Tuesday, November 27, 2018

New York Man Pleads Guilty to Stolen Identity Tax Refund Fraud


A Springfield Gardens, New York, resident pleaded guilty yesterday to an indictment charging him with nine counts of wire fraud, nine counts of aggravated identity theft, and 17 counts of aiding or assisting in the preparation and filing of false returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Richard P. Donoghue for the Eastern District of New York.
According to court documents, Oyeniyi Jaiyesimi, the owner of Pace Financial Services, a tax preparation business located in Springfield Gardens, New York used stolen IDs to file fraudulent tax returns with the Internal Revenue Service and to obtain refunds to which he was not entitled.  In addition, from 2013 through 2015, Jaiyesimi filed multiple false tax returns for clients that fraudulently claimed dependent exemptions.
Magistrate Judge James Orenstein scheduled sentencing for April 3, 2019, before District Court Judge Edward R. Korman.  Jaiyesimi faces a maximum sentence of 20 years in prison for each count of wire fraud, a mandatory minimum sentence of two years in prison for each count of aggravated identity theft, and a maximum sentence of three years in prison for each count of aiding or assisting in the preparation of false returns. He also faces a period of supervised release, restitution, forfeiture, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Richard P. Donoghue commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Mark McDonald and Eric Powers of the Tax Division, who are prosecuting the case.


Selig & Associates
 Aggressive New York City Tax Advocates 
We Solve IRS and New York State Tax Problems, Guaranteed. Specializing in Income, Payroll and Sales Tax Issues. IRS Audits, Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations and Tax Crimes, Installment Agreements and Payment Plans, Offers in Compromise and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 
Income, Payroll and Sales Taxes. 
Suspended Passport and Drivers License. 
Missing Tax Returns Prepared and Filed within 48 Hours. 
IRS Liens, Levies and Wage Garnishments. 
NYS Tax Warrants. 
Income and Sales Tax Audits. 
Payroll and Trust Fund Recovery Penalties. 
Criminal Investigations and Tax Crimes including Tax Evasion. 
Offers in Compromise and all other Tax Matters. 
We Negotiate Excellent Installment Agreements and Monthly Payment Plans
To Schedule a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 

Monday, November 26, 2018

Important Questions & Answers



Q. Do I Have Unpaid Income, Payroll and Sales Taxes? 
A. We Negotiate Excellent Installment Agreements and Payment Plans.

Q. Has My Passport or Drivers License been Suspended? 
A. We’ll Get Your Passport or Drivers License Reinstated. 

Q. Do I have Unfiled Tax Returns? 
A. We’ll Prepare and File Your Tax Returns in 48 Hours.

Q. Is the IRS or NYS Levying My Bank Account and and Garnishing My Wages? 
A. We’ll Get the Levies Released for You. 

If You Answered Yes to Any of These Questions, Call (212) 974-3435 for a Free No Obligation Consultation. 



Selig & Associates Aggressive New York City Tax Advocates We Solve IRS and New York State Tax Problems, Guaranteed. Specializing in Income, Payroll and Sales Tax Issues. IRS Audits, Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations and Tax Crimes, Installment Agreements and Payment Plans, Offers in Compromise and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 
Income, Payroll and Sales Taxes. 
Suspended Passport and Drivers License. 
Missing Tax Returns Prepared and Filed within 48 Hours. 
IRS Liens, Levies and Wage Garnishments. 
NYS Tax Warrants. 
Income and Sales Tax Audits. 
Payroll and Trust Fund Recovery Penalties. 
Criminal Investigations and Tax Crimes including Tax Evasion. 
Offers in Compromise and all other Tax Matters. 
We Negotiate Excellent Installment Agreements and Monthly Payment Plans

To Schedule a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 

Friday, November 23, 2018

Owner of Engineering Firm and CPA Convicted in Tax Scheme



He Caused Millions in Tax Loss and Obstructed IRS Efforts to Collect Money and Penalties Owed  A federal jury in convicted Wagdy Guirguis and Michael Higa of conspiracy to defraud the United States yesterday, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Kenji M. Price. In addition to the conspiracy conviction, Guirguis was also convicted of three counts of filing false corporate income tax returns, one count of failure to file a corporate income tax return, three counts of tax evasion, one count of corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue laws and one count of witness tampering. Higa was convicted of the conspiracy and one count of aiding and assisting in the preparation of a false tax return for one of Guirguis’ business entities. The convictions arise from a scheme to divert funds from Guirguis’ business entities for his own personal benefit and to avoid the payment of federal employment and income taxes.
“Employers who withhold employment taxes from their employees’ paychecks and choose to pocket those funds violate the trust of their employees and the United States,” said Principal Deputy Assistant Attorney General Zuckerman. “The Department of Justice will continue to identify and prosecute employment tax offenders, ensuring that such businesses and executives are held to account and do not gain an unfair advantage over honest employers who follow the law and pay their fair share.”
“Mr. Guirguis owed the Internal Revenue Service employment taxes and with the help of Mr. Higa, conspired to obstruct the Internal Revenue Service’s attempts to collect the tax by concealing income using a nominee entity and preparing false corporate and individual income tax returns,” said Acting Special Agent in Charge Troy Burrus. “The defendants’ actions to obstruct the Internal Revenue Service’s collection efforts are very serious. IRS-Criminal Investigation will continue to pursue employers, who collect these taxes and use the funds for personal gain.”
            According to court documents and evidence presented at trial, Guirguis operated numerous engineering businesses.  Higa, a certified public accountant, was the controller of these businesses.  Higa also served as a nominee officer of another entity controlled by Guirguis.  When the IRS determined Guirguis’ businesses owed over $800,000 in federal employment taxes and assessed a $812,000 penalty, Guirguis and Higa took various steps to place income and assets out of the IRS’ reach. For example, Guirguis and Higa used the nominee entity to fraudulently convey a condominium to Guirguis’ wife.  After an IRS revenue officer began questioning Mrs. Guirguis’ sole ownership of this condominium, Guirguis and Higa instructed a bookkeeper to alter the books and records in an attempt to conceal this transaction from the IRS.
From 2001 through 2012, Guirguis and Higa also used the nominee entity to divert approximately $1.3 million from Guirguis’ businesses for Guirguis’ personal use. As a result of their diversion and concealment, Guirguis’ 2010 through 2012 returns omitted $553,000 in income, resulting in a tax deficiency of $165,000.
In addition, Guirguis filed corporate income tax returns that fraudulently omitted millions of dollars of gross receipts.  For one of his businesses, Guirguis simply did not file a corporate tax return, thereby not reporting more than $1.7 million in gross receipts.
After the IRS levied the bank accounts of one business, Guirguis diverted incoming funds owed to that business, directing payment of the funds to a different business.  Guirguis also instructed a tenant to disregard IRS collection notices and pay rent directly to him rather than to the IRS.  Moreover, Guirguis made false and misleading statements to IRS revenue officers, all in an effort to obstruct the IRS’ efforts to collect on the taxes he and his companies owed.
To impede the criminal investigation into his tax violations, Guirguis falsely told an employee, who had testified before the grand jury, that he did not know about the false backdating done in the books of the nominee entity, and asked the employee to sign a false statement to that effect.
Guirguis and Higa face a maximum sentence of five years in prison each on the conspiracy counts. Guirguis faces a maximum sentence of five years on each of the tax evasion counts, three years in prison on each of the counts involving false tax returns and corrupt endeavors, and one year in prison for the count of failure to file a tax return, as well as a period of supervised release, restitution, and monetary penalties. Guirguis faces an additional maximum 20 year sentence for witness tampering. In addition to the maximum sentence of five years in prison on the conspiracy count, Higa faces a maximum sentence of three years on the aiding and assisting the filing of a false tax return count.
Selig & Associates Aggressive New York City Tax Advocates We Solve IRS and New York State Tax Problems, Guaranteed. Specializing in Income, Payroll and Sales Tax Issues. IRS Audits, Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations and Tax Crimes, Installment Agreements and Payment Plans, Offers in Compromise and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 
Income, Payroll and Sales Taxes. 
Suspended Passport and Drivers License. 
Missing Tax Returns Prepared and Filed within 48 Hours. 
IRS Liens, Levies and Wage Garnishments. 
NYS Tax Warrants. 
Income and Sales Tax Audits. 
Payroll and Trust Fund Recovery Penalties. 
Criminal Investigations and Tax Crimes including Tax Evasion. 
Offers in Compromise and all other Tax Matters. 
We Negotiate Excellent Installment Agreements and Monthly Payment Plans

To Schedule a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 

Tuesday, November 20, 2018

21 PEOPLE INDICTED IN $15 MILLION TAX FRAUD SCHEME THAT FORGED MILLIONS OF TAX STAMPS FOR CIGARETTES FROM NORTH CAROLINA

You'd better hire Selig & Associates


Takedown by Bronx DA, New York State Tax Dept., Homeland Security Investigations and NJ Treasury Office of Criminal Investigation Yields Equipment and Trove of Forged Tax Stamps 
Bronx District Attorney Darcel D. Clark, New York State Department of Taxation and Finance Acting Commissioner Nonie Manion, Brian Michael, Special Agent in Charge, Homeland Security Investigations Newark; and New Jersey State Treasurer Elizabeth Maher Muoio today announced that a joint investigation has resulted in indictments charging 21 people with forging millions of cigarette tax stamps and trafficking in illegal cigarettes that resulted in the evasion of more than $15 million in taxes and undercutting small businesses. 
District Attorney Clark said, “This scheme involved defendants who allegedly forged and printed millions of tax stamps in an apartment and a printing store. Truckloads of cartons of cigarettes per week were brought from North Carolina, and the defendants put the stamps on the packs and sold them to stores throughout the metropolitan area. This scheme allegedly cheated the state and city out of more than $15 million in taxes in the last six months alone. In addition, this scheme hurts law-abiding businesses that cannot compete with stores illegally selling untaxed, cheap cigarettes.” 
Acting Commissioner Manion said, “The bust of this sophisticated counterfeit tax stamp ring, the largest in Tax Department history, required deft coordination with our partners in law enforcement. I thank them for continuing to support our mission to break up criminal networks like this one and other operations that deprive communities of vital tax revenue and put honest business owners at a competitive disadvantage.” 
Special Agent in Charge Michael said, “This type of criminal activity generates huge profits for criminal organizations, both here and abroad, while depriving communities of the benefits of tax revenues and harming small businesses. Those who engage in such forgeries should know that the cooperative efforts of local, state, and federal law enforcement agencies will ensure that they are apprehended.” 
New Jersey State Treasurer Maher Muoio said, “This criminal enterprise sought to cheat taxpayers in New York and New Jersey out of millions of dollars by peddling truckloads of cigarettes with counterfeit tax stamps. Thankfully, the combined efforts of city, state, and federal law enforcement in New York and New Jersey shut down this operation and put the defendants out of business.” 
District Attorney Clark said 17 of the defendants were arrested in takedowns on November 14, 2018 through November 16, 2018 in locations in the Bronx and Yonkers. Nearly two million counterfeit tax stamps, a printing press and other equipment, as well as more than $120,000 cash were recovered. Authorities also recovered records revealing the transfer of tens of thousands of dollars out of the U.S. 
The defendants have been arraigned before Bronx Supreme Court Justice Martin Marcus. They are due back in court starting November 26, 2018. If convicted of the top count of the indictment, many of the defendants face 8 1/3 to 25 years in prison. 
The defendants are variously charged with first and second-degree Criminal Tax Fraud, second-degree Money Laundering, first-degree Criminal Possession of a Forged Instrument, first- degree Forgery, Cigarette and Tobacco Products Tax and fourth and fifth-degree Conspiracy. 
According to the investigation, between March 2018 and November 2018, defendants Luis Ortiz and Ernesto Guerrero allegedly designed stencils in order to print stamps and sell them for distribution throughout New York City and state without paying city and state taxes. Defendants Bolivar Clase and Nelsa Soler allegedly acquired special wax paper and other supplies, and Guerrero and Ortiz allegedly manufactured the stamps in Ernesto Printing, at 353 Rider Avenue in the Bronx, as well as in Ortiz’ residence at East 173 Street in the Bronx. 
Defendants Carlos Santos, Rafael Dominguez and Wilson Dominguez allegedly resold the stamps or affixed them to packs of cigarettes using a clothes iron and then sold the cigarettes. 
The other defendants allegedly transported the cigarettes from North Carolina or bought and sold stamps throughout New York City and Westchester County.

The case is being prosecuted by Assistant District Attorneys Griffin Kenyon, Sharif Hannan and Nina A. Vershuta, of the Tax and Organizational Fraud Unit; W. Dyer Halpern, Chief of the Tax and Organizational Fraud Unit, under the supervision of Tarek Rahman, Deputy Chief of the Investigations Division, and the overall supervision of Jean T. Walsh, Chief of the Investigations Division. 
The case was investigated by the NYS Tax Department’s Criminal Investigations Division Cigarette Strike Force, with Homeland Security Investigations Special Agent Eric Gallagher, and Supervising Special Agent Russell Glenn of the New Jersey Treasury, Office of Criminal Investigation. 
District Attorney Clark thanked Assistant District Attorney Mary Jo Blanchard, Counsel to the Investigations Division; Howard Feldberg of the Special Investigations Bureau, Gino Pelaez, Financial Analyst, and Trial Prep Assistant Ayisola Johnson, both of the Investigations Division; and the Bronx District Attorney’s Detective Investigators for their assistance with the case. District Attorney Clark also thanked Assistant District Attorneys Jennifer Shaw and Cristina Paquette of the Asset Forfeiture Unit, under the supervision of Beverly Ma, Chief of the Civil Litigation Bureau, for their assistance. 
An indictment is an accusatory instrument and not proof of a defendant’s guilt. 
DEFENDANTS ARRESTED 
CARLOS SANTOS, 61, 812 East 169 Street, Bronx
RAFAEL DOMINGUEZ, 52, 701 West 180 Street, Manhattan WILSON DOMINGUEZ, 49, 812 East 169 Street, Bronx
LUIS ORTIZ, 55, 1544 East 173 Street, Bronx
FELIX TAVEREZ, 44, 1523 Washington Avenue, Bronx
REYNA ALVAREZ, 50, 1980 7th Avenue, Manhattan 
ANTEMIA ALVAREZ, 30, 1980 7th Avenue, Manhattan 
ERNESTO GUERRERO, 57, 353 Rider Avenue, Bronx 
BOLIVAR CLASE, 62, 1212 Grant Avenue, Bronx
NELSA SOLER DEL ROSARIO, 57, 1212 Grant Avenue, Bronx 
AMARIAM GARCIA-CRESPO, 28, 1361 College Avenue, Bronx 
FELIPE CRUZ, 56, 37 Featherbed Lane, Bronx
NANCY LEBRON-DECRUZ, 52, 37 Featherbed Lane, Bronx 
FREDIS GUERRERO, 62, 325 Hawthorne Avenue, Yonkers 
JORGE TIGUA, 52, 2020 Morris Avenue, Bronx
FAUSTO LOPEZ, 54, 2585 Grand Concourse, Bronx 
YAHYA QUATAESH, 67, 39 Landscape Avenue, Yonkers 
UNAPPREHENDED DEFENDANTS 
SANDY BERAS
JESUEL PAULINO
FRANCISCO PAULINO
MARYLEIDA RODRIGUEZ DE GARCIA 

 Selig & Associates Aggressive New York City Tax Advocates We Solve IRS and New York State Tax Problems, Guaranteed. Specializing in Income, Payroll and Sales Tax Issues. IRS Audits, Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations and Tax Crimes, Installment Agreements and Payment Plans, Offers in Compromise and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 

Monday, November 19, 2018

Former IRS Employee Sentenced to Prison for Aggravated Identity Theft

She Used Information Supplied by Taxpayers to File Fraudulent Returns

A former employee for the Internal Revenue Service (IRS) was sentenced to serve 24 months in prison for aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Byung J. 

According to court documents, Stephanie Parker worked for the IRS as a Contact Representative.  Between September 2012 and March 2013, taxpayers called into the IRS for assistance, and Parker handled the taxpayers’ inquiries.  During the calls, Parker obtained the taxpayers’ Social Security numbers and addresses.  On at least five occasions, Parker used the taxpayers’ personal information to electronically file fraudulent tax returns in their names without their authorization.  Parker directed the fraudulent tax refunds to bank accounts controlled by her friends.  Parker, in turn, had the money withdrawn from at least one of those accounts, deposited a portion of the money into her own bank account, and used it for personal expenses.
In addition to the term of imprisonment imposed, Parker was also ordered to serve one year of supervised release and to pay $5,964 in restitution to the IRS.
Selig & Associates Aggressive New York City Tax Advocates We Solve IRS and New York State Tax Problems, Guaranteed. Specializing in Income, Payroll and Sales Tax Issues. IRS Audits, Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations and Tax Crimes, Installment Agreements and Payment Plans, Offers in Compromise and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 



Wednesday, November 14, 2018

CFO Pleads Guilty to Employment Tax Fraud (he should have hired Selig and Associates)


The former Chief Financial Officer pleaded guilty to willfully failing to pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. 

According to court documents, from 2010 to 2016, John Herzer was the CFO of AXO Staff Leasing (AXO), a professional employer organization.  Herzer handled all of the company’s finances and had final authority over which creditors to pay and when to pay them. Herzer was also responsible for collecting and paying to the IRS taxes withheld from AXO’s employees’ wages.  Despite this obligation, Herzer did not pay to the IRS AXO’s employment tax withholdings and instead used more than $4.9 million of those funds for his own benefit including paying personal expenses and transferring millions of dollars to his own bank accounts.  In total, Herzer’s fraudulent conduct caused a tax loss to the IRS of more than $13 million.
A sentencing date has not yet been scheduled. Herzer faces a statutory maximum sentence of five years imprisonment, as well as a term of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Robert Kemins and David Zisserson, who prosecuted the case.  Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Western District of Texas (Austin Division) for their substantial assistance.

Selig & Associates Aggressive New York City Tax Advocates We Solve IRS and New York State Tax Problems, Guaranteed. Specializing in Income, Payroll and Sales Tax Issues. IRS Audits, Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations and Tax Crimes, Installment Agreements and Payment Plans, Offers in Compromise and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 

Tuesday, November 13, 2018

NY Tax Department Kills the Competition. Cracking Down on Phony Tax Collection Scammers

Ask me about Online Dating

Real-life Examples of Tax Scams

New York taxpayers have been contacted by scammers who threaten arrest if a fictitious tax debt isn’t paid immediately. This is an obvious scam tactic. To make themselves appear more convincing, the scammers provide the victim with a phone number, address, and confirmation code specific to the transaction.
The caller then demands payment in person or with iTunes gift cards. The Tax Department would never accept this form of payment or require you to meet in person to pay a debt. Listen to a recording of a scam call here.
Con artists have also stolen the identities of New Yorkers who often first discover they’ve been victimized when their tax returns are rejected. The return is rejected because a cyber thief has already filed a return to claim a refund using the victim’s Social Security number.
Online scammers will also send emails that appear to be from the Tax Department, or other trustworthy sources, asking for private information. These phishing schemes are designed to trick you into sharing confidential information. Remember, the Tax Department never requests personal or financial data by email. Learn how to spot a bogus email here.
As their schemes advance, the Tax Department continually bolsters its defenses and resources to protect confidential taxpayer information and the victims of identity theft. Taxpayers should likewise take proactive measures to reduce the likelihood that they’ll become victims.
Report it
If you believe you’ve been contacted by a con artist posing as someone from the New York State Tax Department, visit the Tax Department’s Report fraud, scams, and identity theft webpage to learn how to report the incident. The Tax Department, working with our partner agencies as necessary, will investigate the case.
Aggressive New York City Tax Advocates We Solve IRS and New York State Tax Problems, Guaranteed. Specializing in IRS Audits, Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations and Tax Crimes, Installment Agreements and Payment Plans, Offers in Compromise and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 

Thursday, November 8, 2018

Consultant To Iranian Mission To The United Nations Pleads Guilty To Filing False Income Tax Return & Conspiring To Violate Sanctions Laws (does NYS hire illegal aliens to collect taxes?)



In Brooklyn Federal Court, Ahmad Sheikhzadeh, a “United States Citizen” and resident of New York City, pled guilty to filing a false income tax return that substantially understated the amount of cash salary he received from Iran’s Permanent Mission to the United Nations (IMUN) and conspiring to facilitate the transfer of funds to Iran without the required license from the Treasury Department in violation of the International Emergency Economic Powers Act (IEEPA).  
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Acting Assistant Attorney General for National Security Mary B. McCord, William F. Sweeney, Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (FBI), and Shantelle Kitchen, Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
According to court filings and facts presented during the plea proceeding, beginning in January 2008, Sheikhzadeh was employed as a consultant to the IMUN and received a regular salary, in cash, approximately once per month through an intermediary who was an official at the IMUN.  Sheikhzadeh was not a declared IMUN official.  From 2008 through 2012, Sheikhzadeh filed personal income tax returns that substantially understated the amount of income he received from his work for the IMUN.  In addition, distinct from his work for the IMUN, Sheikhzadeh provided money remitting (“hawala”) services to co-conspirators in the United States to facilitate investments in Iran and to direct disbursements from Iranian bank accounts.  Sheikhzadeh engaged in these money transfers without a license from the Treasury Department’s Office of Foreign Assets Control (OFAC) in violation of IEEPA.
When sentenced, Sheikhzadeh faces up to 23 years in prison.  He has agreed to pay over $147,000 in restitution and forfeiture.

Selig & Associates. Aggressive New York City Tax Advocates We Solve Tax Problems. Representation includes IRS Audits, New York Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations, Installment Agreements and Payment Plans, Offers in Compromise, Tax Crimes and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney call (212) 974-3435 or Contact Us Online. 

Wednesday, November 7, 2018

Tax Return Preparer Convicted of Filing False Income Tax Returns (he should have hired Selig and Associates)


A man was convicted by a federal jury today in the U.S. District Court for the Southern District of ten counts of aiding and assisting in the filing of false income tax returns and three counts of filing false income tax returns announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan.
According to court documents and evidence presented at trial, from 2012 through 2015, Richard Maurival prepared income tax returns for clients that claimed false education credits and false business expenses, and other deductions to inflate by thousands of dollars refunds paid by the Internal Revenue Service.  In addition to filing fraudulent income tax returns for his clients, Maurival falsified his own income tax returns, by not fully reporting the fees he earned in his tax preparation business for tax years 2012, 2013, and 2014.
U.S. District Judge James Ivan Cohn for the Southern District set sentencing for January 17, 2019. The defendant faces a maximum possible sentence of 3 years in prison on each count, as well as a period of supervised release, restitution, and monetary penalties. 

Selig & Associates. We Are The Most Effective Tax Advocates in New York City We Solve Tax Problems including IRS Audits, New York Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations, Installment Agreements, Offers in Compromise, Tax Crimes and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney call (212) 974-3435 or Contact Us Online. 

Tuesday, November 6, 2018

Man Pleads Guilty to Filing a False Tax Return That Failed to Report Over $2 Million Held in Offshore Israeli Bank Account



A man pleaded guilty to filing a false tax return that failed to report millions of dollars in foreign bank accounts and the resulting income, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Elie Waknine held millions of dollars in an offshore account in Israel at Bank Leumi Le-Israel B.M. from approximately 1994 to 2011.  Despite having this account, Waknine filed a tax return for 2007 that falsely claimed he did not have financial interest in or signature authority over any foreign financial accounts.  In an effort to further hide his money, Waknine instructed Bank Leumi to hold bank mail from delivery to the United States, and obtained access to his offshore funds through the use of “back-to-back” loans, which were designed to enable borrowers to tap their concealed accounts.  

These lending arrangements permitted Waknine to have funds issued by Leumi’s U.S. branch that were secretly secured by funds in his undeclared accounts in Israel.  In 2011, Waknine closed his Bank Leumi Israel account, but used the $2.4 million he received from closing the account to open a new undisclosed foreign bank account at another bank in Israel.  Over the period 1994-2015, Waknine held undisclosed foreign bank accounts in four banks in three countries, each with assets of at least $1 million. 
In December 2014, Bank Leumi entered into a deferred prosecution agreement, in which the bank admitted to conspiring from at least 2000 until early 2011 to aid and assist U.S. taxpayers to prepare and present false tax returns by hiding income and assets in offshore bank accounts in Israel and other foreign locations.  Under the terms of the deferred prosecution agreement, Bank Leumi paid the United States a total of $270 million and continues to cooperate with respect to civil and criminal tax investigations.
U.S. citizens, resident aliens, and permanent legal residents with a foreign financial interest in or signatory authority over a foreign financial account worth more than $10,000 are required to file an FBAR each year disclosing the account, and are required to report the account and any resulting income on their annual tax returns.
Waknine faces a maximum sentence of three years in prison, as well as a period of supervised release, restitution and monetary penalties. District Court Judge David O. Carter set Waknine’s sentencing for January 28, 2019.
Principal Deputy Assistant Attorney General Zuckerman commended special agents from IRS-Criminal Investigation, who investigated the case, and Tax Division Assistant Chief Elizabeth Hadden and Trial Attorney Eric Schmale, who are prosecuting the case.  The Tax Division thanks the U.S. Attorney’s Office for its assistance.


Selig & Associates. NYC's Most Effective Tax Advocates We Solve Income, Payroll and Sales Tax Problems. IRS and New York State Tax Representation includes Sales Tax Audits, Unpaid Payroll Taxes, Criminal Investigations, Installment Agreements and other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney call (212) 974-3435 or Contact Us Online. 

Monday, November 5, 2018

Realtor Sentenced to Prison for Filing a False Tax Return (you should have hired Selig & Associates)



A real estate salesperson was sentenced to 24 months in prison yesterday for filing a false income tax return that did not report income earned from the sale of marijuana, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Alex G. Tse. 
According to court documents, Charles T. Woods, from 2012 to 2014, deposited more than $1 million dollars in cash earned from his marijuana distribution business into over 25 bank accounts he controlled.  Woods hid this income from his tax return preparers by providing them with incomplete financial information, which in turn caused the filing of false tax returns for tax years 2012, 2013, and 2014.  The total tax loss caused by Woods’ conduct was over $450,000.
In addition to the term of imprisonment imposed, Woods was ordered to serve one year of supervised release and pay $466,707 in restitution to the Internal Revenue Service.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Tse commended special agents of IRS-Criminal Investigation, who investigated the case, as well as Tax Division Trial Attorney Christopher Magnani and Assistant U.S. Attorney José A. Olivera, who prosecuted the case. 

Selig & Associates. NYC's Most Effective Tax Advocates We Solve Income, Payroll and Sales Tax Problems. IRS and New York State Tax Representation includes Sales Tax Audits, Unpaid Payroll Taxes, Criminal Investigations, Installment Agreements and other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney call (212) 974-3435 or Contact Us Online. 

Sunday, November 4, 2018

Alec Baldwin Was Set Up For A Financial Shake Down - I May Not Agree With Baldwin’s Politics, But I Defend His Right To Express His Views



I heard about what happened with Alec Baldwin, and initially I felt the smug satisfaction of shandenfreud. But after these feelings subsided, I began to question the story and quickly came to reject the entire narrative. In fact, the incident that’s become fodder for so many talk shows, bloggers and haters of every stripe appears to have been a wholly manufactured event - and I suspect the entire peccadillo was staged by a crafty, conniving coterie of self-serving saboteurs and leftwing political operatives. Alec Baldwin is a devoted family man, a ferocious adversary and a fantastic actor, says David Selig of Selig & Associates.




Friday, November 2, 2018

Tax Department to New York "We're Just Following Orders!" Next Stop Nuremberg (Better call Selig and Associates)






Sad but true, the New York State Department of Taxation and Finance has unilaterally decided that New Yorkers must pay excessive penalties – even when they’re not at fault. Specifically, the Tax Department recently announced “Reliance on the advice of an accountant is no longer acceptable as reasonable cause for abatement of penalty” Apparently taking away people’s drivers licenses wasn’t enough, and as such, the State felt it should also circumvent your right raise an affirmative defense. 

Selig & Associates - NYC's Most Effective Tax Advocates We Solve Income, Payroll and Sales Tax Problems. IRS and State Tax Representation includes Sales Tax Audits, Unpaid Payroll Taxes, Criminal Investigations, Installment Agreements and other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney call (212) 974-3435 or Contact Us Online. 

Thursday, November 1, 2018

Putnam County Store Owner Charged with Selling Contraband Cigarettes NYS Tax Dept. suspends store’s registration to sell tobacco products. Selig and Associates


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The New York State Department of Taxation and Finance suspended the registration required for a Putnam County gas station to sell tobacco products after agents with the department’s Criminal Investigations Division discovered 21 cartons of contraband cigarettes.

The illegal cigarettes, bearing two different counterfeit New York State tax stamps, were seized after a routine cigarette inspection at the Citgo Mart, Inc., 1481 Route 22, in Brewster.

The store’s owner, Mohamed Aljahim, 36, of 45 Decan Smith Hill Road, Patterson, was charged with one felony and one misdemeanor. The defendant is scheduled to appear in court later this month.

“The charges in this case serve as a reminder to all shop owners across the state that selling untaxed cigarettes, no matter how large or small the quantity, is a serious crime that won’t be tolerated,” said Acting Commissioner Nonie Manion. “We will continue to work with prosecutors and all levels of law enforcement as we pursue these cases.”

All cigarettes for retail sale in New York State must be purchased by a licensed distributor, and retail dealers must be in possession of purchase invoices showing that the taxes on the cigarettes have been paid. Those found in possession of untaxed cigarettes can face fines of up to $600 per carton as well as a prison sentence.

A criminal complaint is only an accusation; the defendant is presumed innocent until proven guilty. The case will be prosecuted by the Putnam County District Attorney’s Office.

NYC's Most Effective Tax Advocates Selig & Associates Solves Income, Payroll and Sales Tax Problems. Tax Representation includes Sales Tax Audits, Unpaid Payroll Taxes, Criminal Tax Investigations, Installment Agreements and other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney call (212) 974-3435 or Contact Us Online. 

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