Archive for April, 2009

Ohio Man Did Not Report $2.4 Million in Income

Monday, April 20th, 2009

Mark J. Zokle, 43, of Sandusky, Ohio, was charged with failing to file federal income tax returns on $2.4 million in income. The information alleges that in 2001, 2002 and 2003, Zokle worked as an independent sales representative for TEMO Sunrooms, of Clinton Township, Mich., and earned commission income of $862,463.89, $756,980.77, and $794,067.64, respectively, in those years but failed to file tax returns.
I’ve blogged about failing to file income
[Read More]

Tennessee Attorney Charged with Income Tax Evasion

Saturday, April 18th, 2009

Thomas E. Cowan Jr., 64, of Elizabethton, Tennessee, has been indicted by a federal grand jury on one count of income tax evasion and three counts of failure to file income tax returns.
According to the indictment, Cowan, an attorney, attempted to evade a large part of the income and self-employment taxes, penalties and interest due to the United States for tax years 1993 to 1997. The indictment alleges that Cowan
[Read More]

What Did the President Pay in Taxes? Barack Obama’s Tax Returns Released

Friday, April 17th, 2009

I’ve blogged about the numerous Obama administration nominees to have tax troubles - and now the White House has release Obama’s tax returns. Here’s a great blog post about what we can learn from Obama’s tax returns.
According to the Washington Post, Barack Obama earned about $2.6 million from the sale of his books, “The Audacity of Hope” and “Dreams From My Father” - which represent the vast majority of the
[Read More]

In Bad Economy, Tax Enforcement and Convictions of Tax Defiers Are on the Rise

Friday, April 17th, 2009

I recently blogged about how frivolous arguments topped the IRS Dirty Dozen list of most common tax schemes. And in this bad economy, there will be more individuals maintaining frivolous arguments for not paying their taxes.
While many Americans were paying their taxes on April 15, there’s a group of citizens known as tax defiers, deniers or protesters who cite many different reasons refusing to pay their income taxes.
Their frivolous arguments
[Read More]

There’s Still Hope if You Didn’t File Your Taxes: You Can Still Get Income Tax Relief and Avoid IRS Penalties

Thursday, April 16th, 2009

It’s the morning after April 15… Did you file your taxes?
Every year, millions of taxpayers fail to file legally required tax returns by the April 15 deadline, which can lead to more significant financial problems in the long run including huge penalties and jail time. But it’s not too late for delinquent taxpayers to resolve tax debt and avoid IRS penalties.
The longer you put off dealing with overdue taxes, the
[Read More]

Have You Filed Your Taxes? Consequences Include Increased Financial Liability and Imprisonment

Wednesday, April 15th, 2009

It’s tax day! I know people don’t file their tax returns for different reasons and in this economy, and many Americans may opt to not file because they don’t have the funds to pay the taxes owed.
If you can’t afford to pay your taxes, there are payment options for tax relief!
Additionally, what taxpayers may not know is that failure to file tax returns may be construed as a criminal act
[Read More]

IRS to Give Offshore Tax Evasion Cases ‘Priority Treatment’

Tuesday, April 14th, 2009

Internal documents reveal IRS has made offshore tax evasion its highest-priority target; investigators will focus on unreported income
By Michael Rozbruch
———————————-
The memo sent to examination staff of the Internal Revenue Service was clear.
Investigators should make sure offshore tax cases “receive priority treatment.”
Indeed, internal documents released by the tax-collecting agency, coupled with public comments from IRS Commissioner Doug Shulman, leave little doubt the government will focus the brunt of its enforcement efforts
[Read More]

2009 Dirty Dozen: IRS List of Most Common Scams to Avoid Paying Income Taxes that Land Victims in a World of Tax Trouble

Tuesday, April 14th, 2009

According to the IRS annual Dirty Dozen list of most common tax schemes, phishing “expeditions”  are on the rise this year along with frivolous tax arguments.  I even got a phishy email the other day.  These scam email look real too.. on IRS simulated letterhead complete with the logo and all.
It’s no surprise that these tax scams are being peddled to Americans in full force -  as IRS enforcement is
[Read More]

Individual Convicted of Aiding and Assisting in Filing False Tax Returns

Tuesday, April 14th, 2009

As I’ve mentioned before, average citizens are just as likely to get in tax trouble for tax evasion and filing false tax returns as high profile celebrities. And the individuals who assist tax cheats should also beware!
CCH (http://tax.cchgroup.com/) reports:
A federal district court determined the base offense level and appropriate sentencing enhancement of an individual convicted of aiding and assisting in the filing of materially false tax returns. The court based
[Read More]

Reasonable Cause Not Established for Failure to Timely File Returns and Pay Taxes; Penalty Imposed

Tuesday, April 14th, 2009

Failure to file your legally required tax returns can cause you to incur significant penalties and may be construed as a criminal (misdemeanor and potentially a felony!) act by the IRS. However, there are circumstances where an individual may have “reasonable cause” for not filing or paying taxes due (divorce, job loss, death in the family, illness, etc).
The law allows for the abatement of penalties for reasonable cause, which is
[Read More]

Can’t Afford to Pay Your Taxes? IRS Offers Payment Plans and Tax Relief Options

Monday, April 13th, 2009

If you can’t afford your tax bill this year, know that the IRS offers payment options for struggling taxpayers.
While individuals are urged to file their tax returns and and pay any taxes owed by April 15, the agency is aware that the economic downturn has made this difficult for many people.

Taxpayers who do not file their tax returns by the April 15 deadline may be subject to a failure-to-file penalty.
[Read More]

Guidance on Sharing of Financial Information in Innocent Spouse Cases

Monday, April 13th, 2009

Taxpayers can get in tax trouble because of their spouses or (ex-spouse’s) financial problems - but the good news is the IRS has guidelines for innocent spouse relief.  And in a recent email, the Chief Counsel’s office has just released additional guidelines on the sharing of information in these types of cases.
CCH (http://tax.cchgroup.com/) reports:
The Chief Counsel’s Office has provided guidance, in an e-mail, regarding the sharing by the IRS, in
[Read More]

Ten Last Minute Filing Tips from the IRS - Save Time and Money When Filing Your 2008 Tax Returns

Monday, April 13th, 2009

If you haven’t filed your 2008 tax return, haven’t paid your your taxes owed, or are requesting an extension of time for filing, the IRS has issued last minute tax tips that can help you in these final hours.
Knowing how to get tax help and learning about options that are available to you as a taxpayer can save you time, money and frustration in the long run. For instance, if
[Read More]

Tax Client of the Month: Offer in Compromise Program Solves Tax Debt for James Eagle

Saturday, April 11th, 2009

Every month I choose a very special Tax Client Of The Month.  It’s my way of acknowledging good friends and saying “thanks” to those who support me and my business with referrals, word of mouth and repeat business.
 This month’s Tax Client Of The Month is Mr. James Eagle.
Mr. Eagle owed the IRS over $212K in back taxes. We were able to settle his debt for just $2400 through the IRS’s
[Read More]

California Taxpayers with the Largest Delinquent Income Tax Bills Owe $143 Million in Back Taxes

Friday, April 10th, 2009

The Los Angeles Times released a list of California taxpayers with the largest delinquent income tax bills who together owe $143 million in back taxes.
While O.J. Simpson and his $1.5 million bill have been taken off the list (after being sentence to 9 years in prison), Dionne Warwick (who owes $2.18 million) and Burt Reynolds (who owes $225,000) are among the notable names on the list of 250 people with
[Read More]