DOJ Martin Kapp Letterhead

I was recently reading Robert Greene’s; The 48 Laws of Power and took a few tips from it but more often than not I break them. Today’s infraction is listed under Law 24 “Never Be the Bearer of Bad News”

The Ruling

U.S. District Court Ruling; United States V Martin A Kapp:

  • Judgment is entered against Defendant Martin Kapp
  • The United States may recover its costs
  • Defendant and his agent… are enjoined from preparing tax returns…(2 page list)
  • Within 21 days of this Order Defendant shall provide a list of all persons or entities for whom he prepared returns (any portion of a return, amended returns, or refund claims)… This list is to cover materials that were prepared at any time from January 1, 2000 to present… Defendant must state name, contact information, social security number or employer id number and tax period for which the returns … relate.
  • This is a difficult pill to swallow and a source of much debate within the maritime community. I have yet to sign aboard a ship, attend a training class or participate in any gathering of U.S. mariners where this topic was not discussed… or debated.

    While my wife and I personally used Kapp’s services only once, our first full year after the academy, we missed the January 1st judgment date by a matter of months. We thus have a vested interest in this decision so expect full coverage including answers, interviews and insight here on gCaptain in the coming months.

    The Good News

    We are not tax experts but it seems that the Judge upheld all parts of the “Mariner’s Deduction” except for meal expenses taken while aboard ship, so penalties should be somewhat limited. Apparently the DOJ had the same question that sparks the most debate among mariners; “How can you deduct the food you eat that the company pays for?

    The Reason

    According to the complaint, Kapp has taught college-level tax and accounting classes…

    The IRS recently listed return-prepared fraud as part of its 2006 list of the “Dirty Dozen” tax scams which is posted HERE . Since 2001, the Justice Department has sought and obtained injunctions against more than 160 tax-return preparers and tax-fraud promoters. ref

    Here is the basic info:

    Have you been Kappsized? Enter a comment below or contact us [details in sidebar | contact form] with the questions you’d like answered. All future Kappsized articles will be filed HERE so check back often.

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    • Jim

      Oh SHIT!!!

    • Fran

      no sympathy, you guys are idiots for trusting him

    • MS

      Fran

      * go take a long walk off a short peer*

    • joe

      quick. someone say something funny before i cry

    • Jim

      Oh SHIT!!!

    • Fran

      no sympathy, you guys are idiots for trusting him

    • MS

      Fran

      * go take a long walk off a short peer*

    • jr

      my bar bill is not deductible, damn! i’m sure the Mckays will protect him in the big house

    • jr

      my bar bill is not deductible, damn! i’m sure the Mckays will protect him in the big house

    • joe

      quick. someone say something funny before i cry

    • Jim

      joe, if misery likes company you should be laughing your xxx off right now if not here’s a good joke 4U;

      http://mycrapmail.blogspot.com/2007/04/irs-audit-joke.html

    • Jim

      joe, if misery likes company you should be laughing your xxx off right now if not here’s a good joke 4U;

      http://mycrapmail.blogspot.com/2007/04/irs-audit-joke.html

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    • JB

      Well there goes my week,,, and it’s only monday!

    • JB

      Well there goes my week,,, and it’s only monday!

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    • seatime37

      deducting meal expenses? whats wrong with that? For those of you who sail part time or work shoreside on ships you dont know what I am talking about. The only good cooks that are left ride on matson all the rest are siu flunkies who think they can cook. I go ashore & get groceries every port. Some cooks nowadays cant even make a pancake.

    • seatime37

      at least ashore you have a health dept that regulates restaurants. Galleys on american flag ships are non regulated & non inspected even when visiting U.S. ports. Ever caught a cook using the same pots & pans every day without washing them? I have.

    • seatime37

      deducting meal expenses? whats wrong with that? For those of you who sail part time or work shoreside on ships you dont know what I am talking about. The only good cooks that are left ride on matson all the rest are siu flunkies who think they can cook. I go ashore & get groceries every port. Some cooks nowadays cant even make a pancake.

      • seachick32

        Hey Siu flunkie- here with 4 years from CIA if your dumb self even knows what that means. What ever you sail as, I am sure the people around you are miserable with your constant complaints and negative attitude.
        We have many good steward personal in the SIU and we are very proud of them.
        It is a shame that you have to catergorize the whole union. Maybe you should try shipping with different ships and see what the real world is like.

    • seatime37

      at least ashore you have a health dept that regulates restaurants. Galleys on american flag ships are non regulated & non inspected even when visiting U.S. ports. Ever caught a cook using the same pots & pans every day without washing them? I have.

    • http://www.transport1040.com Colleen Emery

      Feel free to contact us, we can assist you in setting up a payment plan with the IRS if you are a recipient of amended returns ~ at no cost. See our website at http://www.transport1040.com for more information.

    • http://www.transport1040.com Colleen Emery

      Feel free to contact us, we can assist you in setting up a payment plan with the IRS if you are a recipient of amended returns ~ at no cost. See our website at http://www.transport1040.com for more information.

    • steve

      so what can a mariner deduct in the way of per diem incidental expenses. Is it $3 a day only, and no meals. If I am out of the country, can I take a higher per diem amount?

    • steve

      so what can a mariner deduct in the way of per diem incidental expenses. Is it $3 a day only, and no meals. If I am out of the country, can I take a higher per diem amount?

    • http://gcaptain.com John

      Hi Steve. I’m not sure but give James Maguire a call and he’ll fill you in:
      http://www.maguiretaxes.com/

    • http://gcaptain.com John

      Hi Steve. I’m not sure but give James Maguire a call and he’ll fill you in:
      http://www.maguiretaxes.com/

    • http://www.transport1040.com Colleen Emery

      Steve,
      Please recognize foreign localities can be as high as $36/day for incidental deductions. Please see our website at http://www.transport1040.com or contact me at 1-866-777-TWTS (8987) for further clarification.

    • http://www.transport1040.com Colleen Emery

      Steve,
      Please recognize foreign localities can be as high as $36/day for incidental deductions. Please see our website at http://www.transport1040.com or contact me at 1-866-777-TWTS (8987) for further clarification.

    • http://www.transport1040.com Colleen Emery

      Steve,
      Please recognize foreign localities can be as high as $36/day for incidental deductions. Please see our website at http://www.transport1040.com or contact me at 1-866-777-TWTS (8987) for further clarification.

    • Steve

      Can’t find anything definitive on your site. Here’s my question. If I’m at sea all day and in port for the evening (oil services) then I assume I use the port for my incidentals?

    • Steve

      Can’t find anything definitive on your site. Here’s my question. If I’m at sea all day and in port for the evening (oil services) then I assume I use the port for my incidentals?

    • http://gcaptain.com John

      Hi Steve, thanks for commenting.

      I’m confused by the very same question. Normally James Maguire would be happy to post a detailed explanation but, as you can imagine, he’s rather busy this month. I have added a few “related posts” below this post… hopefully they can help you out. If not feel free to give James a call directly.

    • http://gcaptain.com John

      Hi Steve, thanks for commenting.

      I’m confused by the very same question. Normally James Maguire would be happy to post a detailed explanation but, as you can imagine, he’s rather busy this month. I have added a few “related posts” below this post… hopefully they can help you out. If not feel free to give James a call directly.

    • steve

      Hi John- Thanks. I don’t see the related posts.

    • http://dontseerelateedposts steve

      Hi John- Thanks. I don’t see the related posts.

    • http://www.transport1040.com Colleen Emery

      Many of you are now recipients of a ‘frivolous tax’ return letter for 2006. We are well aware of how many letters went out and the best recourse to respond to those letters. A joke regarding a bar bill or a tear may have humor in regard to a $1,500 amendment ~ when you face a $5,000 penalty the game changes. Contact a preparer who can assist you. http://www.transport1040.com.
      To our clients and to mariners in areas affected by Ike – call us – we will work directly with FEMA to assist you with providing tax information.

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    • seachick32

      Hey Siu flunkie- here with 4 years from CIA if your dumb self even knows what that means. What ever you sail as, I am sure the people around you are miserable with your constant complaints and negative attitude.
      We have many good steward personal in the SIU and we are very proud of them.
      It is a shame that you have to catergorize the whole union. Maybe you should try shipping with different ships and see what the real world is like.

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