Radi Grit CPA

12/14/2020

Jerry Don Beebe, 67, owner of a waterslide attraction, has pleaded guilty to making a false return because he did not want to pay additional taxes.

He owned and operated Beebe’s Roaring River Waterslide during the period under investigation from 2015 to 2018. Beebe’s records showed gross receipts of $135,282 for 2017 (when he reported $24,535 on his return) and $145,451 for 2018 (when he reported $29,172 on his return).

Now Beebe must pay $141,648 in restitution for unpaid federal and Missouri taxes and faces up to three years in prison. Is it really worth it to try to hide from the IRS a few years?

Prevent and plan instead to regret!

For More Tax Fraud Cases:

Top boss no more; wrong slide of the law; the run’s over; and other highlights of recent tax cases.

11/17/2020

A couple who reported only losses from horse racing activities from 1995–2010 were determined to be engaged in their thoroughbred activity with an intent to make a profit. The years under audit were 2009 and 2010. The court examined the nine factors under the regulations and determined that the preponderance of the evidence weighed in the taxpayers’ favor.

The strongest factor, in the court’s opinion, was the fact that the taxpayer carried on the business in a professional manner consistent with a profit motive. Additionally, the Tax Court stated that the expertise of the taxpayer, his time and effort in running the activity, the likelihood that the assets would increase in value, and the minimal occasional profits that were earned weighed sufficiently enough for it to rule in the taxpayer’s favor (Mel A. Annuzzi and Jean L. Annuzzi v. Comm., TC Memo 2014-233).

11/16/2020

Why is it important for businesses to maintain updated financial records?

The importance of maintaining contemporaneous records should be emphasized to your clients. Many individuals believe that they can re-create the records if necessary for an audit.

The case of Alvaro G. Velez v. Commissioner, T.C. Memo 2018-46 emphasizes the problem with this approach. The taxpayer was an attorney who was denied the deduction for car and truck expenses because he failed to produce substantiation requirements. He provided records made on his iPad calendar purporting to show his automobile use.

However, he created them several years after the relevant automobile use and long after he had full present knowledge of each element of each expenditure or use. Additionally, the calendar used to create the logs was not available and the Court ruled that credit card statements and other documents were insufficient to corroborate the business purpose or location of the claimed expenditures.

09/04/2020

The Tax Court found that a business that bred and raised horses for equestrian competition had a profit motive despite years of reported losses. -

This semiannual update of recent developments in the area of individual taxation includes cases on conservation easements, discharge of student loan debt, net operating loss deductions, and real estate professional status.

07/20/2020

Don't be a victim of any of these scams. The IRS unveils "Dirty Dozen" list of tax scams for 2020:

IR-2020-160, July 16, 2020 — The Internal Revenue Service today announced its annual "Dirty Dozen" list of tax scams with a special emphasis on aggressive and evolving schemes related to coronavirus tax relief, including Economic Impact Payments.

05/26/2020

Member of the AICPA and Certified in Bill.com, Xero, and QuickBooks Online! www.radigritcpa.com

04/16/2020

Economic Impact Payment Update: Visit https://www.irs.gov/coronavirus/economic-impact-payments for the latest information on eligibility, timing and answers to your questions about stimulus payments.

We’re committed to helping you get your economic impact, or stimulus, payment as soon as possible. See if you are eligible for an Economic Impact Payment.

04/07/2020

20 to 50 employees?
Retail, real estate, management, construction, equestrian, landscape, nonprofits or software?

If your company matches one or more of the above, you already know how to make money and you know how tricky becomes controlling it, staying up to date on reports and doing taxes efficiently.

Let us give you a hand, stay focused on your business and we will do the accounting!

04/01/2020

Starting April 10, independent contractors and self-employed individuals can apply.

Small businesses and sole proprietorships hoping to secure a loan through the federal Paycheck Protection Program can begin applying Friday, April 3.

03/31/2020

This post summarizes the developments of the most massive stimulus bill in American history, the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

This post summarizes the developments of the most massive stimulus bill in American history, the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act will provide billions of dollars of relief to individuals, businesses, state and ...