Archive for March, 2009

Alabama Woman Gets 12 Months for False Tax Filings

Tuesday, March 31st, 2009

Sharon Brown-Acklin, 36, of Hamilton, Ala., was sentenced to 12 months and one day in prison for 27 counts of preparing false tax returns. In addition, Brown-Acklin will serve one year of supervised release and was ordered to pay $79,832 in restitution to the IRS. Brown-Acklin’s use of false information, including filing status and inflated deductions, resulted in $252,123 of improperly claimed deductions and exemptions.
I’ve blogged about tax evasion before.
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Special Tax Break for New Car Purchases in 2009

Tuesday, March 31st, 2009

The Internal Revenue Service announced today that taxpayers who buy a new passenger vehicle this year may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns next year.
“For those thinking about buying a new car this year, this deduction may give them a little more drive to make their purchase this year,” said IRS Commissioner Doug Shulman. “This deduction
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IRS Gears Up for Flood of Refund Requests for NOL Carrybacks

Tuesday, March 31st, 2009

CCH (http://tax.cchgroup.com/) reports:
The IRS is preparing to process an expected surge in refund requests resulting from the enhanced net operating loss (NOL) carryback in the American Recovery and Reinvestment Act of 2009 (P.L. 111-5) (2009 Recovery Act), Linda E. Stiff, deputy commissioner (Services and Enforcement) said on March 30. Stiff also reported that the White House and the Treasury Department are strongly supporting the Service’s international tax enforcement activities. Stiff
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Obama’s Efforts to Eliminate Loopholes and Bolster IRS Compliance Fall Short of Closing Tax Gap

Tuesday, March 31st, 2009

Bloomberg News columnist John M. Berry makes some interesting points regarding President Obama’s new task force created to close the tax gap by focusing on closing loopholes, streamlining tax code and generating revenue.
“It may not accomplish much,” he says.
Highlights from the article include:
With April 15 fast approaching, stronger enforcement and a lot more resources for the Internal Revenue Service should head the administration’s to-do list.
The tax code could be undoubtedly
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Tax Evaders and Tax Cheats Beware! IRS Finally Pierces the Swiss Banking Veil

Monday, March 30th, 2009

In a blow to tax cheats, Switzerland’s largest bank agrees to divulge the names of those suspect of using offshore accounts to evade U.S. taxes
By Michael Rozbruch
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In the world of tax cheats, the news doesn’t get much bigger.
UBS, the largest bank in Switzerland, agreed to provide to the U.S. government with the names of those it suspects of using its accounts to evade paying taxes in the United States. The
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Wealthy Taxpayers Are More Likely to be Audited and Should Know How to Avoid Audit Red Flags

Monday, March 30th, 2009

According to a recent article in the Wall Street Journal, a push by the IRS to be more aggressive with wealthy taxpayers means that it’s critical to know the common tax audit red flags.
The IRS has been strongly disputing a report this week from the Transactional Records Access Clearinghouse that says audits of the wealthy Americans have significantly dropped off.
Taxpayers who make more than $10 million a year or more
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Florida Doctor Evades Taxes, Fails to Evade IRS

Saturday, March 28th, 2009

A doctor in the Orlando, Fla., area pleaded guilty to one count of failure to file an income tax return.
According to the plea agreement, Nelson V. Vazquez, 48, of Deltona, Fla., intentionally did not file income tax returns from 2002 to 2004. The total amount of unpaid taxes for those three years was $54,140.
Vazquez, a medical doctor licensed to practice in Florida, worked as a temporary physician for other physicians
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IRS Announces Revised Voluntary Disclosure Terms for Taxpayers with Offshore Accounts

Friday, March 27th, 2009

The IRS announced new voluntary disclosure practices for offshore account holders. Voluntary disclosure can help taxpayers avoid prosecution for possible tax evasion and reduce taxes, penalties, and interest owed.  The IRS offers leniency for voluntary disclosure and Americans with IRS tax problems should take advantage of this policy to mitigate legal problems later.
While taxpayers can participate in the voluntary disclosure program before the IRS has initiated a civil or criminal
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Last Minute Advice For Recession-Burdened Taxpayers Who Can’t Afford to Pay Taxes and Want to Avoid IRS Penalties

Thursday, March 26th, 2009

I recently appeared on The Chuck Morse Show on WBNW 1120AM (Boston, MA) to encourage taxpayers to file thier taxes by April 15 – even if they don’t have the money to pay the taxes they owe to Uncle Sam.
There’s going to be a lot of people caught up in this recession, and they’ll quickly find out that they owe taxes for 2008, if they don’t know that already. I
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IRS Offer in Compromise Helps Taxpayer in Monroe, WA Save More Than $200,000

Thursday, March 26th, 2009

Just got a nice note from a client in Monroe, Washington and wanted to share his kind words. Our team of tax relief experts was able to greatly reduce his tax debt by negotiating an offer in compromise settlement with the IRS on his behalf.
When he came to us for tax help, he owed the IRS $212,555. We worked on his behalf to negotiate a tax settlement of $2,400. The
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Obama Budget Proposal Starts to Address the Tax Gap and Bolster IRS Compliance

Wednesday, March 25th, 2009

I’ve blogged before about how closing the tax gap could help fund deficit reduction activities. And the White House is definitely searching for new tax revenues. Plans are underway to create a task force that will be looking to end corporate loopholes and bolster IRS enforcement.
The Wall Street Journal reports:
Mr. Obama’s budget proposal began the process of addressing problems such as the tax gap, the difference between taxes owed and
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Tax and Planning Implications for Madoff Ponzi Scheme Victims

Tuesday, March 24th, 2009

I recently blogged about the new IRS Safe Harbor guidelines for Ponzi scheme victims.
CCH has issued a white paper addressing the various tax and planning implications that arise as a result of investment in the Madoff Ponzi scheme or other fraudulent schemes. The paper, Madoff and Other Fraudulent Schemes: Tax and Planning Implications, analyzes the tax issues and bankruptcy implications arising from the schemes and provides an overview of related
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Michigan Man Gets 22 Mos. for Failing to Pay Taxes

Tuesday, March 24th, 2009

Richard Blanchard, 52, of Warren, Mich., was sentenced to 22 months in prison and ordered to pay $195,000 in restitution to the IRS.
In August 2007, a federal jury convicted Blanchard on 18 counts of failure to account for and pay over employee withholding taxes.
From 1997 to 2003, Blanchard operated R. Blanchard Construction Company, which provided excavation and snow removal services. He withheld $195,000 in taxes but failed to pay the
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KLOS Tax Tip #58: Tax Break for New Car Purchases – and Tax Relief for Hardworking Americans with IRS Problems

Tuesday, March 24th, 2009

As the KLOS Tax Man, I give free tax advice to listeners with IRS problems. It’s the perfect way for me to help people with tax debt and reach more Americans who need tax help. Check it out!
The KLOS Tax Man, Tax Tip #58: Buyers of new cars can deduct a sales tax even if they don’t itemize! This break applies to vehicles purchased after February 2009 and before next
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Congressional Budget Office Predicts $1.8 Trillion Deficit Due in Part to Changes in Tax Policy

Monday, March 23rd, 2009

The federal budget deficit for the current year will top $1.8-trillion according to the latest estimates produced by congressional economists
The Congressional Budget Office cited recent government bailouts, tax legislation and the continuing turmoil in financial markets as causes for the growth in the deficit . The latest figures, fueled by the $700 billion Wall Street bailout and diving tax revenues stemming from the worsening recession, would shatter the previous record
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