HOWEVER – any attorney who took this case on a contingency basis would want to make sure they would get paid if they received a judgment. I’ve had many clients tell me that they cannot get in contact with Mr. Kapp, nor will anyone from his office return voicemails. A friend of mine who is an attorney in California has been checking weekly to see if an appeal has been filed on Kapp’s case. No appeal has been made. I’d also be interested to know the basis they would appeal the case on. Long story short – the well might be dried up (or relocated to the Cayman’s) by the time any action is taken.

I do have a growing list of mariners interested in pursuing legal action. I will keep looking for an industry friendly attorney (perhaps an oxymoron) who would be interested in pursuing this. I have spoken to many of Kapp’s clients attorneys and am happy to help them in any way I can. One angry captain told me he had no interest in a monetary settlement, rather he wanted a judge to order Kapp to stand a 0000-0400 stern watch on his vessel mid ocean.

Just remember –

1. If only one person knows the right way to take a tax position there’s a good chance the IRS is going to disagree.
2. Any preparer who asserts that their returns are “IRS Approved” or that they have assurances that their returns won’t be audited is suspect. Ask the preparer for the name and identifying number of the agent in charge who will verify this. NO RETURN IS BEYOND AUDIT. The most powerful accounting firms in the world are subject to audit. The Vice President of the United States was audited several years ago. Any statement to the contrary is false advertising.
3. Keep your own logs. I know there are firms who will make up sailing schedules after the fact. I don’t agree with this practice. Several cases were found in favor of the service because of this practice. Read ALL of the Johnson case! He had to provide an affidavit stating that he did in fact INCURR his incidental expenses every day he was onboard the vessel. To make a schedule after the fact which you would have to swear to being true and accurate is thin in my book. The IRS has NOT published any accepted procedures for reporting your incidentals. Current agents retire, get promoted, and move on to other jobs. Unless they publicly state an accepted procedure, you can’t count on it.

I apologize if I sound preachy. I know many friends and alumni who were affected by the decision. My heart goes out. You shouldn’t have to sail for a month to pay an additional tax bill. I did not agree with Kapp’s practices when I saw his first tax return. There is NO reason to attach publications and court decisions to that type of return. I do not produce “mariner tax returns”. I prepare returns and perform tax planning services for mariners. Yes, there are somewhat unique deductions for people in this field. HOWEVER, if all you concentrate on are those additional business expenses, you’re missing the big picture. I usually associate return preparation with damage control and tax planning with preventative maintenance. An extra $300 in refund money doesn’t stand well next to failing to properly plan transactions – failing to do so can literally cause ten’s of thousands in additional liability.

HOWEVER – any attorney who took this case on a contingency basis would want to make sure they would get paid if they received a judgment. I’ve had many clients tell me that they cannot get in contact with Mr. Kapp, nor will anyone from his office return voicemails. A friend of mine who is an attorney in California has been checking weekly to see if an appeal has been filed on Kapp’s case. No appeal has been made. I’d also be interested to know the basis they would appeal the case on. Long story short – the well might be dried up (or relocated to the Cayman’s) by the time any action is taken.

I do have a growing list of mariners interested in pursuing legal action. I will keep looking for an industry friendly attorney (perhaps an oxymoron) who would be interested in pursuing this. I have spoken to many of Kapp’s clients attorneys and am happy to help them in any way I can. One angry captain told me he had no interest in a monetary settlement, rather he wanted a judge to order Kapp to stand a 0000-0400 stern watch on his vessel mid ocean.

Just remember –

1. If only one person knows the right way to take a tax position there’s a good chance the IRS is going to disagree.
2. Any preparer who asserts that their returns are “IRS Approved” or that they have assurances that their returns won’t be audited is suspect. Ask the preparer for the name and identifying number of the agent in charge who will verify this. NO RETURN IS BEYOND AUDIT. The most powerful accounting firms in the world are subject to audit. The Vice President of the United States was audited several years ago. Any statement to the contrary is false advertising.
3. Keep your own logs. I know there are firms who will make up sailing schedules after the fact. I don’t agree with this practice. Several cases were found in favor of the service because of this practice. Read ALL of the Johnson case! He had to provide an affidavit stating that he did in fact INCURR his incidental expenses every day he was onboard the vessel. To make a schedule after the fact which you would have to swear to being true and accurate is thin in my book. The IRS has NOT published any accepted procedures for reporting your incidentals. Current agents retire, get promoted, and move on to other jobs. Unless they publicly state an accepted procedure, you can’t count on it.

I apologize if I sound preachy. I know many friends and alumni who were affected by the decision. My heart goes out. You shouldn’t have to sail for a month to pay an additional tax bill. I did not agree with Kapp’s practices when I saw his first tax return. There is NO reason to attach publications and court decisions to that type of return. I do not produce “mariner tax returns”. I prepare returns and perform tax planning services for mariners. Yes, there are somewhat unique deductions for people in this field. HOWEVER, if all you concentrate on are those additional business expenses, you’re missing the big picture. I usually associate return preparation with damage control and tax planning with preventative maintenance. An extra $300 in refund money doesn’t stand well next to failing to properly plan transactions – failing to do so can literally cause ten’s of thousands in additional liability.

HOWEVER – any attorney who took this case on a contingency basis would want to make sure they would get paid if they received a judgment. I’ve had many clients tell me that they cannot get in contact with Mr. Kapp, nor will anyone from his office return voicemails. A friend of mine who is an attorney in California has been checking weekly to see if an appeal has been filed on Kapp’s case. No appeal has been made. I’d also be interested to know the basis they would appeal the case on. Long story short – the well might be dried up (or relocated to the Cayman’s) by the time any action is taken.

I do have a growing list of mariners interested in pursuing legal action. I will keep looking for an industry friendly attorney (perhaps an oxymoron) who would be interested in pursuing this. I have spoken to many of Kapp’s clients attorneys and am happy to help them in any way I can. One angry captain told me he had no interest in a monetary settlement, rather he wanted a judge to order Kapp to stand a 0000-0400 stern watch on his vessel mid ocean.

Just remember –

1. If only one person knows the right way to take a tax position there’s a good chance the IRS is going to disagree.
2. Any preparer who asserts that their returns are “IRS Approved” or that they have assurances that their returns won’t be audited is suspect. Ask the preparer for the name and identifying number of the agent in charge who will verify this. NO RETURN IS BEYOND AUDIT. The most powerful accounting firms in the world are subject to audit. The Vice President of the United States was audited several years ago. Any statement to the contrary is false advertising.
3. Keep your own logs. I know there are firms who will make up sailing schedules after the fact. I don’t agree with this practice. Several cases were found in favor of the service because of this practice. Read ALL of the Johnson case! He had to provide an affidavit stating that he did in fact INCURR his incidental expenses every day he was onboard the vessel. To make a schedule after the fact which you would have to swear to being true and accurate is thin in my book. The IRS has NOT published any accepted procedures for reporting your incidentals. Current agents retire, get promoted, and move on to other jobs. Unless they publicly state an accepted procedure, you can’t count on it.

I apologize if I sound preachy. I know many friends and alumni who were affected by the decision. My heart goes out. You shouldn’t have to sail for a month to pay an additional tax bill. I did not agree with Kapp’s practices when I saw his first tax return. There is NO reason to attach publications and court decisions to that type of return. I do not produce “mariner tax returns”. I prepare returns and perform tax planning services for mariners. Yes, there are somewhat unique deductions for people in this field. HOWEVER, if all you concentrate on are those additional business expenses, you’re missing the big picture. I usually associate return preparation with damage control and tax planning with preventative maintenance. An extra $300 in refund money doesn’t stand well next to failing to properly plan transactions – failing to do so can literally cause ten’s of thousands in additional liability.