, a prospective client came to me. He had used Western Tax Service, and the IRS was about to audit him. Western, for those unfamiliar with them, had a great way of attracting clients: they invented phony … Continue reading →

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Bozo Tax Tip #7: Barter Your Way to No Taxes

Posted on April 10, 2007 by Russ

Have you heard about Kyle McDonald, the guy who bartered his way from one red paperclip to a house in Saskatchewan? Yes, barter can do that for you. Say you have a box of binders you don’t need. Meanwhile, your … Continue reading →

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Bozo Tax Tip #8: Use Consecutive SSN’s When Cheating the IRS

Posted on April 8, 2007 by Russ

Let’s thank Michael Graham of Queens, New York for coming up with this gem. Mr. Graham decided to file phony tax returns with the IRS. He used consecutive social security numbers on his tax returns. He did get one tax … Continue reading →

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