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Tuesday, August 11th, 2009
The owner of several bars in Scottsdale, Ariz., was sentenced to 24 months in prison after pleading guilty to four counts of tax evasion for the year 2003. The total amount evaded was more than $500,000.
Brian C. Roehrich, 40, of Phoenix, attempted to evade the income tax due while he was the president and sole owner of several bars and nightclubs.
At the time of his guilty plea, Roehrich admitted that he established procedures to maintain a separate accounting of cover charge revenue collected from the patrons of one establishment and a portion of the revenue collected from the patrons of another establishment. The cover charge and other revenue were stored separately from the claimed corporate revenue and diverted from the corporate structures for the personal benefit of Roehrich.
Taxes are only a burden if you make them so! The only conclusion I’ve seen to evading taxes is earning prison time. If you need assistance managing your taxes, Tax Resolution Services is here to help you find tax relief. We offer a free tax consultation where we can review smart tax solutions such as IRS payment plans, IRS offer in compromise program and more! Our tax attorneys are standing by to help you. Sign up for your free tax consultation online or call us at 1-866-IRS-PROBLEMS (1-866-477-7762).
Tags: Free Tax Consultation, IRS Installment Agreements, IRS offer in compromise, IRS payment plan, Offer in Compromise program, tax attorney, tax cheat, tax evasion, tax help, tax relief, tax resolution, tax solution
Posted in IRS Installment Agreements, IRS Times and Inquirer, Offers in Compromise | No Comments »
Tuesday, August 11th, 2009
The current gloomy economy has put many ordinary law-abiding taxpayers in IRS trouble for unpaid taxes.
In response to this dire situation, Congress has been working steadfast to create a number of tax breaks for Americans who are struggling to make ends meet. In Feburary of 2009, Congress passed the Economic Recovery and Reinvestment Act of 2009. The nearly $800 billion economic stimulus package offers significant tax incentives.
However, due to the temporary nature of these tax breaks, taxpayers must make haste and take advantage of these incentives before they expire. Read on to see if you qualify for any of these tax breaks that will expire in 2009:
* First-time homebuyer credit. This credit reaches $8,000 for purchases between January 1 and November 30, 2009. Taxpayers must be qualified buyers and satisfy income requirements. Eligible taxpayers also can file an amended 2008 tax return to receive the credit sooner.
* Motor vehicle sales tax deduction. Taxpayers can take an extra standard deduction for state and local sales taxes paid on the purchase of a new vehicle and, in states without a sales tax, taxpayers can deduct other fees to take advantage of the temporary motor vehicle sales tax deduction enacted as part of the 2009 Recovery Act. The amount of the deduction is limited to the portion of the state sales or excise tax imposed on the first $49,500 of the purchase price of the vehicle and is effective for vehicles purchased between February 17 and December 31, 2009. Read about other new vehicle tax incentive programs.
* COBRA premium assistance. Individuals laid off from their jobs between September 1, 2008 and December 31, 2009 meeting income limits may qualify for nine months of COBRA premium assistance under the 2009 Recovery Act. Individuals pay 35 percent of the COBRA premium and employers must treat that as full payment. Employers claim a credit for the other 65 percent of the premium on their payroll tax returns.
* Economic recovery payments. The 2009 Recovery Act authorized one-time payments of $250 to individuals receiving Social Security benefits, disabled veterans and others on fixed incomes. The Social Security Administration began sending the bulk one-time payments by mail and direct deposit in May 2009.
* Exclusion of unemployment benefits. Individuals receiving unemployment benefits in 2009 can exclude the first $2,400 from their income. The exclusion is only available for 2009.
* Tax evasion forgiveness. In an effort to shore up tax revenues, the IRS is encouraging taxpayers to disclose unreported foreign bank accounts and assets. In exchange for full disclosure and paying all back taxes plus interest and penalties, the IRS agrees not to criminally prosecute tax evaders and to waive the 75-percent fraud penalty. The settlement offer is only available up to September 23, 2009.
Source: CCH (http://www.cch.com).
If you qualify for any of the above tax break, the best thing to do is to apply for these tax savings before they expire. The current tax climate is unstable as President Obama plans to increase tax rates for the wealthy while giving middle income earners tax breaks. In Obama’s tax plan, individual tax cuts would total $736.5 billion over 10 years and business tax cuts would total $71 billion over 10 years.
Tax Resolution Services is a team of tax attorneys and tax specialists that can help you! We even offer tax advice and answer questions – for free! – on our tax blog! 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
Tags: COBRA premium assistance, Congress tax breaks, delinquent tax returns, delinquent taxes, Economic Recovery and Reinvestment Act of 2009, economic recovery payments, exclusion of unemployment benefits, first time homebuyer credit, IRS amnesty period, IRS debt, IRS problem solver, irs problems, IRS tax problems, motor vehicle sales tax deduction, Obama tax proposal, tax breaks, tax evasion, tax evasion forgiveness, tax expert, tax help, tax incentives, tax relief, tax resolution, Tax Tips
Posted in Tax Debt Help News, Tax Relief News, Tax news and tips, tax help | 2 Comments »
Friday, August 7th, 2009
If you are being accused of tax evasion by the IRS but you have reasonable cause to fight the charges, you will need to provide concrete evidence to substantiate your claim. With IRS audits on the rise due to stricter enforcement, it will be wise to keep important records that may later help you prove your innocence to the IRS.
Due to a lack of substantial evidence, a highly educated CPA was not able to withdraw his guilty plea to tax evasion charges.
CCH (http://tax.cchgroup.com) reports:
CPA Not Permitted to Withdraw Guilty Plea; Failure to Show Sufficient Reason for Requesting Withdrawal
A federal district court properly refused to grant a CPA’s request to withdraw his guilty plea with respect to a charge of tax evasion. The individual had pled guilty to tax evasion and filing false tax returns while serving as an IRS agent. His unsupported argument asserting innocence and an alleged misunderstanding of the terms of the plea agreement failed to show a fair and just reason for requesting the withdrawal.
His former representation admitting his guilt and specifically admitting the factual grounds for the charge was entitled to a presumption of verity. Further, he failed to meet his substantial burden to meaningfully reassert his innocence since he did not produce his accountant’s report stating that he did not owe taxes, documentation of the substantial loans he allegedly made, evidence that he used trust money to benefit its beneficiaries rather than to pay for his personal expenses or an amended tax return reporting the return of embezzled money at a loss. He was highly educated; therefore, his contention that he believed that the plea agreement allowed for a post-plea reassessment of guilt was implausible.
In order to fight the IRS effectively, you need expert tax help —seeking out a tax attorney is one of the most effective ways you can ensure a better chance of winning your case.
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
Tags: delinquent taxes, failing to file federal tax return, FALSE TAX RETURNS, Free Tax Consultation, IRS audits, IRS debt, IRS help, IRS problem solver, irs problems, tax attorney, tax audit, tax audits, tax cheats, tax fraud, tax lawyer, tax problems, tax resolution expert, tax settlement, Tax Tips
Posted in Seeking Professional Tax Help, Tax news and tips, tax help | No Comments »
Friday, July 31st, 2009
As a part of recent IRS efforts to find wealthy Americans who have been deliberately evading taxes by using offshore bank accounts, a deal has been reached today with UBS. The US Government and Switzerland have come to an agreement today that will force the Swiss bank, UBS, to turn over 52,000 names of suspected tax evaders.
According to the New York Times (www.nytimes.com), “UBS and the Swiss government have been battling efforts by the Justice Department to force the bank to disclose the names of 52,000 American clients of UBS suspected of offshore tax evasion. The efforts threatened to peel back layers of Swiss banking secrecy, the backbone of the world’s private banking industry, and have rattled UBS, the world’s largest private bank and a pillar of the Swiss economy.”
A hearing scheduled for Monday in Miami was postponed until Aug. 10, at which point more details are expected to be released. The judge scheduled another conference call with parties in the case for next Friday.
Secretary of State Hillary Rodham Clinton is scheduled to meet with the Swiss foreign minister, Micheline Calmy-Rey, in Washington on Friday to discuss the matter. The issue has unsettled the Swiss banking industry and escalated into a diplomatic incident between the two sides.
Going after offshore bank account holders is one of the major ways that the IRS is trying to close its $345 billion annual tax gap. There are many implications in the latest UBS development. Many innocent offshore account holders who did not use the Swiss account to evade taxes may be heavily investigated. It is important for innocent offshore account holders to know their rights and seek a tax lawyer’s representation when necessary.
The tax evaders who are guilty will be facing severe IRS penalties and interests. Learn how you can save your financial future through penalty abatement.
Avoid getting in IRS trouble in the first place. If you have an offshore account, you must know the IRS rules that require you to disclose all of your income (domestic and international). Read the IRS rules for foreign bank and financial accounts reporting (FBAR).
Read the full article on the latest UBS settlement.
Don’t fight the IRS alone. If you find yourself in trouble with the IRS, 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
Tags: Add new tag, delinquent tax returns, delinquent taxes, FALSE TAX RETURNS, IRS debt, IRS enforcement, IRS help, IRS problem solver, irs problems, Michael Rozbruch, tax advice, tax attorney, tax audit, tax cheat, tax cheats, tax evasion, tax fraud, tax settlement
Posted in Seeking Professional Tax Help, Tax news and tips | 3 Comments »
Thursday, July 30th, 2009
If you deliberately evade taxes by underreporting your income, you cannot always blame your accountant for the discrepancy. Underreporting income to skimp paying taxes is criminal and the penalties can be financially debilitating depending on the amount you owe.
Recently, an individual was convicted for tax evasion because he did not provide sufficient proof that he was unaware of the discrepancy between his reported income and his actual income. CCH (http://tax.cchgroup.com) reports:
Conviction for Tax Evasion and Filing False Return Proper; Deliberate Ignorance Instruction Properly Given
A federal district court properly convicted an individual of tax evasion and filing a false tax return. The court’s deliberate ignorance instruction to the jury was properly given. The individual kept a running log of the financial status of each case; therefore, he was well aware of his law firm’s finances. Moreover, his personal expenditures and submission of a financial statement to a bank indicated his knowledge that both his corporate and individual gross incomes were larger than those reported.
Considering the significant disparity between the income reported by the individual and the actual income earned through his law practice, the jury was entitled to disbelieve his excuse that he relied on his hired assistant and accountant to file accurate returns and signed the returns without reading them. A rational jury could reasonably conclude that the individual knew how much money his practice made and that he misreported that figure willfully and with specific intent to violate the law. Further, his failure to disclose in his offer-in-compromise (OIC) the possibility of receiving a substantial contingency fee if his client prevailed in a matter, his continued failure to specify that matter in an addendum submitted after his client prevailed in the matter and his denial of any involvement in his client’s matter indicated that he committed tax evasion.
Make sure that you’re following the rules when filing for taxes. The money you save from tax evasion is not worth the IRS tax penalties that will be imposed on you when you get caught. Don’t risk getting into heavy tax trouble. You can always contact a professional tax lawyer if you are unsure of your tax return filings.
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
Tags: delinquent tax returns, failure to file, IRS debt, IRS help, IRS problem solver, Michael Rozbruch, Offer in Compromise, tax cheat, tax evasion, tax expert, tax help, tax lawyer, tax problems, tax relief, tax resolution expert, tax returns, Tax Tips, unfiled tax returns
Posted in Offers in Compromise, Seeking Professional Tax Help, tax help | 1 Comment »
Tuesday, July 28th, 2009
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.
Listen to the full interview for more tax tips!
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
Tags: IRS audits, IRS debt, IRS enforcement, IRS help, IRS problem solver, tax audit, tax cheats, tax debt, tax evasion, Tax Tips
Posted in Tax news and tips, tax help | No Comments »
Saturday, July 25th, 2009
Mark Arthur Henriksen, of Monmouth, Ore., was sentenced to 12 months and a day in prison after pleading guilty to one count of income tax evasion for the 2001 tax year. Henriksen was a principal of Applied Technical Systems, a business in Lake Oswego. Henriksen evaded the assessment of his income taxes in 2001 by instructing employees of ATS to make his bonus checks payable not to him but instead to third parties.
Tax Resolution Services helps people every day find tax relief. Read our Tax Help Testimonials on our website. Tax evasion is not the answer! Our tax attorneys can guide you to a tax resolution that makes sense. See a complete list of our tax services. We’ll find something that works for you – call us today – 1-866-IRS-PROBLEMS!
Tags: evade taxes, irs problems, tax attorneys, tax evasion, tax help, tax relief, tax resolution services, tax resolution testimonials, tax services, tax testimonials
Posted in IRS Tax Cases, IRS Times and Inquirer | No Comments »
Friday, July 24th, 2009
Jon Dale Adams of Jackson, Miss., was sentenced to 18 months in prison, to be followed by one year of supervised release, for filing a false federal income tax return in 2000. Adams was also ordered to pay a $5,000 fine.
The former owner of a strip club, Adams was indicted by a federal grand jury in February 2007. According to the indictment, Adams was charged with filing false returns that failed to report substantial gross receipts from his business for calendar years 1999 and 2000.
“The prosecution of individuals who intentionally conceal income and evade taxes is a vital element in maintaining public confidence in our tax system,” said Michael J. De Palma, Special Agent in Charge of IRS Criminal Investigation, New Orleans Field Office.
I wrote about another strip club owner – who once was an IRS Agent – who evaded taxes too! Unbelievable! Uncle Sam wants you - to file your taxes and Tax Resolution Services can help! If your taxes are overwhelming, there are tax services optionsthat may work for you such as the IRS’s Offer in Compromise program or tax payment plans, also known as the Installment Agreement. Don’t wait! Call us today at 1-866-IRS-PROBLEMS and our tax attorneys and tax specialists will help you solve your tax problems!
Tags: filing false federal tax return, Installment Agreement, IRS problem solver, irs problems, Offer in Compromise, solve tax problems, tax attorney, tax evasion, tax fraud, Tax Payment Plans, tax problems, tax resolution services, tax solutions, tax specialist
Posted in IRS Tax Cases, IRS Times and Inquirer, Offers in Compromise | No Comments »
Thursday, July 23rd, 2009
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.
Tags: Back Taxes, failing to file federal tax return, FALSE TAX RETURNS, filing false tax return, Free Tax Consultation, IRS debt, IRS enforcement, IRS problem solver, irs problems, Michael Rozbruch, tax evasion, tax lawyer, tax resolution, tax resolution services
Posted in Seeking Professional Tax Help, Tax Scams, Tax news and tips, tax help | No Comments »
Wednesday, July 22nd, 2009
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.
For the full press release on Costly Tax Evasion Schemes.
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.
Tags: Back Taxes, delinquent taxes, IRS debt, IRS enforcement, IRS problem solver, IRS tax audits, IRS tax problems, Michael Rozbruch, tax attorney, tax audit, tax cheat, tax cheats, tax evasion, tax expert, tax fraud, tax lawyer, tax resolution
Posted in IRS Question Corner, Seeking Professional Tax Help, Tax Debt Help News, Tax Liens and Levies, Tax news and tips, tax help | No Comments »
Wednesday, July 15th, 2009
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.
By Brant Goldwyn, CCH News Staff
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Tags: delinquent tax returns, delinquent taxes, failing to file federal tax return, IRS enforcement, IRS help, irs problems, IRS tax problems, Michael Rozbruch, stricter regulatory goals, tax expert, tax gap, tax relief, tax resolution, tax resolution expert, tax settlement, Tax Tips, Voluntary Disclosure
Posted in Tax news and tips, Voluntary Disclosure | 2 Comments »
Tuesday, July 7th, 2009
When taxpayers file for bankruptcy, some taxes and penalties may be discharged–giving people a chance of obtaining tax relief. When someone files for bankruptcy, the “automatic stay” stops taxing authorities from collection actions including seizures and wage garnishments. The extent of the tax relief from bankruptcy may depend on a few factors including: the kind of tax involved, the age of the tax, whether a return was filed, and the chapter of bankruptcy selected. When filed correctly, taxpayers who are bankrupt will be able to discharge some of their tax penalties.
However, if the IRS detects any unlawful tax conduct (such as deliberate tax evasion) during the review process for discharging tax liabilities, the discharge may be denied.
CCH (http://tax.cchgroup.com/) reports:
Tax Liabilities Nondischargeable in Bankruptcy; Debtor Willfully Attempted to Evade Payment of Taxes
A debtor’s pre-petition tax liabilities were not dischargeable in bankruptcy because he willfully attempted to evade or defeat paying his taxes. The record revealed the debtor had placed property in another person’s name in an attempt to conceal assets from the IRS, a pattern of failing to timely file tax returns and pay taxes and conduct that amounted to a willful attempt to evade or defeat payment of taxes.
The debtor’s failure to timely file his returns or make any attempt to pay past-due taxes when he had substantial income was a knowing and deliberate decision on his part. He could not avoid the exception to dischargeability by arguing that his failure was attributed to a mistake or inadvertence. He knew that he had a duty to file tax returns timely and pay taxes, but he intentionally failed to do so. Instead, he made extravagant purchases of non-essentials, gave monetary gifts to relatives, purchased a lavish home and spent generously on its renovation.
Tax Resolution Services can help you understand whether your taxes are eligible to be discharged in bankruptcy. If you have deliquent tax returns that could jeopardize your eligibility, get help from the specialized staff of tax attorneys, CPAs, EAs and tax professionals at TRS. Visit Tax Resolution Services for a free income tax relief consultation or call us at 866-IRS-PROBLEMS (1-866-477-7762).
Tags: Back Taxes, delinquent tax returns, delinquent taxes, failing to file federal tax return, FALSE TAX RETURNS, Free Tax Consultation, IRS audit, IRS debt, IRS debt resolution, IRS help, irs problems, IRS tax problems, Michael Rozbruch, tax relief, tax resolution, tax resolution expert, tax resolution services, Tax Tips
Posted in Discharging Taxes in Bankruptcy, Penalty Abatement, Seeking Professional Tax Help, Tax Debt Help News, Tax Relief News, Tax news and tips, tax help | 2 Comments »
Tuesday, July 7th, 2009
A Florida businessman was sentenced 22 years and six months in federal prison for, among other charges, for conspiring to commit wire fraud, obstructing an agency proceeding and impeding the IRS, and failing to remit payroll taxes.
Frank L. Amodeo, 48, of Orlando, pleaded guilty and was also ordered to forfeit more than $1 million seized from various accounts, three homes, several luxury automobiles, commercial real estate, a Lear Jet and his corporations. The court imposed a money judgment of approximately $181 million, which is amount of the stolen payroll tax funds.
According to court documents, Amodeo, and his co-conspirators controlled several companies. They conspired to absolve themselves and the companies they controlled of the responsibility for existing payroll tax liabilities and to divert payroll tax funds paid by clients to the companies that Amodeo and his co-conspirators controlled.
Wouldn’t you rather be my Tax Client of the Monthand not Mr. Amodeo facing 22+ years in federal prison? Tax evasion does not work! Tax Resolution Services offers a free tax consultation from one of our Tax Relief Consultants – simply fill out the online form! Tax Resolution Services can help you get your tax life in order!
Tags: failing to remit payroll taxes, Free Tax Consultation, guilty of tax evasion, impeding IRS, tax cheat, Tax Client of the Month, tax evasion, tax fraud, tax relief, tax relief consultant, tax resolution services, wire fraud
Posted in Back Taxes, Tax news and tips | 1 Comment »
Wednesday, July 1st, 2009
Swiss banks are shutting the accounts of Americans as the Internal Revenue Service accelerates the hunt for tax dodgers. The country’s biggest banks, UBS AG and Credit Suisse Group AG, have told Americans to move their money into specially created units registered in the U.S., or lose their accounts. Smaller private banks such as Geneva-based Mirabaud & Cie. are closing all accounts held by U.S. taxpayers.
After the American government’s legal battle to get UBS to disclose the owners’ names for 52,000 accounts in which Americans evaded taxes – the IRS announced a new Voluntary Disclosure process that offers leniency to taxpayers with unreported income relating to offshore transactions. Along with lower tax penalties, those who come forward, pay their taxes, and comply with the IRS are expected to avoid criminal prosecution.
Until now, the IRS could impose penalties of at least 50% for all years in which an account wasn’t disclosed. In some cases, that could exceed the value of the offshore holdings. But voluntary disclosure isn’t about how much you end up paying, it’s about being able to avoid jail time.
While the IRS has since increased pressure on Americans to disclose offshore accounts, Swiss banks must comply with U.S. tax rules and register with the Securities and Exchange Commission to accept a investment from a U.S. person.
According to Bloomberg:
While the banks declined to say how many people are affected, more than 5 million Americans live abroad, including about 30,000 in Switzerland, according to estimates from American Citizens Abroad in Geneva. Swiss banks must register with the Securities and Exchange Commission to provide services for those customers.
SEC registration means clients don’t enjoy the protection of Swiss banking secrecy laws, which make it a crime for money managers to disclose the names of clients without their consent. Switzerland said in March it would cooperate with international tax evasion probes after Zurich-based UBS admitted helping U.S. clients avoid taxes.
The IRS has since increased pressure on Americans to disclose offshore accounts as it seeks to recoup an estimated $50 billion in unpaid taxes. The agency set a deadline of Sept. 23 for taxpayers to declare all foreign accounts or face possible criminal prosecution that could result in as much as 10 years in prison and $500,000 in penalties.
Presumption of Guilt
U.S. citizens must file tax returns, report offshore accounts that contain more than $10,000 and pay tax on any income earned, no matter where they live. To take advantage of the amnesty program, taxpayers must file six years of returns, plus pay back taxes and a penalty, according to the IRS.
If you owe the IRS more than you can afford to pay, get help from the specialized staff of tax attorneys, CPAs, EAs and tax professionals at TRS. Visit Tax Resolution Services for a free income tax relief consultation or call us at 866-IRS-PROBLEMS (1-866-477-7762).
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Posted in Tax news and tips | 4 Comments »
Tuesday, June 30th, 2009
In economic times when people are strapped for cash, it is tempting to cut corners when filing taxes in order to save some of your disposable income. After all, small tax savings from many different areas can add up to a substantial amount of money. However, no matter how tempting tax evasion may seem – whether it is small or large in sum – it is a terrible financial strategy for saving your money. Tax evasion is a severely punishable act and you will find yourself in very deep tax trouble with the IRS if you choose this route.
Recently, the IRS found a man guilty of attempting to evade both his personal taxes and FICA taxes by deliberately misreporting his income. The trail of evidence led to his guilty conviction.
CCH (http://tax.cchgroup.com/) reports:
Evidence Supported Conviction for Attempted Tax Evasion (Platts, CA-3)
June 22, 2009-An individual was properly convicted of willfully attempting to evade personal taxes and FICA taxes owed by his corporation because evidence at trial established the individual’s willfulness, the existence of a tax deficiency and an affirmative act constituting attempted evasion of the taxes. The government showed that the individual mischaracterized income he received from the corporation as a loan repayment, claimed unsubstantiated capital loss deductions on his return and recruited a bookkeeper to make the company’s tax documentation reflect that he did not receive a salary. Moreover, the individual, as the corporation’s sole shareholder and president, was responsible for corporation’s unpaid withholding taxes, but sought to avoid the tax liability by under-representing his assets and failing to disclose his income from other business ventures.
Instead of illegal tax evasion, it would be wise to invest time to learn what is legally tax-deductible. You may find that there are many ways through which you will be able to pay less tax and save money. Of course, it is also extremely important that you do not mischaracterize your personal expenses (not tax-deductible) and business expenses (tax-deductible). If you categorize your personal expenses as business expenses, you are committing tax crime and may be penalized by the IRS.
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Posted in IRS Tax Cases, Seeking Professional Tax Help, Tax Debt Help News, Tax Help Definitions, Tax Relief News, Tax Resolution Options and Alternatives, Tax news and tips, tax help | 5 Comments »
