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Wednesday, February 24th, 2010
With the April 15th deadline fast approaching, taxpayers need to stay vigilant about what they report (and don’t report) on their tax returns in order to avoid being audited by the IRS or incurring heavy IRS penalties.
CNNMoney released an article recently that outlines several helpful tips for taxpayers to heed in order to prevent getting audited by the IRS. It’s important for taxpayers of all income brackets to realize that with the government strapped for money, there is no “fish too small” for the IRS to scrutinize.
Among the useful tips to keep in mind are:
Prove the legitimacy of your self-employment status
A lot of people may be turning hobbies into income sources in this struggling high-unemployment economy, making the IRS increasingly skeptical of the legitimacy of many home-based businesses. To avoid IRS trouble, keep good documents and records of your business so that you can easily prove your employment status when necessary.
You also need to be careful about what deductions you claim for your own business. The IRS will grow suspicious of abnormally high business expense deductions for things such as travel, entertainment, and meals.
Disclose overseas bank accounts
If we learned anything from the UBS crackdown, it’s that no place is safe from the IRS grasp. Even if you don’t have an enormous amount of money abroad, follow the guidelines and IRS rules for disclosure to avoid heavy penalties.
If you are in IRS trouble for failure to disclose your offshore funds, you can get tax help from a tax attorney, CPA, or Certified Tax Resolution Specialist. Consult our special Offshore Tax Evasion Defense Division for more tax help.
Earning the big bucks? Hire a Pro!
According to CNNMoney, taxpayers who earn more than $200,000 a year are 50% more likely to get audited by the IRS than those who earn less.
“Because high earners have more income and more deductions on their returns, such as businesses, second homes, stock transactions and charitable contributions, the chances of miscalculation or inflation are much greater. The more money a person makes, the more valuable those errors becomes to the IRS.”
The best thing for you to do if you’re a high earner and feel that you may be caught in IRS crosshairs is to hire a professional tax attorney. The expertise of a good tax attorney, CPA, or Certified Tax Resolution Specialist will maximize your chances of winning an affordable tax settlement such as an installment agreement or penalty abatement.
Read the full CNNMoney article to learn more ways that you can avoid an IRS audit and how you can protect yourself from getting in deep trouble with the IRS.
Tax Resolution Services is a team of expert tax attorneys, CPAs, and Certified Tax Resolution Specialists who are here to help you with your tax problems. Call our office today at 1-866-IRS-PROBLEMS or visit www.taxresolution.com for a free tax resolution consultation.
Tags: avoid IRS audit, CNN Money, delinquent taxes, FBAR, Free Tax Consultation, Installment Agreement, IRS audit, IRS debt, IRS help, IRS payment plan, irs problems, offshore tax evasion defense, overseas bank accounts, self-employment tax, tax attorney, tax help, tax resolution, tax resolution services, tax settlement
Posted in Back Taxes, Expert Help From Tax Attorney, IRS Installment Agreements, IRS help, IRS tax audit, Offshore Tax Settlements, Penalty Abatement, Seeking Professional Tax Help, Tax news and tips, Unfiled Returns - Delinquent Tax Returns, Voluntary Disclosure, income tax relief, tax help | No Comments »
Tuesday, February 23rd, 2010
The economy is still tough on most taxpayers as the April 15th tax filing deadline approaches. While the IRS is strapping in all they’ve got to collect as much tax revenue as they can, a recent report by CNNMoney.com reveals that some 13% of all Americans find it acceptable to cheat on their taxes in order to save money.
Since the government has been trying to help struggling taxpayers with various tax credits, some taxpayers are taking more than full advantage of these opportunities by claiming more money than they actually deserve.
While some of these tax refund claims exceed their appropriate amount by deliberate calculations, most taxpayers are overwhelmed by the ever-increasingly complex tax code and tax laws that they just put down a number that “seems right.” Whether the tax evasion is deliberate or not, both of these cases of tax cheating can get you into deep IRS trouble.
The good news is out of everyone polled by CNNMoney, about 80% said that it is never acceptable to cheat on taxes. This goes hand-in-hand with the 77% of taxpayers who reported that the reason they don’t cheat on their taxes is due to the fear of being audited by the IRS.
No matter how you feel about tax evasion, you need to know the truth of the current situation. The IRS is serious about collecting every cent you owe them. They will scrutinize your taxes, audit you, and penalize you if necessary in order to get you to pay any back taxes you owe.
So if you’re in IRS trouble, don’t wait till later to resolve it. The longer you wait, the worse your penalties and back taxes will get. Get tax help from a professional tax attorney, CPA, or Certified Tax Resolution Specialist to resolve your IRS tax debt.
Read more about the American tax evasion trend and how you can avoid IRS problems.
You can call our Tax Resolution Services office at 1-866-IRS-PROBLEMS or visit www.taxresolution.comtax resolution consultation. Put your tax problems behind you for good today, call now! for a free
Tags: Back Taxes, CNN Money, IRS audits, IRS debt, IRS help, irs problems, Michael Rozbruch, tax advice, tax attorney, tax cheat, tax evasion, tax expert, tax fraud, tax help, tax relief, tax resolution, tax resolution expert, tax resolution services
Posted in Back Taxes, Expert Help From Tax Attorney, IRS help, IRS tax audit, Seeking Professional Tax Help, Tax Relief News, Tax news and tips, tax help | No Comments »
Saturday, February 20th, 2010
My rule of thumb is to evade taxes only if you want to go to prison and pay a hefty fine! Otherwise, tax evasion isn’t the answer to any tax problems. Instead, I recommend hiring a tax professional, such as a Certified Tax Resolution Specialist, who can help you you find tax relief legally! Tax Resolution Services can help you resolve tax debt and not end up behind bars like this crooked guy from New Jersey.
A former Wayne, N.J., resident who operated a mortgage and real estate business pleaded guilty to tax evasion, admitting that he failed to report to the IRS nearly $836,500 of income, a portion of which represented proceeds from fraudulent mortgage transactions.
Russell Mainardi, 51, of Hyland Mills, N.Y., admitted that he knowingly permitted mortgage loans to be made to borrowers based on false information submitted to the banks. He then directed commissions and proceeds from the real estate transactions to a company bank account that he used to hide the income from the IRS.
He faces up to five years in prison and a fine of up to $250,000.
Tax Resolution Services can help you every step of the way. Read more about what to expect when resolving your tax debt and then call us for a free tax consultation today at 1-866-IRS-PROBLEMS (1-866-477-7762) with a Tax Resolution Specialist who will help solve your IRS tax problems!
Tags: Free Tax Consultation, hiding income from the IRS, irs problems, IRS tax problems, pleading guilty to tax evasion, resolve tax debt, tax evasion, tax professional, tax relief, tax resolution services, what to expect when resolving tax debt
Posted in IRS Tax Cases, IRS Times and Inquirer | No Comments »
Tuesday, February 16th, 2010
I believe that some people evade taxes because they fear that the taxes, or back taxes, they owe will be more than they can handle. As I’ve blogged about tax evasion over and over again, one can only get away with tax evasion for so long and eventually the IRS will catch up to you. Then you are looking at prison time and a hefty fine. Don’t be afraid of taxes. Seeking tax relief services from tax professionals like Tax Resolution Services, a team of Certified Tax Resolution Specialists and income tax attorneys, will help you sort through your tax problems, whether it is settling back taxes, IRS tax audits, IRS tax liens, payroll tax problems and more (see all tax help services). Now that this Arizona couple was found guilty for tax evasion and is facing prison time, I bet they wished they used professional tax relief services instead of trying to outsmart the IRS!
A federal jury returned guilty verdicts against a Sedona, Ariz., couple who operated a drug and alcohol rehabilitation center in that city.
Dr. William Howard Steiniger, 65, and his wife, Diane Goulder Steiniger, 52, operated Desert Canyon Treatment Center from 1998 until December 2008. They were each convicted of one count of conspiracy to impede and impair the Internal Revenue Service and four counts of tax evasion.
During the four-day trial, testimony established that from as early as 1997 to at least August 2007, the Steinigers conspired to defraud the United States and to defeat the IRS in its attempts to assess and collect income tax. This was accomplished by the Steinigers’ funneling of their substantial incomes into sham entities which they created.
William Steiniger’s earnings from Desert Canyon were directed to a sham trust which he called National Career & Life Institute, while Diane Steiniger’s income was directed to Flair International Ltd., which she set up as an International Business Company in the Central American nation of Belize. Trial testimony was that the Steinigers evaded assessment and payment of more than $390,000 in federal income tax from 2002 to 2005. Neither defendant paid any federal income tax from at least 1997 through 2005.
Each of the five counts against the couple carries a maximum sentence of five years in prison and a $250,000 fine.
For IRS tax relief (or more tax services), fill out our online form for a free tax consultation from Tax Resolution Services team of tax attorneys and Certified Tax Resolution Specialists or call 1-866-IRS-PROBLEMS (1-866-477-7762) today!
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Posted in IRS Tax Cases, IRS Times and Inquirer, Tax Relief News, Working with the IRS | No Comments »
Wednesday, February 10th, 2010
Employers trying to avoid IRS payroll tax problems may encounter a different challenge: employees disputing tax withholdings.
Sometimes the line between a contractor worker and an employee may get blurred–as an employer as well as employee, it’s important that you clarify your work status before you file your taxes each year. This will help you avoid IRS problems down the line and will also ensure that you won’t have accumulated back taxes.
In a recent case, an employee’s claim against his tax withholdings was dismissed by the IRS on the grounds that his contention of “not being a taxpayer” is frivolous.
CCH (http://intelliconnect.cch.com) reports:
Employer Required to Withhold Taxes From Employee’s Wages; Damages Claim Dismissed
An individual’s action against the director of human resources at the company where he was employed seeking damages in the amount of taxes withheld from his wages and punitive damages was dismissed. His claim that he was a “sovereign” and not a taxpayer was frivolous. The employer was required under federal and state law to withhold and deduct federal and state income taxes from its employees’ wages.
While taxpayers may be getting creative with ways to avoid taxes, it is important to note that deliberate evasion of income taxes will only lead to more IRS penalties and fines down the road.
If you have back taxes, it is advisable that you resolve them now before your penalties grow overwhelming.
If you’re unsure of how to handle your tax problems, you can call Tax Resolution Services at 1-866-IRS-PROBLEMS or visit www.taxresolution.com for a free tax resolution consultation. Our team of expert tax attorneys, CPAs, and Certified Tax Resolution Specialists will give you the tax help you need!
Tags: Back Taxes, CCH, delinquent taxes, IRS help, IRS payroll tax problems, irs problems, tax attorney, tax evasion, tax expert, tax help, tax relief, tax resolution, tax resolution services
Posted in Back Taxes, Expert Help From Tax Attorney, IRS Tax Cases, IRS help, Payroll Tax Problems, Seeking Professional Tax Help, Tax Relief News, Tax news and tips, income tax relief, tax help | No Comments »
Wednesday, February 10th, 2010
You know you’ve gotten yourself in deep trouble when Wikipedia, the wildly popular online encyclopedia, has an article about you titled “Spinka Financial Controversy“. What can I say? Tax evasion and tax fraud, on a small scale or grand scale, is wrong and the IRS will catch you. For those of you who are victims of fraudulent investment schemes, there is some hope for recovery. Under the Internal Revenue Code 165 you may be able to recoup 30% to 40% of your losses. If you’ve been a victim of an investment fraud, seeing the perpetrators go to jail is only one half of revenge – recouping your losses is the other!
The Grand Rabbi of Spinka, a religious group within Orthodox Judaism, was sentenced to two years in federal prison for orchestrating a tax evasion scheme that prosecutors called “an astonishingly complex and sinister enterprise.”
Grand Rabbi Naftali Tzi Weisz, 61, of Brooklyn, New York, pleaded guilty last summer to a criminal conspiracy charge in which he admitted to working with others to obstruct the IRS by soliciting charitable donations to Spinka-related organizations with secret promises to refund donors the vast majority of the money they “donated.”
With Weisz’s sentencing, a total of seven individuals have been convicted and sentenced for working together to obstruct the IRS and to operate an unlicensed money-transmitting business.
Tax Resolution Services offers Investment Fraud Representation amongst our list of tax services. We are Certified Tax Resolution Specialists and can help with recovering your investment fraud losses today! Free tax consultation with a tax specialist simply by filling out this short online form.
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Friday, January 29th, 2010
Taxpayers with foreign bank accounts must stay on top of the game when it comes to paying taxes and disclosing foreign funds.
If you have undisclosed foreign funds or if you have accumulated back taxes on your overseas money, now is the time to seek tax help from a tax attorney or Certified Tax Resolution Specialist to resolve your IRS problems before they become any worse.
Due to the severe nature of offshore tax evasion charges, it is advisable for you to hire a special offshore tax evasion defense division for expert tax help in order to maximize your chances of winning an affordable IRS installment agreement or penalty abatement.
It is no longer safe to believe that the Swiss government will protect your secrecy. This latest report shows how the Swiss government is continuing to cooperate with the IRS rather than to hide the identities of wealthy tax evaders.
CCH (http://intelliconnect.cch.com) reports:
Swiss Seek to Salvage UBS Agreement; IRS Expects Continued Cooperation
Switzerland’s executive body, the Swiss Federal Council, announced on January 27 that it intends to salvage its landmark 2009 agreement with the U.S. to expose alleged tax evasion by U.S. nationals. The agreement cracked open Switzerland’s long history of bank secrecy by requiring one of its largest banks, UBS AG, to disclose account holder information to the U.S. Court Setback.
In a January 21 ruling, made public on January 22, the Swiss Federal Administrative Court found that the 2009 agreement exceed the scope of the U.S.-Switzerland tax treaty. The court held that the agreement permitted no change to terms that had been given binding definitions in the treaty, particularly the definition of “tax fraud or the like,” which does not encompass “any serious tax offenses in the sense of the continued evasion of large sums of tax.”
Fewer Disclosures
The 2009 agreement anticipated that information would be shared involving 4,450 accounts at UBS. “It is thought that treaty assistance will be ruled out in around 4,200 cases,” the Swiss Federal Council said in a statement. “Only in around 250 cases may information be exchanged with the U.S.,” the Swiss Federal Council noted.
Under the 2009 agreement, UBS provides account information to the SFTA, which, in turn, decides if the account meets the criteria for disclosure to the U.S. According to published reports, the U.S. has received information on fewer than 10 accounts. CCH asked the IRS to confirm this number but a spokesperson for the Service declined to comment.
The IRS spokesperson did, however, reiterate the Service’s earlier comments that it expects continued cooperation from Switzerland. “The U.S. has an agreement with the Swiss government to produce information in U.S. accountholders at UBS. We expect the Swiss government to continue to honor the terms of the agreement,” the spokesperson told CCH.
Possible Remedy
The Swiss Federal Council may present the 2009 agreement to the Swiss parliament for approval. “The agreement would stand as a treaty of the same status as the older and more general bilateral double taxation agreement and, according to general rules of interpretation, would take precedence over the latter,” the Swiss Federal Council explained. The Swiss Federal Council added that it “firmly believes that the ongoing threat of a conflict with the U.S. can be eliminated for good only by executing the agreement.”
By George L. Yaksick, Jr., CCH News Staff
We have seen how aggressive the IRS has worked together with the Swiss government to reveal more than 4,000 names of tax evaders in the past few months–it would be a mistake to believe that this is all over. If you are in IRS trouble for overseas tax evasion, you can get tax help now in order to resolve your taxes and penalties.
Tax Resolution Services’ Offshore Banking and FBAR Defense Division is headed by the nation’s leading offshore tax evasion defense experts. Don’t wait another day, get tax help today to be rid of your IRS problems!
Call Tax Resolution Services’ team of expert tax attorneys, CPAs, and Certified Tax Resolution Specialists today at 1-866-477-7762 for a free tax resolution consultation or visit www.taxresolution.com
Tags: Back Taxes, CCH, delinquent taxes, FBAR, Free Tax Consultation, Installment Agreement, IRS debt, IRS help, IRS payment plan, irs problems, Michael Rozbruch, offshore bank accounts, offshore tax settlement, tax attorney, tax evasion, tax help, tax resolution, tax settlement
Posted in Back Taxes, Expert Help From Tax Attorney, IRS Installment Agreements, IRS Tax Cases, IRS help, Offers in Compromise, Offshore Tax Settlements, Penalty Abatement, Seeking Professional Tax Help, Tax Debt Help News, Tax Relief News, Tax news and tips, Unfiled Returns - Delinquent Tax Returns, tax help | No Comments »
Thursday, January 28th, 2010
Unfiled delinquent tax returns can weigh on you like a disease. Every unfiled delinquent tax return eats at you, year after year, compounding fear until you feel hopeless. So if you’ve got a late delinquent tax return, follow the simple steps outlined in this unfiled delinquent tax return checklist and get expert help from a tax attorney or a Certified Tax Resolution Specialist to check the IRS off your worry list forever.
If you’ve been lucky so far that your unfiled delinquent tax returns have avoided the IRS’s attention, your luck is about to run out. The IRS’s increased enforcement means that every unfiled tax return will soon be coming back to your door with as much as 25% penalties, interest plus the prospect of prison on federal felony back tax evasion charges. Our average client who has 4-11 years of unfiled tax returns we know how the IRS can take everything you own if you don’t act now. So if you’ve got a late delinquent tax return, act now on the eight easy steps in this unfiled delinquent tax return checklist and rid your worry of the IRS for good.
Unfiled Delinquent Tax Return Step ONE: Don’t panic, but head with all deliberate speed to your nearest tax attorney or Certified Tax Resolution Specialist for a tax relief consultation. When you have an unfiled tax return, it weighs on you like a disease. Every late tax return eats at you, year after year, compounding fear until you feel like you’re going to explode. You need to tell your tax attorney or Certified Tax Resolution Specialist how many years your unfiled delinquent tax returns have been ticking like a time bomb and what (if anything) the IRS has written to you about your unfiled tax returns. If your late tax returns go back for a number of years, you could be easily looking at many thousands of dollars in back taxes and up to 25% in penalties and interest. A call to a tax attorney or a Certified Tax Resolution Specialist is a financially shrewd move because the return on investment can be huge, often slashing or even eliminating your back tax debt for some or all of your unfiled delinquent tax returns.
Unfiled Delinquent Tax Return Step TWO: Start with the last year you filed taxes. Go back to the last year the IRS got your taxes. You’ll need figures from that return to fill out those unfiled tax returns.
Unfiled Delinquent Tax Return Step THREE: Make sure you have all the tax documents the IRS does. Go to your local Social Security office to get copies of all the W-2s, 1099s and other documents for the years you have unfiled tax returns. The IRS may have gotten a document that you didn’t and this could be the source of some of your unfiled tax return problem. For example, you may have worked with an out of state client and that may have meant you needed to file a tax return in that state. A good tax attorney or Certified Tax Resolution Specialist can help you recreate your late tax return paper trail.
Unfiled Delinquent Tax Return Step FOUR: Figure out what your original tax liability would have been. Most tax attorneys and Certified Tax Resolution Specialists work with CPAs, Enrolled Agents and other tax professionals who can help you prepare your unfiled tax returns. Since you know for a fact that the IRS will be examining these unfiled delinquent tax returns with a fine toothcomb, now is not the time for amateur hour. These late tax returns will get the IRS’s harshest scrutiny so you shouldn’t submit anything that isn’t 100% bulletproof. To survive this battle, you need the professional help of a good tax preparer, tax attorney or a Certified Tax Resolution Specialist. If you want to take a preliminary stab at creating the unfiled tax returns so your tax attorney or Certified Tax Resolution Specialist doesn’t have to start from scratch, the IRS has downloadable forms and instructions going back to 1980 here: http://www.irs.gov/formspubs/article/0,,id=98339,00.html. You must also get tax forms for your state. Many states have online forms going back only a few years. If you can’t get the forms for your unfiled delinquent tax returns online, you may have luck going to the library (call the reference desk first) to see if they have the IRS forms you need from the previous years. If they don’t have the late tax return forms for the years you need, contact a tax attorney or Certified Tax Resolution Specialist because they are virtually certain to have the unfiled delinquent tax return forms for the years you need.
Unfiled Delinquent Tax Return Step FIVE: Verify that the IRS and you agree on the unfiled tax returns. Once you have prepared the late tax returns yourself (or had a tax preparer do it), have a tax attorney or Certified Tax Resolution Specialist check your version of the unfiled delinquent tax returns against the IRS’s estimation of your back tax debt. Sometimes the IRS makes simple mistakes on their Substitute for Returns. The IRS may not know if you’ve had kids in the interim, or that your tax situation has changed substantially. A tax attorney or Certified Tax Resolution Specialist will interview you to determine whether the IRS has an accurate picture of your tax status.
Unfiled Delinquent Tax Return Step SIX: Send your unfiled tax returns to the IRS the right way. Any late tax return is too important to send electronically. Go to your local IRS office and hand deliver each return. Get a receipt for each unfiled delinquent tax return. If that doesn’t work for you, then send each return separately via certified mail. Just to be safe, send each unfiled tax return separated by a few days. Also note if you are told that your late tax return is in the collections or SFR (Substitute For Return) office. Be sure to get the proper address and sent each unfiled delinquent tax return separately to that address.
Unfiled Delinquent Tax Return Step SEVEN: Send in each unfiled tax return with a check for $5. Your interest and penalties for each late tax return compound with every day of non-payment (as much as 25%). Stop that clock as soon as you can by filing those unfiled delinquent tax returns immediately.
Unfiled Delinquent Tax Return Step EIGHT: Have your tax attorney or Certified Tax Resolution Specialist devise an IRS payment game plan. Can you pay your unfiled tax return back tax debt in full? Should you? Should you try for an offer in compromise? Should you try to get an IRS payment plan for your late tax return back tax debt? Expert tax help from a tax attorney or Certified Tax Resolution Specialist can help you decide on the game plan that makes the most sense for you. Remember that a good tax attorney or Certified Tax Resolution Specialist can often get you an offer in compromise tax settlement that will be pennies on the dollar.
If you follow these steps to solving your unfiled delinquent tax return problem, you can find hope. Working with a tax attorney or Certified Tax Resolution Specialist is the best way you can get many happier tax returns. Learn more about how you can find a tax resolution company you can trust.
For those of you who have not paid your taxes this year, there is still hope. Check out the 5 Reasons to File Delinquent Tax Returns.
For more information on how to resolve your back taxes and file delinquent tax returns, visit www.taxresolution.com for a free tax relief consultation or call 866-IRS-PROBLEMS.
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Posted in Back Taxes, Expert Help From Tax Attorney, Filing Unfiled Returns and Replacing Substitute for Ret, IRS Installment Agreements, IRS help, Offers in Compromise, Payroll Tax Problems, Penalty Abatement, Seeking Professional Tax Help, Tax Relief News, Tax Resolution Options and Alternatives, Tax news and tips, Unfiled Returns - Delinquent Tax Returns, Useful Tax Resolution Websites, income tax relief, tax help | Comments Off
Saturday, January 23rd, 2010
On this tax blog I have written about tax scams and tax evasion many times. Besides Bernie Madoff and his Ponzi scheme, I have never written about a story as ridiculous as this one. First of all, selling stolen software is dumb. Even dumber when you steal it directly from Dell, one the biggest computer corporations, and then commit tax evasion to hide your earnings from this stolen property. This man was just begging to be caught! How does this tie into Tax Resolution Services? First of all, if you’re selling stolen software and falsely reporting earnings on your tax return, we can’t help you. But if you are struggling to resolve tax problems such as back taxes owed, are wondering about IRS payment plans or payroll tax problems, we can gladly help you! Hire our team of tax attorneys, CPAs and Certified Tax Resolution Specialists today to settle your tax problems by calling 1-866-IRS-PROBLEMS!
A Delaware pleaded guilty to one count of mail fraud and three counts of tax evasion in an elaborate scheme to defraud computer maker Dell.
According to court records, between 2005 and 2008, Ning Zhu, 32, of Newark, Del., defrauded Dell of approximately $102,000 by fraudulently obtaining software in connection with the purchase of personal computers.
During the course of hundreds of transactions with Dell, Zhu, using multiple false names and addresses, claimed not to have received software that he had in fact received. Through this deception, Zhu obtained duplicate copies of the software, which he then sold unlawfully.
On his tax returns, Zhu falsely stated that his income for 2005 was $4,603, and that the amount of tax due was $0. In fact, his taxable income for 2005 was $300,333, and the amount of tax due was $79,701. He made similarly false statements in 2006 and 2007, grossly underreporting his income from the sale of the ill-gotten software.
On the mail fraud charge, Zhu faces a maximum up to 20 years in prison and a $250,000 fine. On each of the three tax evasion charges, he faces up to five years in prison and a $250,000 fine.
Tax Resolution Services is a company that provides tax relief services. Take the first step to tax resolution by filling out our online form for a free tax consultation. Visit our tax blog daily for free tax advice.
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Tuesday, January 19th, 2010
Failing to file a federal tax return does not mean that your taxes owed simply go away. These taxes turn into back taxes and when the IRS figures it out, you will be facing BIG trouble including fines and prison time. If you owe the IRS back taxes, Tax Resolution Services can help settle your tax debt, even if you can’t afford to pay the back taxes that you owe. A Certified Tax Resolution Specialist will review your tax settlement options with you and help you find the best plan to settle your back taxes. Ignore your back taxes and face prison time, like this man from Minnesota, or choose to settle your back tax debt today!
A federal trial jury in St. Paul, Minn., convicted a 53-year-old Minneapolis man of evading payment of at least $332,162 in federal income taxes owed for tax years 2002 to 2005.
Steven Mark Renner was found guilty of four counts of tax evasion. According to court records, Renner diverted substantial funds from his business, Cash Cards International, between 2002 and 2005 to pay his personal living expenses as well as to make personal investments in coins, oil wells, art, stamps and vintage musical instruments. Renner also used CCI funds to promote his musical band, Stevie Renner and the Renegades.
From 2001 to 2006, Renner owned CCI, an Internet-based stored-value card and money-transmission business, with locations in Minnesota, South Dakota and Hawaii. Although he was legally obligated to file federal income tax returns and pay all federal taxes owed, he failed to file his income tax returns for tax years 2002 to 2004 until March 5, 2006, the date on which he also filed his 2005 federal income tax return. Moreover, he failed to pay the $332,162 in taxes due and owing for those years.
“Honest, hardworking taxpayers pay the price when others choose to evade their tax obligations,” said Julio La Rosa, Acting Special Agent in Charge of the IRS-Criminal Investigation Division’s St. Paul Field Office, in a statement.
Renner faces up to five years in prison.
There are many options for settling back taxes and a tax professional from Tax Resolution Services can guide you to the option that works best for you. Tax Resolution Services is comprised of a team of tax attorneys and IRS specialists who are dedicated to helping people resolve their tax debt. A free tax consultation is available by filling out the online tax consultation form or calling Tax Resolution Services at 1-866-IRS-PROBLEMS.
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Thursday, January 14th, 2010
Recently I was featured in CPA Magazine along with an elite selection of other top CPAs and tax experts to offer tax help and advice to taxpayers like you to prepare for the upcoming 2010 tax return filings. In light of the fast-approaching 2010 tax season, I want to draw your attention to a few things that you need to know about new IRS regulations for tax preparers.
If you didn’t know already, the IRS projects that it will receive more than 139 million individual tax returns in 2010. As Americans get ready to file their 2009 tax returns, the IRS is focusing in on the tax return preparer community in an attempt to curb tax cheats and boost enforcement of its tax collection efforts.
As one of Top 40 Tax Advisors to Know During a Recession, I will tell you this: essentially the IRS is turning tax professionals into ‘auditors’ instead of advocates of our clients. What’s happening now is that the government has decided that its war on tax evasion is a multi-front conflict, ranging from overseas bank accounts to the tax preparer around the corner.
In this particular CPA Magazine feature, “What We Learned From Last Tax Season,” the article reveals important tax lessons from me along with other top tax advisors aimed to help readers work smarter in 2010 when preparing their tax returns.
Basically, the government’s new model for the regulation of tax return preparers includes a “More Likely Than Not” preparer penalty standard designed to make it more difficult for tax advisors to take aggressive positions on behalf of clients who need tax help when they fall in the grey area of IRS law.
Let me elaborate:
Per IRS’s IRC Section 6694, the “More Likely Than Not” preparer penalty standard is making it more difficult to take aggressive positions on behalf of clients who are in the grey area of tax law. The IRS is turning tax professionals into “auditors” instead of advocates of our clients.
If the IRS detects and proves beyond a reasonable doubt that fraudulence was deliberate, both the taxpayer and the tax preparer will now be liable for IRS penalties. However, if you have a very strong case to get the penalties abated or removed, a tax attorney or Certified Tax Resolution Specialist can help prepare amended returns and then represent you in the case of an IRS audit.
Make sure that you handle your tax returns carefully this season. Don’t cheat on your taxes–now with the IRS and tax preparers both on the lookout for fishy tax activities, it’s no time to gamble with your life’s savings. But also make sure that if you do use a tax preparer, that you double-check all your tax returns before approving them; otherwise, you could be liable for a tax filing mistake you did not make.
Tax Resolution Services is a team of expert tax attorneys, CPAs, and Certified Tax Resolution Specialists who are here to help you with your tax problems. Call our office today at 1-866-IRS-PROBLEMS (1-866-477-7762) for a free tax resolution consultation or visit www.taxresolution.com
Tags: Back Taxes, CPA magazine, delinquent taxes, income tax relief, more likely than not, tax attorney, tax expert, tax help, tax preparer penalty, tax resolution, tax season 2010, tax settlement, Tax Tips
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Monday, January 11th, 2010
Investment fraud, also known as a “Ponzi” scheme, is prevelant both on a small scale or large scale (two words: Bernie Madoff). Tax Resolution Services offers help for those who’ve been scammed in these white collar crimes. A Certified Tax Resolution Specialist can tell you if you are eligible to recover 30% to 40% of your losses through investment fraud representation under the Internal Revenue Code section 165. Recoup your losses with professional investment fraud representation and enjoy the article about this white collar criminal that was caught!
A former Broward County, Fla., commissioner and county mayor pleaded guilty in December to conspiring to launder money and to filing a false tax return.
During the plea hearing, Josephus “Joe” Eggelletion, 60, of Lauderdale Lakes, Fla., admitted to intentionally conspiring with others to assist in the laundering of money represented by FBI undercover agents as coming from a purported high-yield investment “Ponzi” scheme and to evade paying federal income taxes on the cash fees he received for laundering this money.
More specifically, Eggelletion admitted that he introduced the FBI undercover agents to co-conspirators Ronald Owens and Joel Williams, who assisted the undercover agents in meeting with Bahamian attorney Sidney Cambridge to open a Bahamian bank account to launder their money. The undercover agents had represented to Eggelletion and others that the money originated from a high-yield investment fraud scheme.
Eggelletion faces up to five years in prison.
Tax Resolution Services offers a free consultation for investment fraud representation and tax problems such as filing delinquent tax returns, dealing with IRS tax liens or tax audits and more. Call 1-866-IRS-PROBLEMS to speak with a tax professional today!
Tags: Bernie Madoff, certified tax resolution specialist, evade paying federal taxes, filing delinquent tax returns, filing false tax return, Free Tax Consultation, internal revenue code 165, investment fraud representation, investment fraud scheme, IRS 165 code, money laundering and tax evasion, overseas tax shelters, ponzi scheme, section 165, section 165 representation, tax evasion, tax liens, tax resolution services, tax resolution specilist, white collar crimes
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Friday, January 8th, 2010
As taxpayers are getting ready to file their 2010 tax returns, an important thing to remember is to only claim deductions that you can substantiate with evidence. This is an easy way to avoid incurring the wrath of the IRS–do not deduct “business” expenses that are personal!
I have blogged about many cases before where individuals were subjected to IRS penalties for falsely claiming business expenses as a part of their deductions. When requested to bring evidence to support these deductions, these individuals were unable to produce them.
Remember, if the IRS suspects you of falsely claiming tax deductions, you are guilty till proven innocent. This means if you do not have the documents to back up your deductions, you are guilty and will be slammed with IRS penalties–whether or not the deductions were actually legitimate. So don’t make the mistake of being slammed by IRS penalties simply because you threw away your records.
Just recently a couple was penalized for claiming false business expenses because they had incorporated their insurance business as a method of tax-evasion.
CCH (http://intelliconnect.cch.com) reports:
Couple’s Claimed Business Expenses Were for Tax Avoidance, Penalty Imposed
A married couple could not deduct expenses they claimed from the husband’s insurance business for the years in issue because they failed to prove that the payments were ordinary and necessary expenses in carrying on a trade or business. Their testimonies that the payments made to their daughters were for services rendered to the business and that other payments made were for furtherance of the business were self-serving. Their documentary evidence did not have any economic reality beyond tax planning.
The creation and incorporation of the purported insurance business was for tax-avoidance. The claimed expenses for wages, rent, management services and other expense, were not for rendered services or connected with their insurance business, but were actually payments of the couple’s nondeductible personal living expenses and for their personal residence expenses. To bolster the chances that they would succeed in achieving their tax-avoidance objective, they created a fictitious paper trail that included a purported management consultant agreement, a purported employment agreement, a purported medical and dental reimbursement plan, purported real estate installment documents, a purported educational assistance plan document and a purported automobile installment sale agreement.
The taxpayers were liable for the accuracy-related penalty for the years in issue because they substantially understated their tax by claiming deductions to which they were not entitled. The taxpayers failed to carry their burden of establishing that there was reasonable cause for and that they acted in good faith with respect to any portion of the understatement of tax.
Don’t start off 2010 with new IRS problems. Avoid IRS penalties by making sure that your information is accurate and truthful on your tax returns. Always keep a careful record of your business expenses so that you can back up your tax return if the IRS requests evidence.
Tax Resolution Services is a team of tax attorneys, Certified Tax Resolution Specialists, and CPAs who are here to offer your tax help. You can call our office today at 1-866-477-7762 for a free tax resolution consultation or visit www.taxresolution.com.
Tags: Back Taxes, business expense deductions, false business expense deductions, false deductions, IRS debt, IRS help, IRS penalties, Michael Rozbruch, tax attorney, tax evasion, tax help
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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
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Thursday, January 7th, 2010
As a Certified Tax Resolution Specialist, I’ve seen how rough the last couple of years have been for tax cheats in the United States. But the bad news is the IRS has plans to put even more pressure on tax cheats in 2010.
For middle-class tax cheats, there was the Caribbean scheme. U.S. taxpayers living in the United States would stash their money in a Caribbean bank account, then link that bank account to a credit card they could use to pay for everyday expenses at home. It gave these taxpayers the tax-cheating luxury of having mad money the IRS didn’t know a thing about.
Until, of course, the IRS found out. The government cut deals with the major credit card companies and obtained lists of people whose credit cards were linked to foreign accounts.
Amnesty came first. Then came prosecutions of individuals for tax evasion.
For wealthy tax cheats, Switzerland has long been the scheme. With the right money and contacts, U.S. taxpayers could conceal hundreds of thousands, even millions, in bank accounts protected by a Swiss banking veil that guaranteed total secrecy.
Until, of course, the IRS finally pierced that banking veil after threatening to prosecute Swiss bank UBS. Now the U.S. government is set to obtain the names of taxpayers who have been hiding their many greenbacks.
Now, those with Swiss accounts could face enormous fines and even prison time. As I said, it’s been a rough couple of years for tax cheats in our country.
The bad news for them: The pain ain’t over. Not yet.
On Dec. 10, 2009, at the 22nd Annual George Washington University International Tax Conference, IRS Commissioner Doug Shulman made it clear that what has seemed like a bare-knuckled aggressiveness against tax cheats will only get more, well, bare-knuckled!
“The unprecedented agreement with the Swiss authorities we reached this past August regarding UBS account holders – and the response to the special offshore voluntary disclosure program – together represent an historic milestone,” Shulman told the audience. “They proved to the world – especially to account holders, promoters and banks – that we’re serious about our international efforts. We’re serious about piercing the veil of bank secrecy. And we’re serious about carrying forward the momentum to address offshore tax evasion.
“We will be mining the 14,700 voluntary disclosures,” he continued, “for information to identify financial institutions, advisors, and others who promoted or otherwise facilitated U.S. persons hiding assets and income offshore and attempted to shirk their tax responsibilities at home.”
Shulman promised increased budgets for compliance, the hiring of additional agents and a general sharpening of the IRS’s mighty sword.
Over the previous years, Shulman has proven he isn’t a man of empty promises.
If you’re cheating, maybe it’s time you stop. And maybe it’s time you finally get a tax professional such as a tax attorney or Certified Tax Resolution Specialist to help you.
You can learn more tax help tips by reading our previous TRS Newspaper Articles.
Tax Resolution Services is a team of tax attorneys, Certified Tax Resolution Specialists and CPAs that are here to offer you tax help. Take advantage of the expertise of our firm by calling 1-866-477-7762 today for a free tax resolution consultation or visit www.taxresolution.com
Tags: Back Taxes, delinquent taxes, IRS debt, IRS help, irs problems, Michael Rozbruch, tax attorney, tax cheats, tax evasion, tax expert, tax help, tax resolution services, tax settlement, Tax Tips
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