Recently I blogged about my guest appearance on Fox Business News talking with Brian Sullivan about the latest IRS collection efforts and how taxpayers need to know how to avoid and resolve back taxes in order to secure their financial future.
In the current tax climate, the US Government is hard-pressed for funding in order to pay for programs such as the $800 billion stimulus package, the “Cash for Clunkers” program, and a possible overhaul of the health care bill. Since the government has not been paying for these programs with current taxpayers’ money, it has turned to collect from non-filers, delinquent taxpayers, and tax cheats with increased aggression.
In tricky times like these, it’s important for taxpayers (especially those who owe back taxes) to be informed. Here are some common mistakes that people make when facing IRS tax problems:
Believing the IRS Forgives “Honest Mistakes”
For those who have experienced unusual circumstances (such as a death or serious illness of a loved one or natural disasters like wildfires) and as a result of these unexpected situations, failed to pay back taxes, are more likely to get penalty relief from the IRS. The IRS is the most brutal collections agency on the planet–always has been and always will be. There is no “honest mistake” in the IRS eyes that will dissolve any one taxpayer’s back taxes. However, if you choose your words correctly and pick a good tax expert to represent you, you could reduce your IRS penalties substantially.
Talking Too Much Can Get You in Deeper IRS Trouble
Another one of the biggest mistakes taxpayers make is to talk too much to the IRS representative or agent over the phone (or in person). The IRS auditor will oftentimes appear nice enough that you become “comfortable” to talk about your IRS issues. This is misleading; half of the referrals to criminal investigation comes from IRS auditors that appear “nice” but are actually schmoozing to get incriminating evidence out of your chatter.
Not Knowing Your Rights as a Taxpayer
Taxpayers need to know that they are protected under the Taxpayer’s Bill of Rights (signed into law in 1998 by Clinton) that acts like the Miranda Rights. Taxpayers are not at all obligated to speak to any IRS officer or agent until they want to–or until their representation takes over the communications with the IRS for them.
As soon as you are notified by the IRS for back taxes, delinquent tax returns, or IRS penalties, you are walking a long legal road on “egg shells.” If you owe more than $15,000 in back taxes, you will need professional tax representation (tax attorney, CPA, or certified tax resolution specialist) to help fight your case against the IRS.
Recently I was a guest on Fox Business News with Brian Sullivan to talk about the latest increase in IRS enforcement and how taxpayers and small business owners can protect their financial well-being by seeking professional tax representation.
With the government struggling for funds to pay for economic stimulus plans such as the “Cash For Clunkers” program and the $800 billion stimulus package, the IRS is under high pressure to collect back taxes from people who have not paid their dues in full. Since the government has not mandated regular taxpayers to pay for these expensive programs, the IRS is going after delinquent taxpayers, non-filers, and tax cheats to help foot the bill.
For the regular taxpayer, this means they need to be extra careful about getting into IRS debt while the IRS grows more aggressive on tax collection. Honest mistakes can happen (death in the family, inexperienced tax accountant/adviser); as long as the taxpayer keeps a solid record that will prove a strong case against the IRS charges, they are more likely to receive a penalty abatement.
If however, you find yourself in trouble with the IRS, it is extremely important that you refrain from talking too much to the IRS in order to prevent unconsciously incriminating yourself. Many people don’t realize that by speaking freely to an IRS agent about their charges, they could be adding evidence to the record that do not help their cases.
It’s official–UBS, the Swiss Banking Giant has reached a deal with the US Government and the Swiss Government to release around 4,450 names of American account holders suspected of tax evasion.
The US Government estimates there to be $18 billion hidden in these offshore accounts–giving the IRS plenty reason to scrutinize and audit both the innocent and guilty in the upcoming months.
If you have a UBS account and have not paid your taxes, you can still decrease the severity of your charges by participating in voluntary disclosure. Currently, the IRS offers an Amnesty Program for tax evaders who come forward before their names are disclosed by UBS. (The deadline for this program is September 23rd, 2009).
If you come forward to the IRS before UBS does, the IRS will drop all criminal charges in exchange of you paying all back taxes plus penalties and interest. Considering this exchange could make the difference between jail time and an affordable payment plan, it is worthwhile for tax evaders who have significant unpaid taxes.
Taxpayers are required by law to disclose all income from domestic and foreign sources–all of which are taxable. Therefore, if you are going through an IRS audit or have found yourself in trouble with the IRS, it is best to get professional tax help from an experienced tax attorney, CPA, or certified tax resolution specialist.
Guilty or innocent, it’s crucial for taxpayers with offshore bank accounts to be prepared for severe IRS scrutiny. Get professional tax help now before it’s too late. In most cases, finding the most qualified tax lawyer or tax resolution specialist can significantly reduce your IRS penalties.
Read more on how you can pick the best tax attorney to help you fight the IRS.
As Swiss bank UBS and the Swiss government consider reneging on a deal to turn over 52,000 names of U.S. clients, Justice Department warns criminal prosecution may be next step By Michael Rozbruch ———————————-
For those who follow tax compliance news, February was a big month.
That’s when the U.S. Department of Justice announced a deal with Swiss bank UBS.
The U.S. government agreed to waive criminal prosecution — federal prosecutors suspected the Swiss bank helped American clients evade as much as $300 million a year in taxes from 2002 to 2007 — if UBS would provide the U.S. government with the names of its 52,000 U.S. clients.
The government, of course, suspects these 52,000 U.S. clients are using their Swiss bank account to hide money and avoid income taxes. For wealthy Americans, that’s been a well-laid plan, since Swiss banks are known to offer absolute privacy.
Until now. Well, maybe.
Following the unprecedented agreement, the Swiss have hemmed and hawed, saying an order to release client names would violate Swiss banking law.
A Miami judge asked federal prosecutors what they would do if UBS reneged on the deal. Their response: UBS bank officials would face criminal prosecution.
This is quickly becoming something of an international banking incident. But what does it means for you, an American taxpayer?
A lot, in fact.
Take what John A. DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division, said earlier this year about obtaining UBS’s records: “It is time for those who are trying to hide from the IRS to rethink their actions. The Department of Justice is committed to do all that it can to aid the IRS in locating those who would seek to hide behind secret accounts and in holding them accountable under the federal tax laws.”
What DiCicco means, it’s safe to say, is this: The IRS has now mustered its entire strength to dismantle the mechanisms that in the past have facilitated tax evasion.
The highest profile of these mechanisms are Swiss banks, which have made fortunes over the last century operating with a success model that promised to protect money without asking questions or telling secrets. From Americans trying to hide money to dictators trying to steal it, Swiss banks offered the best option.
So to combat tax evasion, the IRS has targeted everything from credit cards to banks located overseas, and in the past year, the federal government has been remarkably successful at obtaining records, creating a sort of tip sheet of those who may be cheating Uncle Sam.
For American taxpayers such as you, the writing is on the wall: Time is short. That’s because, if you’ve used a traditional method of evading taxes such as overseas banks, the IRS will soon find out, if it hasn’t already.
Uncle Sam won’t back down from tax cheats. Ask the secretive Swiss.
———————————- If your offshore account comes under scrutiny from the IRS and you need tax help, Tax Resolution Services can advise you on how to avoid IRS problems. They can also help you with the voluntary disclosure process and filing any back taxes (delinquent taxes) that need to be taken care of.
Michael Rozbruch is a Certified Tax Resolution Specialist, a member of the American Society of IRS Problem Solvers and a Maryland CPA. You can contact him at 866-IRS-PROBLEMS (866-477-7762) to obtain a free subscription to his newsletter titled The IRS Times & Inquirer or read stories from the newsletter on our blog.
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. VisitTax Resolution Services for a free income tax relief consultation or call us at 866-IRS-PROBLEMS (1-866-477-7762).
Check out our latest TRS IRS tax help newsletter for tax tips, IRS insider news, and income tax relief advice.
Many taxpayers who are in IRS trouble have found it difficult to be approved for IRS settlements such as the Offer in Compromise program. Historically, OIC application approval rates have remained under 25%. Recently, the IRS has updated the OIC application forms so that it is easier for applicants to understand. This will increase accuracy rates on the applications which will improve your chances of being approved for a tax settlement (as long as your qualifications meet the requirements).
One of the ways to stay out of IRS trouble is to understand the anatomy of an IRS audit–how to avoid it and how to seek tax help when the IRS is after you. As taxpayers, you are essentially “considered guilty till proven innocent” by the IRS. Therefore, it is extremely crucial that you wage a proper battle agains the IRS with the right weapon—find a good tax attorney.
With IRS enforcement on the rise, it would be unwise to deliberately cheat on your taxes. As a savvy taxpayer, it is good practice to know your options for battling the IRS. By pursuing different tax relief options (depending on your unique situation), you can save yourself time, money, and frustration.
If you are in trouble with the IRS, our specialized staff of tax attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
Recently I spoke with Russ and Sully on the Big Biz Show to discuss how the more aggressive IRS tax collection effort is affecting tax cheaters as well as innocent law-abiding taxpayers.
Unfortunately, during this tense climate of increasing IRS enforcements, even some innocent people are going to get weaved into the mix and may find themselves in IRS trouble. Many of these innocent taxpayers will be able to explain and prove their innocence. It is always a good idea to understand the procedures of filing a case against the IRS to maximize chances of success. You are entitled to the help of a professional tax attorney–make sure you choose the right one for you.
Read on for some of the pertinent questions during today’s tax environment:
Q: For those people with bank accounts in Switzerland or have used the Bahamas as a tax haven, what can we expect now with the Obama Administration going after offshore accounts so aggressively?
A: We’re going to see the end to the secretive banking laws. The US Government has already sued the Swiss Government for the 52,000 names on the Swiss bank accounts. It is very probable that the Swiss is going to give those names up because the press has been announcing that the Swiss wants to cooperate. And if that happens, there’s going to be a lot of unhappy people in this country with regard to that. These tax evaders will have to answer to their crimes here and face the appropriate IRS penalties.
Q: What will happen to someone who inherits money from someone that recently passed away and is unaware of the tax responsibility they have on the inheritance?
A: Many people do not know that the money they inherit from someone–be it a 401k or an IRA–is taxable to the beneficiary. There could be hundreds of thousands of dollars in the retirement fund that was tax-free during the life of the person but when they pass, that money is all of the sudden taxable. If you inherit money and do not pay taxes on it, you are committing tax evasion and will be punished as that.
Q: If someone finds themselves in trouble with the IRS for failing to file for taxes in the past couple of years, what will you do to help them?
A: The first thing Tax Resolution Services does is we make a Voluntary Disclosure to the IRS—in other words, we’re going to the IRS instead of the IRS seeking out our client. One phone call from Tax Resolution Services can help you keep the case civil. 99% of the time, we keep the cases civil even when the IRS has already been contacting you to file those back taxes.
Voluntary Disclosure offers immediate relief for a couple of reasons: Number One, the client doesn’t have to talk or deal with the IRS from that point forward. We take over all correspondence and communications; Number 2, it keeps the case in the civil arena because it is a misdemeanor punishable by one year in prison to not file a return when it’s due. So we keep the case out of the judicial arena and keep it civil.
Avoid harsh IRS tax penalties. If you find yourself at odds with the IRS but are innocent of the charges, you are entitled to seek a professional tax attorney’s representation.
Don’t fight the IRS alone–you can contact our team of experts for a free consultation. Call us at 866-IRS-PROBLEMS (1-866-477-7762) or visit our website at www.TaxResolution.com
In a high-profile Tax Day press conference, President Obama announced an even more aggressive war on tax cheats. Now, the IRS is planning the assault.
By Michael Rozbruch ———————————-
It was only a couple of months ago that President Barack Obama, still freshly inaugurated, stood in the White House and announced his plan to go after — and go after aggressively — tax cheats, no matter where they hide their money.
His plan focused primarily on breaking down the network of banks and financial advisers that help U.S. taxpayers hide their money overseas, away from the watchful eye of the Internal Revenue Service.
The president’s words were tough. “If financial institutions won’t cooperate with us, we will assume that they are sheltering money in tax havens, and act accordingly,” he told a nationally televised audience.
But while the headlines focused on Obama’s mission to put an end to overseas tax shelters, his tax-collection plans were more far-reaching.
The president isn’t just looking for millionaires with their fortunes stashed away in Swiss banks.
No, he’s looking for what could be you — average Americans who are electing to cheat in order to avoid paying taxes.
If that fact isn’t obvious in President Obama’s speeches, it’s clear in the actions of the agency now under his watch — the IRS.
Last month, IRS Commissioner Doug Shulman announced a new recommendation that would place the government’s tax troops right on the front line of the tax-cheat war.
That’s right, the IRS is focusing on tax return preparer community. It’s not the government suspects this community of cheating; it’s that the government suspects the clients of this community may be cheating.
The government, in a sense, suspects you and is taking action.
Schulman’s recommendations include a new model for the regulation of tax return preparers; service and outreach for return preparers; education and training of return preparers; and enforcement related to return preparer misconduct.
“Tax return preparers help Americans with one of their biggest financial transactions each year,” Schulman said in a statement. “We must ensure that all preparers are ethical, provide good service and are qualified. At the end the day, tax preparers and the associated industry must be part of our overall game plan to strengthen the integrity of the tax system.”
Focus on that last line: part of our overall game plan.
The IRS realizes that it’s impossible to fully vet all of the millions of tax returns it receives every year. Getting the tax preparer community on board with enforcement will only help its tax collection efforts, the government has concluded.
Here’s what this means for you: The government has decided that its war on tax cheats is a multi-front conflict, ranging from overseas banks to the tax preparer around the corner. Simply put, it’s a bad time to be a tax cheat.
———————————- Michael Rozbruch is a Certified Tax Resolution Specialist, a member of the American Society of IRS Problem Solvers and a Maryland CPA. You can contact him at 866-IRS-PROBLEMS (866-477-7762) to obtain a free subscription to his newsletter titled The IRS Times & Inquirer.
Small business owners and sole proprietors have been identified as the largest group that is contributing to the increasing tax gap of $350 billion/year. It is extremely difficult for the IRS to investigate each small business owner to uncover tax evasion acts such as under-reporting income.
In the current economy, the astonishing yearly tax gap is alarming to policymakers who are desperately short of funds. They find that they cannot fulfill promises of helping to stimulate economic growth with public programs at the current tax revenue level. Public schools are suffering from the lack of money as well–leading ordinary Americans to suffer and burden the consequences of the tax gap.
Due to these pressing concerns, the IRS has been given more resources than before to heighten collection efforts in order to close the gap of $350 billion. Therefore, if you are tempted to partake in a tax evasion scheme, you need to prepare yourself for a more aggressive IRS crackdown that could result in your financial paralysis from severe IRS tax penalties.
You don’t have to be a tax lawyer to know the red flags that cause the IRS to suspect tax evasion. If you intentionally fail to report your business cash receipts, including checks that are cashed at the maker’s bank, the IRS has specific audit programs that will investigate this activity. Also, if the amount of income reported on your tax return far exceeds the previous year’s – you will be flagged as suspect! Additionally, if you are one of those “do-gooders” that helps others to file fraudulent tax returns and accept payment for this…that could be a problem.
Tax evasion encompasses any cheating of the government in taxes. Tax evasion is a felony and can carry up to a 5-year prison sentence and/or IRS penalties up to $100,000. Even in the current enforcement climate, taxpayers can learn how to save money by taking advantage of legal tax deductions to reduce their IRS bill.
Additionally, anyone who owes back taxes or is being audited by the IRS will need to know that there are options for negotiating a tax resolution. Working with a tax resolution specialist or tax lawyer can greatly increase your chances of successfully resolving your IRS tax problems. However, it’s important to be informed in the first place so you can avoid becoming a target of aggressive IRS collection efforts that can financially cripple you for life.
For more information on achieving a tax resolution for your IRS problems or back taxes, visit www.taxresolution.com for a free tax relief consultation or call 866-IRS-PROBLEMS.
In the current environment of increasing IRS enforcement efforts, it is unwise for taxpayers to evade taxes and think that they can get away with it.
While it may be true that a small percentage of tax evaders could enjoy a few years of “freedom” from the IRS, the ones who do get caught could be served with debilitating bank levies and heavy wage garnishments for life. (And you never know when the IRS will find you!)
The current yearly tax gap is at an astonishing figure of $345 billion and still growing at 10% every year. With the economy in shambles, the government is more pressured now than ever to close the tax gap in order to pay for projects that will ultimately help sustain a healthy economy.
There is a big difference between tax evasion and tax avoidance: while it is perfectly legal to work within existing law to avoid paying more than what is required by the IRS, cheating the government on taxes by evading tax laws is criminal and can carry up to a 5-year prison sentence and/or IRS penalties up to $100,000.
If you do find yourself under criminal charges by the IRS, you have the right to seek professional tax help from a tax lawyer. Oftentimes, help from a tax expert may make the difference between harsh penalties and substantial penalty discharges.
Make sure you know the difference between what is legal and what could get you in jail. 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.
In an effort to more aggressively pursue tax evaders who hide assets in overseas accounts, the US Department of Justice, UBS AG (Swiss Bank), and the Swiss government are working together to reveal the identities of US depositors who use secret offshore accounts.
In order to aid Obama’s latest efforts to bring out tax cheats who take advantage of offshore tax havens, the government of Switzerland filed a brief in the case asserting that it may confiscate from UBS any information identifying U.S. taxpayers hiding assets from the IRS in secret Swiss accounts.
CCH (http://tax.cchgroup.com) reports:
District Court Stays IRS Summons Enforcement Against Swiss Bank as Potential Settlement Looms
The U.S. Department of Justice (DOJ), UBS AG and the government of Switzerland, on July 12, filed a joint motion to stay proceedings concerning the identity of U.S. depositors that may be hiding assets offshore in secret accounts. Although no ruling was on the docket at press time, the DOJ announced through a subsequent July 13 media press release that the U.S. District Court for the Southern District of Florida granted the motion, allowing the parties until August 3 to work on a settlement. This announcement comes after the government of Switzerland filed an amicus brief in the case asserting that it may confiscate from UBS any information identifying U.S. taxpayers hiding assets from the IRS in secret Swiss accounts.
In the July 12 press release that coincided with the July 12 motion to stay, the DOJ stated that all filing parties agreed to require UBS to disclose the identities of a significant number of allegedly liable U.S. taxpayers if a resolution for the case could be reached out of court. Otherwise, with no alternative resolution, the DOJ said it will “continue to vigorously pursue enforcement of the summons through the court.”
DOJ Prosecution Continues
Despite this chance for settlement, the DOJ also filed a response on July 12 in opposition to the Swiss government’s threats to transfer the disputed information from UBS’s legal control. It argued that an act of state by the government of Switzerland would not interfere with the court’s enforcement of the summons. The DOJ also asserted that, should the court order UBS to comply with the summons and if UBS refuses to do so, it would ask the court to hold UBS in contempt and impose monetary sanctions. However, it emphasized that consideration of any punishment of UBS, as well as the Swiss government for its role in the dispute, before ruling on enforcement of the summons is premature.
“To the best of our knowledge the Swiss government has not yet taken such action, nor has it made clear what it means when it suggests that it will issue an order “taking effective control” of the UBS records,” the DOJ observed.
You may get help from our specialized staff of tax attorneys, CPAs, EAs and tax professionals at TRS. VisitTax Resolution Services for a free income tax relief consultation or call us at 866-IRS-PROBLEMS (1-866-477-7762).
The Obama Administration has given the IRS more financial and human resources to restrict tax evasion for the next couple of years–making it more difficult for tax cheats to escape unscathed. In an effort to bridge the enormous tax gap (most of which can be attributed to underreported income–$285 billion), the U.S. Treasury is working with the IRS to accomplish a number of stricter regulatory goals that would result in fewer tax cheaters, more voluntary compliance, and ultimately the reduction of the tax gap.
In this challenging economy, the U.S. government is experiencing a more pressing need to collect tax money in order to fund programs that would help stimulate economic rejuvenation.
On July 8th, the U.S. Treasury issued an updated report on managing the current tax gap issue (estimated at $345 billion a year).
CCH (http://tax.cchgroup.com/) reports:
Treasury Issues Updated Report on Efforts to Close Tax Gap
The Treasury Department on July 8 issued an updated report on its efforts to address the federal tax gap, estimated at $345 billion a year. The Treasury provided the report in response to a request by Senate Finance Committee Chairman Max Baucus, D-Mont.
The IRS collected $2.7 trillion in fiscal year (FY) 2008, representing 96 percent of government receipts. The tax gap represents the amount of legal tax receipts that are owed and not paid. The bulk of the tax gap –$285 billion –is attributed to underreported income. Another $33.3 billion results from uncollected taxes, while $27 billion stems from nonfilers. After IRS enforcement and collection of revenues of approximately $55 billion, the net tax gap stands at $290 billion, based on information from 2001 and earlier. The report notes that the Treasury and the IRS are making intensive efforts to update this information.
“With an ongoing economic recession, these billions of dollars in lost tax revenues could help relieve undue tax burdens … and contribute to long-term economic stability,” Baucus stated. “I am committed to developing legislation to make it easier for taxpayers to comply with their tax responsibilities and eliminate opportunities to underreport taxes or set up offshore tax schemes.”
The report estimates a voluntary compliance rate of nearly 84 percent, based on total tax liabilities of $2.11 trillion and voluntary tax payments of $1.77 billion. The IRS’s strategic plan for FY 2009-2013 sets a goal of 86 percent for 2009. Baucus pressed the Treasury in 2007 for a goal of 90-percent voluntary compliance by 2017.
Baucus commended the Treasury for a quick response to his May 2008 request for an updated plan. The report follows the Treasury’s September 2006 release of a Comprehensive Strategy for Reducing the Tax Gap and the IRS’s August 2007 report on Reducing the Federal Tax Gap: A Report on Improving Voluntary Compliance. The earlier reports promoted seven components of the plan to reduce the tax gap:
(1) Reduce opportunities for evasion;
(2) Make a multi-year commitment to research;
(3) Continue improvements in information technology;
(4) Improve compliance activities;
(5) Enhance taxpayer service;
(6) Reform and simplify the tax law; and
(7) Coordinate with partners and stakeholders.
The report summarizes the achievements, ongoing efforts and new initiatives for achieving progress in each area. The report notes that the administration’s FY 2010 budget proposes an expansive set of tools to reduce opportunities for evasion and other noncompliance.
Baucus commented that the report demonstrates that the IRS is working to identify problems, improve tax administration and set short-term compliance goals. He urged the IRS to devise more specific long-term goals, measures and timelines for improving tax compliance and recovering more revenue.
The report restates the IRS’s mantras that enforcement activities must be combined with a commitment to taxpayer service and that proposals must be sensitive to taxpayer rights and the imposition of burden on taxpayers. It pledges that the administration will work with Congress to strike the appropriate balance.
An Arizona businessman has been sentenced to 12 months in federal prison for failure to file a federal income tax return.
Mario Alexander Pino, 38, a self-employed consultant in Scottsdale, was indicted by a federal grand jury in August 2008 and entered a guilty plea in March 2009 to the crime of willful failure to file his 2003 tax return. Pino was also ordered to serve one year of supervised release upon leaving prison.
Pino admitted that a reasonable estimate of his 2003 income was $602,933 and that his federal income tax liability on that income was approximately $192,244. In addition, Pino admitted as part of his guilty plea that he purposefully did not file his 2003 return by April 15, 2004, and that he knew that he had an obligation to do so. Despite not filing his return, Pino said that he used an unfiled 2003 return as supporting proof of his income in making applications for automobile and mortgage loans in 2004 and 2005.
Tax cheats beware! The government is watching you. Tax problems are common and Tax Resolution Services can help you find tax relief. We are staffed with tax attorneys and IRS specialists to help you solve your tax problems. Call us at 1-866-IRS-PROBLEMS (1-866-477-7762) for a free tax consultation. We can help you and your tax problems.
The owner of a California healthcare-staffing business was sentenced to 18 months in prison after filing tax returns that failed to report more than $850,000 in income.
Nwadinaume Uba, 57, who was also fine $5,000 and ordered to pay $258,741 in restitution, pleaded guilty to three counts of filing false tax returns.
According to the plea agreement, Uba owned and operated TLC Prostaffing and Evergreen Health Care Connection — staffing businesses for nursing care facilities located in San Jose, Calif. On her 2001, 2002 and 2003 personal income tax returns, Uba admitted that she omitted a significant amount of gross receipts on her Schedule C (Profit of Loss from Business).
Check out our latest TRS IRS tax help newsletter for tax tips, IRS insider news, and income tax relief advice.
Many of our clients who retain our tax help services are interested in knowing how their life will change and when they can expect these changes to happen. In our Roadmap to Tax Resolution, we help you undertsand the process leading up to your IRS resolution – from the Free Consultation to helping you achieve IRS compliance and negotiating your tax settlement.
Resolving tax debt involves strategizing and re-positioning your finances to ensure as much success as possible. If you are in trouble with the IRS, our specialized staff of attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
News, commentary, insight, tips and humor from tax expert Michael Rozbruch
Michael Rozbruch is a Certified Tax Resolution Specialist, a member of the American Society of IRS Problem Solvers and a Maryland CPA.
IRS PROBLEMS?
If you find yourself in trouble with the IRS and need professional tax attorney and tax resolution services, call (888) 699-7630. Effective tax negotiation and representation means that your tax attorney, Certified Tax Resolution Specialist or CPA will take over all communications with the IRS, filing any delinquent tax returns to bring you to full IRS compliance while vigorously defending your rights as a taxpayer to permanently resolve your back taxes and IRS problems.
