Category Archives: Tax Preparation

Wash Sales Go To IRAs, Too

Posted on December 25, 2007 by Russ

Last week the IRS announced in Revenue Rule 2008-05 that wash sale rules impact transactions into an IRA. This could have a major impact to the unaware. A “wash sale” is when you sell shares of stock at a loss, … Continue reading →

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Unaccountable Business Services?

Posted on October 1, 2007 by Russ

Another alleged bozo tax preparation firm has apparently been put out of business. From Gilbert, Arizona (suburban Phoenix) come the story of Accountable Business Services. If you’ve read this blog before, and have noted the tale of Western Tax Service, … Continue reading →

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Another Bozo Tax Preparer Out of a Job

Posted on September 27, 2007 by Russ

Having had to deal with a few refugees from Western Tax Service, I’ve seen the damage that a bozo tax preparer can do. But this story is, well, ridiculous. >From Oronogo, Missouri, comes the story of Carrie Shafer. Ms. Shafer … Continue reading →

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Western Tax Service Raises Its Head…Again

Posted on September 26, 2007 by Russ

In February 2006, I wrote about the “end of the sage” for Western Tax Service. Western Tax Service, for those who don’t remember, had inventive but illegal methods for getting refunds for its’ clients: phony deductions for employee business expenses, … Continue reading →

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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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