Archive for July, 2012

Former Accountant Guilty of Tax Evasion

Monday, July 30th, 2012

James C. Howell Jr., 54, of Germantown, Tenn., a suburb of Memphis, pleaded guilty to one count of income tax evasion, admitting that he attempted to evade payment of nearly $300,000 in taxes.
According to court records, Howell, a former certified public accountant, filed a 2004 federal income tax return with the Internal Revenue Service that falsely claimed he had no taxable income for that year.
Howell admitted that he understated gross
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False Tax Returns Filed by Construction Company Owner

Friday, July 27th, 2012

A former resident of San Rafael, Calif., was charged with filing false tax returns. For the tax years 2005 through 2008, John Kieran Hynes allegedly filed returns that he did not believe to be true. He reported gross receipts from his construction in those years for $10.2 million. Hynes allegedly knew the gross receipts from his business were in excess of the amounts reported on those returns. He faces up
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Major Tax Issues for Those Who Willfully Ignore FBAR

Friday, July 27th, 2012

Anyone who believes the IRS takes a “kinder, gentler” approach to taxpayers who don’t report their offshore bank accounts had their hopes dashed this week. In the news were two cases that involved secret Swiss bank accounts, millions of dollars unreported in those accounts and willful attempts at keeping those accounts hidden.

A Virginia court ruled in favor of the IRS against an ex-Mobil executive who they said intentionally failed to
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S-Corp Business Audits Up-Says IRS Watchdog

Thursday, July 26th, 2012

The government is focused on narrowing budget gaps and trying to find revenue from wherever it can. In recent years, the IRS has set its sights on small business and upped S-Corporation audits believing there was a good chance to collect on their non-tax compliance. However, a Reuters article titled Small business audits often find no more taxes due-IRS watchdog reports that IRS watchdog, Russell George criticized the high number
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False Tax Returns Filed by Former Owners of Healthcare Company

Thursday, July 26th, 2012

The former owners of a Wichita, Kan., healthcare company have pleaded guilty to filing false tax returns.
Gerard Lessard, 68, and his wife, Betty Lessard, 73, both of Wichita and former owners of ProActive Health Care, each pleaded guilty to one count of filing a false tax return.
In their pleas, they admitted that in October 2005 they filed a joint federal tax return for the year 2004 in which they failed
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National Debt Cannot Be Solved by Taxing the Rich

Wednesday, July 25th, 2012

Taxing America’s most wealthy citizens will not even come close to accomplishing the goal of balancing the budget. It’s actually a joke to even suggest that it would.

Paying Off Tax Debt with the IRS Offer in Compromise or Installment Agreement Plan

Tuesday, July 24th, 2012

Question: I owe for several years of back taxes. How do I know whether the Offer in Compromise or the Installment Agreement is right for me?

Answer: Great question. The truth is, you will need to consult a qualified tax professional to be certain which of these plans is appropriate for you. But I hope by explaining in detail what these plans offer, you’ll be better informed when you meet
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Tax Problems Created by IRS Art Advisory Panel

Monday, July 23rd, 2012

Usually, most taxpayers make mistakes by overstepping tax law boundaries. However, the IRS is not above making mistakes too, and can create tax problems and disputes as a result. When this happens, we stop and take notice. An article by Janet Novack of Forbes The IRS Art Advisory Panel Has Its Head In the Clouds reports on one such noticeable case; the strange and bizarre tax dispute between the IRS,
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Tax Violations by Guilty Contractor

Monday, July 23rd, 2012

An Idaho contractor has pleaded guilty to tax violations that could send him to prison for three years.
According to the plea agreement, Garth Callaghan, 57, of Hailey, Idaho, has owned Garth Callaghan Construction Inc. since 1998. Callaghan paid his employees, in part, through checks he drew on his personal account. Callaghan admitted that he failed to collect any withholdings and trust fund taxes on these payments. He agreed to pay
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Tax Relief Weekly News Round Up

Friday, July 20th, 2012

Happy Friday everyone! It’s time for another weekly tax relief roundup covering a myriad of IRS tax debt issues currently talked about in the news.
It seems there are always headlines about people trying to scam the tax system. This week was no exception:

Jerold Fisher from Arma, Kansas was charged with filing false claims that he over paid more than $3.9 million in taxes, and that his mother (whose returns Fisher
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Tax Man Video Introduces Client Care Team

Friday, July 20th, 2012

Since starting Tax Resolution Services (TRS) in 1997, I have seen my share of tax resolution firms come and go with some firm closures so large their demise made news headlines. As an industry pioneer and national tax resolution expert, I discovered a few secrets to staying in the game were to provide excellent customer service and hire and train great people.
The latest TaxMan video gives viewers a chance to
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Failure to File Taxes Finds Oregon Tax Protestor Guilty

Wednesday, July 18th, 2012

Following a four day trial, an Oregon tax protestor was found guilty of three counts of income tax evasion, three counts of willful failure to file tax returns and one count of witness tampering.
According to court records, Randall Blair Johnson, 53, of Sisters, Ore., was a real estate agent and half-owner of TR Hunter Real Estate, a company in Florence, Ore. Johnson’s primary sources of income were from real estate
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Offshore Account Disclosure and Your Spouse

Tuesday, July 17th, 2012

Most American citizens with offshore bank accounts know by now that they are obliged to report them to the IRS. Since 2009, the Offshore Voluntary Disclosure Programs (OVDP) have been instrumental in bringing hundreds of Americans including joint filing couples into tax compliance. But for couples, what happens to compliance if one spouse wants to participate in OVDP to come clean without the other spouse knowing? A Forbes article entitled
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False Tax Return Claims Refunded Millions to Farmer

Monday, July 16th, 2012

A Kansas farmer has been charged with receiving millions of dollars in tax refunds based on filing false tax returns.
Jerold D. Fisher, 47, Arma, Kan., is charged with one count of filing false claims. An information filed in Topeka alleges Fisher, who was the registered agent for Fisher Alfalfa Farms, prepared false tax returns both for himself and for his mother in order to receive tax refunds that were not
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Ponzi Scheme Tax Relief with Section 165 Representation

Monday, July 16th, 2012

When it comes to financial investments, we’ve all heard “if it sounds too good to be true, it usually is.” Yet in spite of that warning, every year thousands of Americans lose their entire life savings to Ponzi schemes. The most infamous is Bernie Madoff who is serving a 150 year prison term for running one of the biggest Ponzi schemes in history. His financial scam devastated thousands, many being
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