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Thursday, July 29th, 2010
How does that old saying go? If you can’t beat them, join them. This message is for all the people who think they can beat the IRS by cheating on their taxes, filing fraudulent tax returns or hiding their income. If I have to spell it out for you, I will. The bottom line is, you can’t beat the IRS. So you might as well join the masses of US citizens that diligently pay their taxes every year. And if you feel that you can’t pay what you owe, then you need to seek out professional tax help. For example, Tax Resolution Services has a team of tax attorneys and Certified Tax Resolution Specialists that are available to help you get tax relief. The IRS has payment plan options, a program that allows you to pay less than what you owe (Offer in Compromise) if you qualify, allows you to file delinquent tax returns, offers tax relief for innocent spouses and much more. Believe it or not, the IRS can be flexible, especially when you’ve got a tax expert guiding you through the hoops. The IRS is not flexible only when you cheat on your taxes! You can pretty much expect prison time and a hefty fine each time!
Robert L. Braddy Jr., 39, of College Park, Ga., was sentenced to two years and six months in prison for income tax evasion. He was also ordered to pay $306,906 in restitution.
Braddy was immediately remanded to the custody of the U.S. Marshals Service at the conclusion of the sentencing hearing.
According to court records, when Braddy filed his 2003, 2004 and 2005 federal income tax returns, he willfully attempted to evade a large part of the income tax he owed the United States by filing a false and fraudulent U.S. Individual Income Tax Return (Form 1040).
For each of the returns he filed, he knew that his total income and the tax due and owing substantially exceeded the amounts he reported.
Braddy under reported his income by more than $1.1 million and underpaid his income taxes by $306,906
“This defendant hid $1 million in income and cheated his fellow citizens who pay their fair share of taxes. Now he is going to prison,” said United States Attorney Sally Quillian Yates in a statement.
Braddy is not eligible for parole.
Tax Resolution Services offers a free tax relief consultation. Call 1-866-IRS-PROBLEMS (1-866-477-7762) today or fill out our online tax consultation form to get you on the road to tax relief today!
Tags: certified tax resolution specialist, delinquent tax returns, expert tax help, filing fraudulent tax return, Free Tax Consultation, hiding income from the IRS, innocent spouse tax relief, irs problems, Offer in Compromise, professional tax help, tax attorney, tax evasion, tax relief, tax resolution services
Posted in IRS Tax Cases, IRS Times and Inquirer, IRS help, Innocent Spouse, Offers in Compromise, Seeking Professional Tax Help | 1 Comment »
Sunday, May 9th, 2010
April 15th, tax day, has passed and if you have not filed your tax return, it’s not too late to do a delinquent tax return, also known as late tax filing, today! Our team of Certified Tax Resolution Specialists advise you to file your delinquent tax return the sooner, the better. Five reasons to file a delinquent tax return: you can go to jail for not filing a tax return, you can incur a 25% penalty for not filing your taxes, you can incur additional penalties for not filing your taxes, you can be subject to an increased tax bill if the IRS prepares your taxes for you, and you must have filed all taxes to be eligible for any income tax relief. And we should add that late tax filingis your right, no matter how late it is. Filing false tax returns on behalf of others (and most likely unbeknownst to them, too) is not your right! One false tax return filed is a serious penalty and, as we find out in the article below, filing many false tax returns can land you in jail for life!
A Tarzana, Calif., woman has pleaded guilty to federal tax charges, admitting that she filed more than 200 false tax returns with the IRS seeking more than $1.3 million in refunds based on fraudulently claimed First-Time Homebuyer Credits and Earned Income Tax Credits.
Kashawn Monique Savery, a real estate broker who until recently lived in Reseda, pleaded guilty to all 10 counts of making false claims.
The IRS began investigating when the fraud detection center observed suspicious activity, including a group of 231 tax returns for the 2008 tax year that sought more than $1.3 million in refunds. The majority of the suspicious tax returns were filed from a computer at Savery’s condominium in Reseda.
Savery pleaded guilty to fraudulently filing or causing to be filed 10 tax returns, five of which sought refunds based on the Earned Income Tax Credit, and five of which sought refunds based on the First-Time Homebuyer Credit. The criminal information alleges that the 10 tax returns sought nearly $68,000 in refunds. During a hearing, Savery admitted to being involved in more than 200 tax returns that sought more than $1.3 million in fraudulent refunds.
Savery faces 50 years in prison and a $2.5 million fine.
Don’t fear the IRS if you haven’t filed your taxes! Tax Resolution Servicescan help you with late tax filing. Tax Resolution Serviceshas prepared more than 25,000 federal and muli-state tax returns for clients over the past few years alone and we are here to help you with your delinquent tax return! Fill out the online form for a free tax consultation today and get started on the road to tax relief!
Tags: certified tax resolution specialists, delinquent tax return, filing delinquent tax return, filing false tax returns, Free Tax Consultation, late tax filing, professional tax consultation, tax day, tax help for filing late taxes, tax resolution services, unfiled tax returns
Posted in IRS Tax Cases, IRS Times and Inquirer, Seeking Professional Tax Help, Unfiled Returns - Delinquent Tax Returns, Working with the IRS | 1 Comment »
Thursday, April 29th, 2010
Now that tax day has passed, some of you may be hearing from the IRS for an IRS tax audit. Did you know that how you answer the questions in an IRS tax audit can dictate your fate? IRS tax audits are designed to catch those that have been evading taxes or trying to defraud the IRS. If you are being audited by the IRS, hiring a professional tax attorney is in your best interest. Tax Resolution Services is highly skilled at tax audit representation – collectively having over 100 years in experience in IRS tax audits – and we work hard for what is in your best interest, whether you are an individual tax payer or a corporation. Unfortunately for those who willingly and knowingly choose to defraud the IRS and evade taxes, like Charlene Hughes in the article below, we cannot help.
Charlene Hughes of Waynesboro, Ga., was indicted by a federal grand jury sitting in Savannah and charged with conspiracy to defraud the United States.
The indictment arises out of a joint investigation by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation into Hughes’ alleged involvement with more than 25 fraudulent tax returns which falsely claimed more than $90,000 in refunds between April 2006 and August 2007.
The indictment alleges that these fraudulent tax returns contained false Form W-2 information, including false employers and wages.
“As we near the height of this year’s tax filing season, those who might consider preparing false tax returns should be aware of the severe consequences of doing so,” U.S. Attorney Edward J. Tarver said in a statement.
“This indictment emphasizes that the IRS, the FBI and the United States Attorney’s Office will aggressively pursue anyone who attempts to defraud America’s tax system.”
If convicted, Hughes faces up to 10 years in prison and a $250,000 fine.
Certified Tax Resolution Specialists, CPAs, and Tax Attorneys make up the team at Tax Resolution Services. Help with your IRS tax audit (as well as many other tax relief services) is as easy as calling 1-866-IRS-PROBLEMS for a free tax consultation.
Tags: certified tax resolution specialist, Free Tax Consultation, IRS audit, irs problems, IRS tax audit, IRS Tax Cases, professional tax representation, professional tax services, tax attorney, tax audit, tax evasion, tax relief services, tax resolution services
Posted in IRS Tax Cases, IRS Times and Inquirer, IRS tax audit | No Comments »
Friday, March 26th, 2010
IRS Payment Plans – also know as Installment Agreements – allow the taxpayer to pay tax liabilities over time. If you owe money to the IRS and feel that your tax debt is overwhelming, seeking professional tax services is a smart idea. Tax Resolution Services can help a taxpayer negotiate an IRS payment plan with low monthly payments that sets you on the path to financial freedom. Filing false tax returns to evade taxes, even with the blessings of your pastor, is only going to set you on the path to prison!
A religious leader in Vancouver, Wash., was sentenced to five months in prison for aiding the preparation of a false tax return.
Until last September, Maximo Garza, 47, was the pastor for Victory Outreach Church of Portland, a non-denominational church which has operated in Portland, Ore., for more than 15 years.
During his plea hearing, Garza admitted he provided false expense invoices which purported to reflect public relations and other services provided by Victory Outreach Church to William Thompson, who was then operating a mail-order divorce service using the name Hallwood Inc. Thompson used the false invoices to take expense deductions on tax returns filed by Hallwood in order to fraudulently reduce his tax liability.
Between 2001 and 2003, Garza provided invoices reflecting a total of $735,441 in false business expenses. Thompson agreed to let Garza keep approximately 10% of the expense amounts.
Thompson pled guilty to tax evasion and was sentenced to a prison term in 2007.
If you would like to learn more about IRS payment plans, and other tax services such as Offer in Compromise, to reduce your tax debt, fill out Tax Resolution Services online form for a free tax consultation.
Tags: conspire to commit tax fraud, filing false tax return, fraudently reduce tax liability, Free Tax Consultation, IRS installment agreement, IRS payment plan, Offer in Compromise, pay tax liabilities, preparing false tax return, professional tax services, reduce tax debt, tax debt overwhelming, tax evasion, tax resolution services
Posted in IRS Installment Agreements, IRS Tax Cases, IRS Times and Inquirer, Seeking Professional Tax Help | No Comments »
Friday, January 8th, 2010
Some taxpayers make the mistake of believing that if they can get away with tax evasion, then it’s worth the risk to save the money. However, as the IRS steps up its game to collect more taxes, it’s beginning to get more risky and less worthwhile to do so.
A common problem I hear from my clients is that they want to pay their taxes but don’t have enough money. As a result, they sit on their unfiled tax returns until they receive a letter from the IRS. What many people don’t know is that you can always file a late tax return and a late tax return is always better than a false tax return or an unfiled one.
CCH (http://intelliconnect.cch.com) reports:
Individual Guilty of Aiding the Filing of a False Tax Return; Elements of Offense Proved Beyond a Reasonable Doubt
An individual was not entitled to an acquittal with respect to his indictment for aiding the filing of a false tax return because the government proved, beyond a reasonable doubt, the essential elements of the offense under Code Sec. 7206(2). The evidence showed that the individual was actively involved in the organization, promotion and sale of a tax avoidance system that was the subject of an ongoing IRS investigation and that he encouraged his clients to file tax returns that fraudulently omitted income and included improper and illegal deductions. He did not have a good faith belief in the legality of the system and was aware of a taxpayer’s duty to file truthful individual tax returns; therefore, he acted willfully when he intentionally aided and assisted others in filing returns that were false as to material matters.
By B.K. Wasson
The average client at Tax Resolution Services has four to eleven years of unfiled tax returns. Yet, there are still many tax resolution options for individuals who owe the IRS enormous amounts in back taxes. You can talk to your tax attorney or Certified Tax Resolution Specialist to see if you can negotiate an IRS installment agreement or payment plan.
Another good thing to know is that if you owe the IRS back taxes and can’t afford to pay it come April 15, 2010, you can file your returns and send a money order or cashiers check for $10.00. This takes care of two important things: first, it takes the large 25% failure to file penalty off your shoulders; and second, it creates a computerized record at the IRS showing that you filed on time and you made a good faith effort to pay some of that money you owe. This will lessen your IRS penalties and make your negotiations for a tax settlement easier later on.
Don’t be foolish to think that the IRS won’t find you if you file a false tax return. Get tax help today by calling our office at 1-866-477-7762 for a free tax resolution consultation or visit www.taxresolution.com.
Tags: Back Taxes, CCH, delinquent tax returns, delinquent taxes, FALSE TAX RETURNS, Free Tax Consultation, IRS debt, IRS help, irs problems, Michael Rozbruch, Offer in Compromise, payment plan, tax attorney, tax cheat, tax evasion, tax help, tax resolution, tax resolution services, Tax Tips, unfiled tax returns
Posted in Back Taxes, Expert Help From Tax Attorney, Filing Unfiled Returns and Replacing Substitute for Ret, IRS Installment Agreements, Offers in Compromise, Seeking Professional Tax Help, Tax news and tips, tax help | No Comments »
Tuesday, January 5th, 2010
Many taxpayers facing the tough year of 2009 may find themselves unable to pay their full taxes in 2010 or unsure about how to resolve the back taxes that they already owe. This is why it’s a pleasure for me to sit down with people like Scott Mason of KROQ to share some free tax help advice to listeners.
Right now we are seeing some real desperate situations where many people can’t afford to hire a tax attorney or Certified Tax Resolution Specialist, which is not a good thing. Many taxpayers think they can negotiate an IRS installment agreement with the IRS themselves. The problem in 90% of these cases is that the taxpayer fails to get the 433D form, which is the formal agreement that the IRS inputs into the computer saying they have an installment agreement. So the next thing you know, your wages are getting garnished with no record of an installment agreement with the IRS.
Don’t be one of these people. There are plenty of tax resolution options that are available to you which will save you from severe IRS penalties and debt. Below are some useful tax help answers to questions that may be haunting taxpayers just like you who are facing the upcoming tax season:
Listen to the full interview for more tax help tips.
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Filing Exceptions for Military Personnel:
Scott: Are there filing exceptions for those deployed in the military?
MR: If they are deployed overseas there are extensions from 60-120 days. They are still US resident citizens and do need to file on time or by the agreed extension dates. The sad thing for many is that they come back to the states, cant’ get employment and are not able to pay their taxes, which will result in IRS penalties.
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How to Avoid IRS Filing Problems:
Scott: What one can do to make sure they don’t have a problem come April 15?
MR: Be organized, have knowledge, budget and be a better money manager. It’s never a bad idea to see a professional to do a tax projection for year end. The rule of thumb is: accelerate deductions and defer income.
For those who are self employed, a good principle to follow is to put away almost 30% of every dollar for FICA, Social Security, and income tax in a special account called a “tax” account and make quarterly payments from that.
If you are a wage earner, make sure you withhold properly. Many claim too many exemptions. As long as you fill out a W4 with 9 exemptions and sign it the IRS will not be alerted to it. If you have over 9 exemptions, then the IRS will be alerted to it so be prepared to back up your exemptions with substantial evidence.
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Reporting Activities Pertaining to Prop 215:
Jim: In regards to reportable activity specifically pertaining to Prop 215. How can I recover the cost of growing medical marijuana. What has to be reported?
MR: Any activity that you engage in whether its legal or illegal or for profit you have to report it. Gambling and prostitution included (this is how they got Al Capone).
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How Far Back Can the IRS Go:
If you haven’t filed your tax returns, the IRS can go back to day one. If you filed, the IRS has 3 years from the filing date to audit you. If you had a 25% under-reporting of income, they can go back 6 years. However, for fraudulent activities such as your failure to disclose a foreign bank account, the IRS can go back for as long as they want. If you are in IRS trouble for failing to disclose a foreign bank account, we have a special division for offshore bank account defense that is here to help you.
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Dealing with Overwhelming IRS Debt:
Paul: Is it possible to just go to jail or do community service instead of paying your taxes if the amount of what you owe is just ridiculous?
MR: You can’t go to jail for owing money but you can go for not filing. Failure to file is a misdemeanor. You may be a good candidate for an Offer in Compromise (OIC). There are solutions to every problem. Forget about having anything else in your name for the rest of your life if you don’t deal with it.
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The TRS Success Rate:
Scott: You have a really high success rate. What do you call success?
MR: We call success a couple of things. Number one, we probably turn away 2 to 3 times as many people as we retain. That’s why we have the highest success rate. The success rate is twofold, one is an offer in compromise success rate and number two and permanent resolution success rates. If they don’t qualify for a “tax debt settlement) which is an Offer in Compromise, we will get them an IRS installment agreement that they can live with and be done with it in a few years. The IRS right now is allowing first year delinquent penalties removed as long as you have been a good boy or girl in the past.
Some final tax help tips: If you do owe money for 2009 and can’t afford to pay it come April 15, 2010, file your returns and send a money order or cashiers check for $10.00. This does two things: #1 it takes the huge 25% failure to file penalty off the table and #2 it creates a computerized record at the IRS showing that you filed on time and you made a good faith effort to pay some of that money you owe. This will keep you out of jail!
You can seek professional tax help from a tax attorney, Certified Tax Resolution Specialist, or CPA from Tax Resolution Services. We are here to help you settle your IRS debt–call us today at 1-866-477-7762 for a free tax resolution consultation or visit www.taxresolution.com
Tags: Back Taxes, FBAR, foreign bank accounts, Free Tax Consultation, income tax relief, Installment Agreement, Michael Rozbruch, Offer in Compromise, offshore bank accounts, offshore tax evasion defense, Penalty Abatement, tax attorney, tax evasion, tax expert, tax help, tax relief, tax resolution, tax resolution services, Tax Tips
Posted in Back Taxes, Expert Help From Tax Attorney, IRS Installment Agreements, IRS help, Offers in Compromise, Offshore Tax Settlements, Seeking Professional Tax Help, Tax news and tips, Unfiled Returns - Delinquent Tax Returns, income tax relief, tax help | No Comments »
Sunday, December 6th, 2009
I would hope that everyone knows that filing a late, or delinquent, tax return is a much better choice than filing a false, fraudulent tax return. Not everyone may know, however, that it is okay to file a delinquent tax return, no matter how late it is! Tax Resolution Services, who has prepared well over 25,000 federal and multi-state tax returns for our clients, can help you file your delinquent tax return today! Better late than never! Or, as we’d like to say at Tax Resolution Services, better a delinquent tax filing than a fraudulent one – as these two men from Nebraska are about to find out!
Two men from Lincoln, Neb., were indicted by a federal grand jury on tax fraud charges that could put them behind bars for 10 years.
Christian Quevedo, 27, and Carlos Carpio, 27, both of Lincoln, were indicted for conspiracy to defraud the United States by filing false claims for income tax refunds totaling $121,936.00 for the 2005 and 2006 tax years.
According to the indictment, the claims for tax refunds were based on false income tax returns filed by individuals recruited by Quevedo and Carpio. The returns misrepresented the true identity of the employers of the individuals on whose behalf the tax returns were filed and also inflated income and federal income tax withholding amounts of the individuals.
The false returns were based on false Forms W-2s created by the defendants that contained fabricated names of employers, income and federal withholding amounts. According to the indictment, Quevedo and Carpio caused the inflated income tax refunds to be paid by the IRS to them. They kept most of the money and paid a small portion to the individuals on whose behalf the fraudulent income tax returns were filed.
In addition to prison time, each man could receive fines of up to $250,000.
Let Tax Resolution Services help you with delinquent tax filing! Having a tax professional in your corner makes finding tax relief much easier! Get started today by filling out the free tax consultation form online.
Tags: delinquent tax return, false income tax returns, filing false claims for tax refund, filing false federal tax return, filing late taxes, fraudulent tax returns, Free Tax Consultation, inflated income tax refunds, late tax filing, tax evasion, tax fraud, tax professional, tax resolution services
Posted in IRS Tax Cases, IRS Times and Inquirer, Tax Scams, Unfiled Returns - Delinquent Tax Returns | No Comments »
Friday, October 23rd, 2009
The IRS is set to audit many more returns in 2009 and 2010 due to abuses by taxpayers of the first time home buyer tax credit. The first-time homebuyer tax credit is a tax break of up to $8,000 for qualified home sales before December 1, 2009.
Not everyone qualifies for this credit and I’ve also blogged about common misconceptions about the first time homebuyer tax credit. Knowing the rules and filing an accurate tax return is important if you want to avoid tax audits and stay out of IRS trouble!
While the senate is moving to extend and expand eligibility for the homebuyer tax credit to encourage more Americans to enter the real estate market, the Internal Revenue Service is facing significant challenges in verifying eligibility for program.
New legislation will help the IRS prevent abuse of the credit and ensure that the credit is administered accurately to issue a timely refund of the credit and to protect financial resources.
One common abuse is taxpayers putting home titles in their children’s names, however the new legislation would require taxpayers to be age 18 or older to claim the credit as well as proof that the new home was acquired their primary residence.
CCH (http://tax.cchgroup.com) reports:
Ways & Means Subcommittee Hearing on Abuses in First-Time Homebuyer Tax Credit Results in Proposed Legislation, IRS Promise of Increased Exams
In response to a Treasury Inspector General for Tax Administration (TIGTA) report on IRS deficiencies in the administration of the first-time homebuyer credit (FTHBC), House Ways and Means Oversight Subcommittee Chairman John Lewis, D-Ga., held a hearing on credit abuses on October 22, that ended with the introduction of a bill to remedy the problem. The TIGTA report, “The Internal Revenue Service Faces Significant Challenges in Verifying Eligibility for the First-Time Homebuyer Credit” (Reference Number: 2009-41-144), was made available to the subcommittee on September 29 and was released to the public on October 22, in conjunction with the hearing.
The Treasury Inspector General for Tax Administration J. Russell George, Deputy IRS Commissioner for Services and Enforcement Linda Stiff, and Director of Strategic Issues for the U.S. Government Accountability Office James White all testified during the hearing on the many issues plaguing the popular tax benefit.
TIGTA Audit Report
George began his testimony by describing the results of TIGTA’s recently released audit report. The report acknowledges that the IRS established computer programs to control abuses of the FTHBC, including rejection of a return where the taxpayer had not filed a Form 5405, First-Time Homebuyer Credit. However, TIGTA discovered many instances of noncompliance and potential fraud within sampled areas.
Among its findings, TIGTA found that the IRS did not request any further documentation in addition to a taxpayer’s income tax return to verify whether a claimant was actually eligible for the credit. TIGTA found approximately 74,000 instances of prohibited prior home ownership among taxpayers claiming the credit. The audit also uncovered 580 taxpayers under age 18 claiming the credit, with the youngest at age four. While possibly legitimate, this caused suspicion among TIGTA’s auditors that parents were using tax reporting on behalf of their children to avoid the credit’s adjusted gross income limitations.
George noted that TIGTA is currently working toward releasing an audit report on related-party transactions and the FTHBC in the near future.
TIGTA also found instances of taxpayers claiming the lower $7,500 amount of the FTHBC for a home purchased in 2009 and legally subject to the $8,000 credit. The IRS is not contacting these taxpayers; instead, it is assuming that these taxpayers are aware of the additional $500 available and that they would amend their returns if necessary. Additionally, most of these taxpayers, TIGTA discovered, were not correctly coded in the IRS’s computer systems to indicate that they actually purchased the home in 2009. As a result, these taxpayers could be listed within the IRS’s system as having to repay the credit under the 2008 rules, when they did not actually have to do so under the 2009 version of the FTHBC.
Further, George described how legislation is needed to give the IRS “math error authority” in disallowing faulty claims for the FTHBC. As explained by White, Congress may grant the IRS authority to identify calculation errors and check for obvious noncompliance within specified areas of an income tax return. This provides an administrative benefit to the IRS because it can catch the filing errors during its tax return processing and is not required to wait until it brings an examination to address the issue.
Stiff reported that the IRS has not required submission of additional documents along with taxpayers’ income tax returns claiming the FTHBC specifically because the IRS lacks math error authority in this area. Without math error authority, she explained, such a submission would not have made a difference in the Service’s procedures. The IRS would have simply audited taxpayers with suspicious claims for the FTHBC and requested the information from additional documents at that time.
IRS Response
Despite several auditor comments raising several concerns, the TIGTA report stated that IRS management agreed to TIGTA’s recommendations to fix the problems raised by the report in connection with the administration of the FTHBC. Stiff also acknowledged in her testimony that a minimum-age requirement for the credit, math error authority, and third-party reporting requirements could all assist the IRS in more effectively administrating the FTHBC. However, she reminded the subcommittee that there is always potential for both fraud and errors whenever a refundable tax credit is enacted and that the IRS had, in fact, modeled its efforts to prevent abuses of the FTHBC on its other compliance programs. She also reported that the IRS is continuing to undertake compliance checks to identify and select for audit those FTHBC claims with the highest risk of noncompliance or possible fraudulent activity. According to Stiff, the IRS has identified “over 160 potential schemes resulting in scores of criminal investigations.”
Stiff also pointed out that congressional approval of the IRS’s fiscal year 2010 budget would go a long way toward improving administration of the area as well. She pointed out that the Service’s deficit in resources and administration of two different FTHBCs during the middle of the 2008 filing season played a large role in the issues presented by TIGTA.
Resulting Bill
After receiving testimony at the subcommittee meeting, Lewis introduced a responding bill. The legislation addresses specific problems raised at the hearing. It would require a taxpayer to be age 18 or older in order to claim the credit. It would also require taxpayers to provide additional information along with their income tax returns to prove they actually acquired the income for their primary residence, such as a Form HUD-1, U.S. Department of Housing and Urban Development Settlement Statement. Also, the IRS would have authority to look to prior-year returns and determine whether a taxpayer is eligible for the credit. Although no language is yet available for the proposal, sources told CCH that the bill would also grant the IRS math error authority on the issue of the FTHBC.
“This legislation will help ensure that the IRS has the tools and authority it needs to prevent abuse of this credit,” Lewis stated in a press release. “We must ensure that we are administering the credit accurately and strike a balance between issuing a timely refund of the credit and protecting federal resources.”
By Torie Cole, CCH News Staff
Tags: filing accurate tax returns, first time homebuyer credit, IRS tax audits, IRS tax breaks
Posted in Tax news and tips | 4 Comments »
Monday, October 12th, 2009
Tax fraud is committed every day. One criminal act that seems particularly popular, that I’ve blogged about again and again, is filing false federal tax returns. People do it for various reasons – I suspect that two of the top reasons would be to avoid paying taxes or to get a substantial tax return from the IRS, lining their pockets – and offshore bank accounts – with money. But what good is money when you are in prison? Wonder how this Miami woman would answer that question?!
A Miami woman was sentenced to 60 months in prison after being convicted by a jury on tax fraud charges.
Maritza Valiente, 41, was convicted on all 11 counts against her relating to a tax fraud scheme that Valiente and others committed in 1999 and 2000. Valiente and three co-defendants were initially indicted in 2004, but Valiente was not located until 2008.
According to trial evidence, Valiente and her co-conspirators created false W-2s claiming wages and withholdings from fiscal year 1999 in the names of bogus employees of Valiente’s company, United Mortgage Financing. They used the false W-2s and other information to prepare fraudulent tax returns claiming refunds for the fictitious employees. Then, in early 2000, Valiente and her co-conspirators filed the false tax returns with the IRS and obtained refund-anticipation loan checks in the names of the fictitious employees. In sum, more than 30 false tax returns were filed with the IRS as part of the scheme, causing the IRS to issue more than $100,000 in fraudulent refunds.
Filing false federal tax returns is not a good idea, as illustrated above. Some people may do it because they are desperate to get their taxes filed by the April 15th due date. Did you know that the IRS accepts delinquent tax returns? No matter how late, you have a right to file your taxes - and if you need help with a late tax filing Tax Resolution Services team of tax attorneys and IRS specialists can help you. Better late and honest, than never or dishonest! Free tax consultation available.
Tags: delinquent tax return, filing false federal tax returns, filing fraudulent tax returns, filing late tax returns, fraudulent IRS refunds, fraudulent tax returns, Free Tax Consultation, IRS specialist, late tax filing, tax attorney, tax fraud, tax help by tax attorney, tax help by tax professionals, tax resolution services, tax scheme
Posted in IRS Tax Cases, IRS Times and Inquirer | No Comments »
Wednesday, September 30th, 2009
Lately, the rich and the famous who have been creatively evading taxes have been transformed by the IRS into the financially desolate and infamous.
The recent guilty plea by Joe Francis, founder of the soft-porn empire “Girls Gone Wild” demonstrates how omitting nearly $563,000 in interest tax can turn into 301 days in jail.
LA Times reports:
“Girls Gone Wild” founder Joe Francis pleaded guilty Wednesday to filing false tax returns and will avoid further jail time in a tax case that spanned two states and several years.
Francis entered the pleas to two misdemeanor counts of filing false tax returns and one count of bribing Nevada jail workers in exchange for food.
An agreement with prosecutors calls for Francis, who has built a soft-porn empire filming and marketing videos of young women, to pay $250,000 in restitution and receive credit for jail time served.
Francis was indicted by a federal grand jury on tax evasion charges in 2007 and has spent 301 days in jail. U.S. District Judge S. James Otero accepted the plea and delayed sentencing until Nov. 6.
In the agreement, Francis acknowledged omitting nearly $563,000 in interest income on his 2003 tax return. Prosecutors initially alleged Francis took more than $20 million in fraudulent deductions in 2002 and 2003 on such items as a Porsche and a Mexican home where he entertained celebrities.
Cheating the IRS on tax payments will end up costing you more in the long run. Don’t end up like Joe–make sure that you file your taxes correctly in order to avoid an IRS audit and severe tax penalties. If you are unsure of how to resolve your tax problems, get tax help now before it’s too late!
If you are facing back taxes and potential severe IRS penalties, you are not alone. You have a choice to fight it with a well-qualified tax attorney, CPA, or certified tax resolution specialist. Call Tax Resolution Services at 1-866-IRS-PROBLEMS (1-866-477-7762) today or visit our website at www.taxresolution.com
Tags: "Girls Gone Wild", Back Taxes, FALSE TAX RETURNS, IRS penalties, Joe Francis, tax attorney, tax evasion, tax evasion penalties, tax help
Posted in Back Taxes | No Comments »
Monday, August 17th, 2009
An Essex County, N.J., man who sells watches and other merchandise through Internet sites such as eBay pleaded guilty to filing a fraudulent tax return.
Jaime Virtucio, 59, of Bloomfield, pleaded guilty to subscribing to a false personal tax return. At his plea hearing, Virtucio admitted that he received payment from Internet sources, including PayPal and CPS Merchant Services, directly into bank accounts he controlled in return for merchandise he sold over the Internet.
Virtucio admitted that in April 2004, he signed and filed a 2003 tax return that stated his taxable income was approximately $18,307. Virtucio admitted that he actually had received and failed to report additional taxable income of about $106,559 that he gained through the sale of watches and other merchandise.
Virtucio also admitted that he filed false personal income tax returns with the IRS for 2004 and 2005, which understated the amount of taxable income he received for those calendar years. Virtucio admitted that for tax years 2004 and 2005, he failed to report a total of about $122,498 in additional taxable income on those tax returns.
He faces up to three years in prison and a fine of up to $100,000.
I’ve blogged about underreporting income before and every story seems to have the same ending: prison time and a fine. If you are a business operator and are feeling overwhelmed by taxes, seek professional tax help now! Tax Resolution Services is a nationwide professional tax solution company with a team of tax attorneys and IRS specialists who can help you find tax relief. Free tax consultation – sign up on our website or call us at 866-IRS-PROBLEMS (866-477-7762).
Tags: Failing to report income, filing false tax return, filing fraudulent tax return, free professional tax consultation, Free Tax Consultation, irs problems, IRS specialists, professional tax help, tax attorney, tax cheat, tax evasion, tax relief, tax resolution services, tax solution, underreporting income
Posted in IRS Tax Cases, IRS Times and Inquirer, Unfiled Returns - Delinquent Tax Returns | No Comments »
Tuesday, August 11th, 2009
Although there never was a “good” time to cheat on taxes, now is worse than ever for taxpayers and tax preparers to file fraudulent tax returns. With the IRS getting more funding and 800 more agents to collect taxes, taxpayers and CPAs who deliberately report fraudulent information on tax returns will be hit with severe IRS penalties.
If the IRS detects and proves beyond a reasonable doubt that fraudulence was deliberate, both the tax preparer and the taxpayer will be liable for IRS penalties.
CCH (http://tax.cchgroup.com) reports:
CPA Convicted of Willfully Aiding and Assisting in Preparation of Materially False Returns
A CPA was convicted of willfully aiding and assisting in the preparation of materially false income tax returns for the president and 100-percent owner of a mortgage brokerage firm and his wife. The government proved beyond a reasonable doubt that the CPA prepared the couple’s tax returns and willfully failed to report as taxable income business funds used by the couple for their personal purposes, even though he was aware that the owner received officer’s compensation from the firm, that the firm’s business funds were used to pay the couple’s personal expenditures and that funds withdrawn by the owner for his personal expenses constituted shareholder distributions that were taxable to the couple. Despite such knowledge, he willfully failed to include the amounts as income on the couple’s individual income tax returns. His contention that he believed the owner to have acquired a substantial basis in the corporation was rejected. He knew, or should have known, that the owner lacked basis in the corporation to take any shareholder distributions without declaring them as capital gains on his tax returns.
Protect yourself against fraud by double-checking your information on your tax returns before signing them off. Once your signature is on the return, it legally binds you to the information presented (whether they were fraudulent or not).
If you do find yourself in trouble with the IRS, you may get help from our specialized staff of tax attorneys, CPAs, EAs and tax professionals at TRS. Visit Tax Resolution Services for a free income tax relief consultation or call us at 866-IRS-PROBLEMS (1-866-477-7762).
Tags: Back Taxes, failing to file federal tax return, false tax return, FALSE TAX RETURNS, filing false tax return, Free Tax Consultation, IRS audits, tax attorney, tax cheat, tax cheats, tax debt, tax evasion, tax expert, tax fraud, tax lawyer, Tax Tips, unfiled tax returns
Posted in Tax news and tips | 1 Comment »
Thursday, July 23rd, 2009
Georgia resident Yolanda Canty and Jacqueline Kier pleaded guilty to conspiracy to defraud the government following an IRS investigation that discovered their fraudulent tax-refund scheme.
The pair was involved in a scheme to file false tax returns based on fabricated W-2 forms in their own names and in the names of others.
Most of the “taxpayers” had no knowledge of the returns being filed in their names.
They would persuade individuals to provide them with their names, Social Security numbers and dates of birth. The defendants would use this information to create false W-2 forms in the name of actual employers who did not employ the individuals.
The tax returns would be electronically filed and requests made for refund-anticipation loans; then the refunds would be sent by direct deposit to a bank account which was controlled by the defendants.
According to the IRS, the estimated loss from the conspiracy totaled $192,529.
Canty and Kier face up to 10 years in prison and a fine of up to $250,000.
Tax fraud always catches up to you! I’ve blogged before about the penalties you could face for filing false tax returns. The IRS takes their job seriously, as you can see in the above article. Taxes can seem overwhelming and filing false tax returns is NOT the way to earn extra money! If you need tax relief, our professional tax attorneys and IRS specialists can help you today. Tax Resolution Services offers a free tax consultation – fill out the online form or call us at 1-866-IRS-PROBLEMS today!
Tags: conspiracy to defraud, defraud government, fabricated W2 forms, false W2 forms, filing false tax returns, Free Tax Consultation, tax attorneys, Tax Conspiracy, tax fraud, tax help, tax refund conspiracy, tax relief, tax resolution services, tax specialists
Posted in IRS Tax Cases, IRS Times and Inquirer | No Comments »
Tuesday, July 14th, 2009
The IRS considers the assistance of filing false tax returns a severely criminal and punishable act. The IRS is able to utilize charts and summary data of national tax return statistics to determine the “normalcy” of a tax return. If your tax return is substantially higher than the national average, you will be a likely suspect for the IRS to investigate. If found guilty, you will be penalized by the IRS for filing fraudulent tax returns-whether it’s your own tax return or someone else’s that you’ve assisted with.
CCH (http://tax.cchgroup.com/) reports:
Sentence Imposed for Aiding and Assisting in Preparation of False Returns Reasonable
A sentence imposed on an individual convicted of aiding and assisting in the filing of false tax returns was reasonable. The sentence was within the sentencing guideline range, the trial court adequately considered the sentencing factors and it sufficiently explained the sentence to permit meaningful appellate review.
The admission of testimonial hearsay evidence, which relied on charts and summarizing data of national tax return statistics, did not constitute an abuse of discretion or violate the individual’s due process rights. The charts were required to be prepared by public law and were relevant because they showed that both the average charitable contribution of the tax returns prepared by the individual and the percentage of such returns that resulted in refunds was much higher than the national average. Finally, the individual’s personal tax returns were admissible under the public records exception to the hearsay rule.
If you find yourself in trouble with the IRS due to filing false tax returns, you can still get tax representation to help. It is extremely important to not incriminate yourself deeper by trying to resolve the situation without knowing all the rules and your rights. You can reach out to someone who has experience and expertise in dealing with IRS tax troubles to prove your innocence or abate your penalties.
You may get help from our specialized staff of tax attorneys, CPAs, EAs and tax professionals at TRS. Visit Tax Resolution Services for a free income tax relief consultation or call us at 866-IRS-PROBLEMS (1-866-477-7762).
Tags: delinquent tax returns, failing to file federal tax return, FALSE TAX RETURNS, filing false federal tax return, Free Tax Consultation, i need tax help, IRS audits, IRS help, irs problems, IRS tax problems, Michael Rozbruch, tax advice, tax attorney, tax cheat, tax evasion
Posted in Seeking Professional Tax Help, Taxpayer Advocate, tax help | 3 Comments »
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 on the rise and struggling taxpayers may be desperate for any way out of paying their taxes in this down economy.
But fall victim to one of these scams, and you are certain to find yourself in serious trouble with the IRS.
“Taxpayers should be wary of scams and promises to avoid paying taxes that seem too good to be true,” Acting IRS Commissioner Linda Stiff said. “There is no secret formula that can eliminate a person’s tax obligations. People should be wary of anyone peddling any of these scams.”
With the tax deadline looming, this annual list from the IRS is an important reminder that it’s real easy to get in tax trouble. But it’s also possible to resolve your tax problems, if you help from certified tax resolution experts.
Here are the common tax scams taxpayers need to avoid:
1. Phishing
Phishing is a tactic used by Internet-based thieves to trick unsuspecting victims into revealing personal information they can then use to access the victims’ financial accounts. These criminals use the information obtained to empty the victims’ bank accounts, run up credit card charges and apply for loans or credit in the victims’ names. Phishing scams often take the form of an e-mail that appears to come from a legitimate source. Some scam e-mails falsely claim to come from the IRS. To date, taxpayers have forwarded more than 33,000 of these scam e-mails, reflecting more than 1,500 different schemes, to the IRS. The IRS never uses e-mail to contact taxpayers about their tax issues. Taxpayers who receive unsolicited e-mail that claims to be from the IRS can forward the message to a special electronic mailbox, phishing@irs.gov, using instructions contained in an article titled “How to Protect Yourself from Suspicious E-Mails or Phishing Schemes.” Remember: the only official IRS Web site is located at www.irs.gov.
2. Scams Related to the Economic Stimulus Payment
Some scam artists are trying to trick individuals into revealing personal financial information that can be used to access their financial accounts by making promises relating to the economic stimulus payment, often called a “rebate.” To obtain the payment, eligible individuals in most cases will not have to do anything more than file a 2007 federal tax return. But some criminals posing as IRS representatives are trying to trick taxpayers into revealing their personal financial information by falsely telling them they must provide information to get a payment. For instance, a potential victim is told by phone or e-mail that he or she is eligible for a rebate but must provide a bank account number (or similar information) to get the payment. If the target is unwilling, the victim is then told that he cannot receive the rebate unless the information is provided. Individuals should remember that the only way to get a stimulus payment is to file a 2007 tax return. The IRS urges taxpayers to be extra-vigilant. The IRS will not contact taxpayers by phone or e-mail about their stimulus payment.
3. Frivolous Arguments
Promoters of frivolous schemes encourage people to make unreasonable and unfounded claims to avoid paying the taxes they owe. Most recently, the IRS expanded its list of frivolous legal positions that taxpayers should stay away from. Taxpayers who file a tax return or make a submission based on one of these positions on the list are subject to a $5,000 penalty. The most recent update of the list of frivolous positions includes: misinterpretation of the 9th Amendment to the U.S. Constitution regarding objections to military spending, erroneous claims that taxes are owed only by persons with a fiduciary relationship to the United States, a nonexistent “Mariner’s Tax Deduction” related to invalid deductions for meals and the misuse of the fuel tax credit (see below). The complete list of frivolous arguments is on the IRS Web site at IRS.gov.
4. Fuel Tax Credit Scams
The IRS is receiving claims for the fuel tax credit that are unreasonable. Some taxpayers, such as farmers who use fuel for off-highway business purposes, may be eligible for the fuel tax credit. But some individuals are claiming the tax credit for nontaxable uses of fuel when their occupation or income level makes the claim unreasonable. Fraud involving the fuel tax credit was recently added to the list of frivolous tax claims, potentially subjecting those who improperly claim the credit to a $5,000 penalty.
5. Hiding Income Offshore
Individuals continue to try to avoid paying U.S.taxes by illegally hiding income in offshore bank and brokerage accounts or using offshore debit cards, credit cards, wire transfers, foreign trusts, employee leasing schemes, private annuities or life insurance plans. The IRS and the tax agencies of U.S. states and possessions continue to aggressively pursue taxpayers and promoters involved in such abusive transactions.
6. Abusive Retirement Plans
The IRS continues to uncover abuses in retirement plan arrangements, including Roth Individual Retirement Arrangements (IRAs). The IRS is looking for transactions that taxpayers are using to avoid the limitations on contributions to Roth IRAs. Taxpayers should be wary of advisers who encourage them to shift appreciated assets into Roth IRAs or companies owned by their Roth IRAs at less than fair market value. In one variation of the scheme, a promoter has the taxpayer move a highly appreciated asset into a Roth IRA at cost value, which is below annual contribution limits even though the fair market value far exceeds the amount allowed.
7. Zero Wages
Filing a phony wage- or income-related information return to replace a legitimate information return has been used as an illegal method to lower the amount of taxes owed. Typically, a Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 is used as a way to improperly reduce taxable income to zero. The taxpayer also may submit a statement rebutting wages and taxes reported by a payer to the IRS. Sometimes fraudsters even include an explanation on their Form 4852 that cites statutory language on the definition of wages or may include some reference to a paying company that refuses to issue a corrected Form W-2 for fear of IRS retaliation. Taxpayers should resist any temptation to participate in any of the variations of this scheme.
8. False Claims for Refund and Requests for Abatement
This scam involves a request for abatement of previously assessed tax using Form 843, “Claim for Refund and Request for Abatement.” Many individuals who try this have not previously filed tax returns. The tax they are trying to have abated has been assessed by the IRS through the Substitute for Return Program. The filer uses Form 843 to list reasons for the request. Often, one of the reasons given is “Failed to properly compute and/or calculate Section 83-Property Transferred in Connection with Performance of Service.”
9. Return Preparer Fraud
Dishonest tax return preparers can cause many problems for taxpayers who fall victim to their schemes. These scam artists make their money by skimming a portion of their clients’ refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. Some preparers promote the filing of fraudulent claims for refunds on items such as fuel tax credits to recover taxes paid in prior years. Taxpayers should choose carefully when hiring a tax preparer, especially one who promises something that seems too good to be true.
10. Disguised Corporate Ownership
Some people are going as far as forming domestic shell corporations in certain states for the purpose of disguising the ownership of a business or financial activity. Once formed, these anonymous entities can be used to facilitate underreporting of income, non-filing of tax returns, engaging in listed transactions, money laundering, financial crimes and even terrorist financing. The IRS is working with state authorities to identify these entities and to bring the owners of these entities into compliance.
11. Misuse of Trusts
For years, unscrupulous promoters have urged taxpayers to transfer assets into trusts. They promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes. However, some trusts do not deliver the promised tax benefits. As with other arrangements, taxpayers should seek the advice of a trusted professional before entering into a trust.
12. Abuse of Charitable Organizations and Deductions
The IRS continues to observe the misuse of tax-exempt organizations. Misuse includes arrangements to improperly shield income or assets from taxation, attempts by donors to maintain control over donated assets or income from donated property and overvaluation of contributed property. In addition, IRS examiners are seeing an upturn in instances where taxpayers try to disguise private tuition payments as contributions to charitable or religious organizations.
** If you are in trouble with the IRS and need tax help, contact our specialized staff of tax attorneys, CPAs, EAs and tax professionals. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
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Posted in Tax news and tips | 3 Comments »
