IRS Payment Plans, also known as an Installment Agreement, are available to those who owe taxes and feel they cannot pay their tax liability all at once.  If you are in this situation, it is wise to work with a tax professional, such as Tax Resolution Services’ team of tax attorneys and IRS specialists, who can help you negotiate a low Payment Plan with the IRS.  When people are facing taxes, some people make bad decisions such as trying to write-off personal expenditures as part of their business.  This isn’t smart and usually doesn’t go over well with the IRS, as seen in this article. 

Leonard Widman, 54, of Sherman, Conn., was sentenced to 12 months and one day in prison for failing to pay more than $170,000 in taxes.

Widman owned a sole proprietorship known as Phase II Construction, which performed general contracting services in New York and Connecticut. Phase II Construction had a business checking account into which Widman deposited all business receipts and from which he paid both business and personal expenses.

For tax years 1997 to 1999, Widman filed tax returns and made false statements to IRS employees. In a series of interviews with IRS agents in 2003 and 2004, Widman falsely represented the nature of dozens of expenditures made from the Phase II Construction checking account as legitimate business expense. These expenditures included payments for renovation done to Widman’s home, personal gym equipment, family meals, marina and boat fees, vacations, furniture, and clothing. In addition, Widman told IRS investigators he had received loans and cash gifts from family members and friends, which would be non-taxable sources of income, when in fact he had not.

In all, Widman failed to pay $173,355 in federal income tax and self-employment tax.

Don’t turn to filing false tax returns if you are afraid that you owe more taxes than you can pay to the IRS.  Instead work with a qualified tax professional to find out what your options are.  Tax Resolution Services may help you work out an IRS Payment Plan or you may qualify for the IRS Offer in Compromise program.  If your tax troubles seem unbearable, pick up the phone and call Tax Resolution Services for your free tax consultation today.  1-866-IRS-PROBLEMS.

More Tax Help, IRS News and Tax Relief Tips:

1. Tax Debt is Scary But Evading Taxes is Scarier: Man Gets Prison Sentence for Not Reporting $500K
2. W. Virginia Businessman Gets One Year in Prison for Tax Evasion
3. Oregon Man Charged with Tax Evasion and Enters Plea Agreement with IRS
4. Failure to File Tax Return Plus Impeding IRS Equals Tax Evasion and Prison Time
5. Texas Woman Evades Taxes and Gets Prison Time - Options Like IRS Payment Plan Can Help Ease Tax Burden

Tags: evading taxes, filing false federal tax returns, help with taxes, IRS cheat, IRS installment agreement, IRS payment plan, irs problems, IRS specialist, making monthly payments to the IRS, paying down tax debt, paying the IRS monthly payments, paying the IRS over time, tax attorney, tax cheat, tax evasion, tax professional, tax resolution services, tax troubles

This entry was posted on Monday, November 30th, 2009 at 8:00 am and is filed under IRS Installment Agreements, IRS Tax Cases, IRS Times and Inquirer, Offers in Compromise. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.