At the first official meeting of the National Association of Tax Debt Resolution Companies (NATDRC) in Washington D.C., May 20-21, we will be discussing the regulation of companies utilizing deceptive advertising claims and misleading trade practices that solicit unsuspecting consumers (by advertising on the internet, radio, and TV) believing that they are hiring a legitimate tax professional—i.e., an attorney, CPA, or Enrolled Agent—to represent them before the IRS/State. Nothing can
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Enjoy this bit of tax humor today!

The IRS just released a video entitled Employee or Independent Contractor? that gives guidance to unsure employers interested in properly classifying their workers as either an employee or independent contractor. Improper classification can result in steep IRS penalties for both employer and worker with many business owners getting into trouble simply because they don’t know the difference. Understanding this distinction can help a business owner avoid an IRS audit.
The IRS
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A Gatlinburg, Tenn., couple was sentenced for subscribing to false tax returns that resulted in a $550,649.13 tax loss. Kevin Matthew Flannery, 65, received 24 months in prison. Margaret Anne Flannery, 63, received three years of probation and one year of home confinement.
Kevin Flannery pleaded guilty to one count of subscribing a false tax return for M.K.M.K. Associates Inc., doing business as Southland Car and Jeep Rental, for tax year
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News agencies were abuzz about Wednesday’s Supreme Court decision stating the IRS could not use the extended, six-year statute of limitations to collect unpaid taxes from a business, Home Concrete & Supply, LLC in a tax shelter case. Robert Wood of Forbes in his article HUGE Taxpayer Win: Supreme Court Tells IRS 3 Years to Audit Is PLENTY! believes the historic decision regarding this tax shelter case will have a
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A Bergen County, N.J., man was sentenced to 28 months in prison for his involvement in a scheme to file fraudulent tax returns that claimed more than $200,000 in tax refunds.
Stephen Pirrone, 51, of Norwood, N.J., previously pleaded guilty to two counts of an indictment charging him with filing false, fictitious and fraudulent tax returns. According to court records, Pirrone created false W-2 forms for himself and a family member
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Like clockwork, about a week or two after the April 17 tax deadline, I begin fielding taxpayer questions regarding what tax documents to keep and for how long.  A recent article in Forbes by Tax Girl Kelly Phillips Erb entitled How Long Should You Keep Records after Tax Day? provided good guidelines on the subject.
Here are seven basic recommendations for keeping tax documents both individuals and small businesses can follow:
In
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The Internet has enriched our lives and made some things easier, but it didn’t make life simpler especially for those with virtual businesses. I recently wrote an article regarding e-commerce tax issues entitled “The E-Commerce Conundrum: Taxing Virtual Businesses and Their Investors and the Law” explaining that e-commerce businesses not only face IRS tax problems but also pressure from state legislatures to collect and pay state taxes.
Advances in technology including
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Question: I owe a lot in back taxes to the Internal Revenue Service. I’m not sure how I’ll ever get paid up. Plus, it’s been several years, and I think it’s too late for any of the programs you’ve discussed. What can I do?

Answer: First of all, it’s not too late. Actually, it’s never too late. If you owe money to the Internal Revenue Service, you have many options
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Most information dispensed last week was designed to give tax help to last minute filers attempting to complete their tax returns. But news agencies including the IRS are now busy reporting on a new tax story about how rampant IRS identity theft issues are for the Agency itself. Even after the filing deadline, taxpayers are asked to remain vigilant against these tax fraudsters who continue to dupe ordinary citizens. Here
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Adam Lucas, a North Huntingdon, Penn., restaurateur, has been sentenced to six months in prison following his conviction of tax evasion and filing a false return. Lucas owned the Pizza and Gyro Express restaurant and failed to report approximately 50 percent of the gross receipts from his business, as well as underreported payroll and employment taxes. Lucas’ underreporting resulted in a $321,376.77 tax loss.

The owner and operator of a Cincinnati, Ohio, private investigation company known as Business Intelligence Inc. pleaded guilty to one count of tax evasion and one count of conspiracy for skimming more than $1 million from the company in order to avoid paying taxes.
According to court records, between 2003 and 2008, James Simon, 66, skimmed at least $1,047,656.23 from Business Intelligence and failed to report the money as income to
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Happy Friday!
I am relieved that tax day is now just memory for most taxpayers. Those who did not file or request a filing extension here are some tough facts to consider – consumers are legally obligated to file their tax returns; not filing means facing significant IRS tax issues. Failure to file is considered a misdemeanor that can be punishable up to $10,000 per year and one year in
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With Tax Day a recent memory, many Americans still express their frustration with the whole tax process particularly if they find themselves settling tax debt with the IRS.  However, none have been more baffled by the American system of taxation than American citizens who live and work abroad. An International Herald Tribune article by David Jolly entitled Americans, the Tax Man Cometh gives a European glimpse into the plight
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A Connecticut horse farm owner was sentenced to four months in prison and ordered to pay a $5,000 fine after pleading guilty to one count of tax evasion and one count of failure to collect and pay tax.
According to court records, Juliana Cole Weber, 64, of Ridgefield, Conn., owned and operated Stepping Stone Farm Inc., a horse farm offering a range of services.  During the tax years 2001 through 2006,
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