Wednesday, May 29, 2019

Owner of Scrap Metal Business Sentenced for Tax Evasion




Nellie Brown Boxx was sentenced to 18 months in prison without parole, and ordered to pay $366,846 in restitution to the IRS and the Missouri Department of Revenue. Boxx, the owner of Frank Metal Company, pleaded guilty on Feb. 19, to tax evasion. Boxx assisted tax preparers to prepare tax returns that contained false information. For example, Boxx classified purchases such as food items, drinks, jewelry, dry cleaning, household items and high-end clothing as business expenses for her scrap metal company. Boxx received $320,345 in taxable income in 2008, and owed $87,123 in federal income tax. In addition, Boxx submitted a false 2008 Form 1040 to a bank in order to receive a financial loan and admitted that she made false statements to IRS agents, such as falsely claiming that business documents had been destroyed by water damage from a leak in the roof.
New York City Tax Accountant and Tax Attorney Our New York City offices are conveniently located and easily accessible by car, train and subway. Civil and criminal tax consultations are confidential and legally privileged. Same day and emergency appointments scheduled Monday through Friday. For immediate assistance call (212) 974-3435 or contact us Online. 

Restaurant Tax Accountant and Tax Attorney We negotiate excellent installment agreements and provide restaurant owners with effective sales tax and audit representation, including unfiled tax returns and all Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

Business Tax Accountant and Tax Attorney We negotiate affordable repayment plans and provide our business clients with effective payroll tax and audit representation, obtaining government contracts with a tax lien, compliance checks, missing tax returns and Workers Compensation audits. For immediate assistance call (212) 974-3435 or contact us Online. 

Sentenced to the Slammer for Failing to File Federal Income Tax Returns



Anthony Rolfe was sentenced to 22 months in prison, one year of supervised release and ordered to pay $100,490 in restitution to the IRS. Rolfe pleaded guilty in March 2015 to an Information charging him failure to file income tax returns. Rolfe was employed by Dr. LeeRoy McCurley at a pain management clinic in Dallas, known as Mid-City Medical Clinic.  As part of his job, Rolfe picked up the clinic’s earnings and delivered them to McCurley, in person or through McCurley’s office in Grand Prairie, Texas. Rolfe also delivered office supplies to and distributed fliers for the clinic. For these tasks McCurley paid Rolfe thousands of dollars per week in checks that Rolfe deposited into a bank account in the name of Platinum A&C Group, LLC, an entity for which Rolfe was a managing partner. Bank records showed that Rolfe deposited more than $500,000 in payments from McCurley in 2010 and 2011 and used the majority of the money on clothing and jewelry, hotel and resort stays, nightclub tabs, and yacht rentals.

New York City Tax Accountant and Tax Attorney Our New York City offices are conveniently located and easily accessible by car, train and subway. Civil and criminal tax consultations are confidential and legally privileged. Same day and emergency appointments scheduled Monday through Friday. For immediate assistance call (212) 974-3435 or contact us Online. 

Restaurant Tax Accountant and Tax Attorney We negotiate excellent installment agreements and provide restaurant owners with effective sales tax and audit representation, including unfiled tax returns and all Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

Business Tax Accountant and Tax Attorney We negotiate affordable repayment plans and provide our business clients with effective payroll tax and audit representation, obtaining government contracts with a tax lien, compliance checks, missing tax returns and Workers Compensation audits. For immediate assistance call (212) 974-3435 or contact us Online. 

Tax evasion is when a taxpayer gets caught, gets arrested, goes to trial, is found guilty, loses everything and is sent straight up the river.

Tuesday, May 28, 2019

Dentist Sentenced for Tax Evasion


George Fenzell of Douglas, was sentenced to 16 months in prison, one year of supervised release and ordered to pay $157,407 in restitution to the IRS. In November 2014, Fenzell pleaded guilty to tax evasion. Fenzell operated a dental office in Shrewsbury, Massachusetts and from 1999 through 2012, Fenzell engaged in conduct intended to obstruct the IRS. For the years 1999 through 2007, he failed to file timely federal income tax returns and concealed income that he earned from his dental practice from the IRS. Additionally, Fenzell failed to file his tax returns for 2008 through 2011. He concealed his dental business receipts by diverting the funds through nominee entities, including River Valley Dental. He used multiple nominee bank accounts to conceal his ownership of his income and assets. Fenzell also titled and registered a Lincoln Navigator and Ducati motorcycle with another nominee entity, Smiling Trust, and made extensive use of cash in order to conceal his fraud from the IRS.

New York City Tax Accountant and Tax Attorney Our New York City offices are conveniently located and easily accessible by car, train and subway. Civil and criminal tax consultations are confidential and legally privileged. Same day and emergency appointments scheduled Monday through Friday. For immediate assistance call (212) 974-3435 or contact us Online. 

Restaurant Tax Accountant and Tax Attorney We negotiate excellent installment agreements and provide restaurant owners with effective sales tax and audit representation, including unfiled tax returns and all Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

Business Tax Accountant and Tax Attorney We negotiate affordable repayment plans and provide our business clients with effective payroll tax and audit representation, obtaining government contracts with a tax lien, compliance checks, missing tax returns and Workers Compensation audits. For immediate assistance call (212) 974-3435 or contact us Online. 

Insurance Salesman Sentenced on Fraud and Tax Charges




Paul Parker was sentenced to 36 months in prison and ordered to pay $72,805 to the IRS and the Missouri Department of Revenue. Parker pleaded guilty in April to one count of mail fraud and three counts of failure to file a tax return. Parker held an account in the name of American Investors, Inc. for the purported purpose of receiving funds from clients to purchase life insurance annuities. Rather than purchase annuities on his clients’ behalf, Parker spent their money on personal expenses and gambling. In the course of the scheme, Parker also used monies contributed by later clients to fund repayments to prior clients. In total, Parker took in approximately $259,168 through false and fraudulent pretenses, resulting in a loss to investors of approximately $209,168. Parker also admitted to failing to file federal income tax returns for three years from 2010 to 2012.

Restaurant Tax Accountant and Tax Attorney We negotiate excellent installment agreements and provide restaurant owners with effective sales tax and audit representation, including unfiled tax returns and all Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

Business Tax Accountant and Tax Attorney We negotiate affordable repayment plans and provide our business clients with effective payroll tax and audit representation, obtaining government contracts with a tax lien, compliance checks, missing tax returns and Workers Compensation audits. For immediate assistance call (212) 974-3435 or contact us Online. 

Friday, May 24, 2019

Tax Protestor Sentenced to the Slammer for Failing to Pay Federal Taxes


Tami Mae May was sentenced to 24 months in prison for failing to pay federal taxes for more than seven years. May pleaded guilty to obstruction of due administration of Internal Revenue laws. From 1998 through 2004, May failed to file any income tax returns for the excavating business she ran with her husband, despite that fact that the business earned substantial income during that time. When notified by the IRS in April 2005 that the business owed tax debt, penalties and interest, May embarked on an eight-year campaign of frivolous filings, in an effort to obstruct the administration of Internal Revenue laws. May filed a host of fake documents with the IRS, including a “zero income” tax return, Forms 1099-OID falsely claiming that her husband had made payments to various IRS Revenue Officers, falsely claiming that the Mays or their business had received “original issue discounts” and had “federal tax withheld” by various banks and credit card companies, and forms claiming that the Mays were not United States Citizens, but instead were permanent residents of the “Kingdom of Heaven.” May also made nonsensical tax-defier-scheme-related statements to the IRS, including that her social security number was her “corporate fiction’s” social security number, that her family’s business was a foreign trust of which she was the trustee, and that there is no such thing as money.
New York City Tax Accountant and Tax Attorney Our New York City offices are conveniently located and easily accessible by car, train and subway. Civil and criminal tax consultations are confidential and legally privileged. Same day and emergency appointments scheduled Monday through Friday. For immediate assistance call (212) 974-3435 or contact us Online. 

Restaurant Tax Accountant and Tax Attorney We negotiate excellent installment agreements and provide restaurant owners with effective sales tax and audit representation, including unfiled tax returns and all Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

Business Tax Accountant and Tax Attorney We negotiate affordable repayment plans and provide our business clients with effective payroll tax and audit representation, obtaining government contracts with a tax lien, compliance checks, missing tax returns and Workers Compensation audits. For immediate assistance call (212) 974-3435 or contact us Online. 

Four Family Members and a very unhappy Businessmen Sentenced for Tax Fraud


Four family members and a businessmen were sentenced to prison for their participation in  a long-term, complex and concerted effort to avoid taxation. In October 2010, Chester A. Bitterman Jr. and his sons, Craig L. Bitterman, C. Grant Bitterman and Curtis L. Bitterman, were convicted of conspiracy to defraud the United States. Craig Bitterman was additionally convicted of obstruction of justice. Prior to sentencing, the defendants paid $437,000 in restitution to the IRS. The four were sentenced as follows: Chester A. Bitterman Jr. was sentenced to three years’ probation and ordered to pay a $5,000 fine; Craig L. Bitterman was sentenced to 36 months in prison and ordered to pay a $10,000 fine; C. Grant Bitterman was sentenced to 21 months in prison and ordered to pay a $7,500 fine; an Curtis L. Bitterman was sentenced to 21 months in prison and ordered to pay a $7,500 fine. From 1996 to 2005 the Bittermans owned and operated the Bitterman Scale Company. To conceal their income and assets from the IRS, the Bittermans used aliases, offshore bank accounts and a complex series of sham paper transactions to disguise income. The defendants transferred their personal and business assets to sham trusts purchased from the Commonwealth Trust Company, a tax protester organization that marketed trust products to clients for the purpose of avoiding federal income tax payment. The trusts were used to make it appear as though the defendants had little or no assets or income. In reality, the defendants retained complete access and control over their funds.

New York City Tax Accountant and Tax Attorney Our New York City offices are conveniently located and easily accessible by car, train and subway. Civil and criminal tax consultations are confidential and legally privileged. Same day and emergency appointments scheduled Monday through Friday. For immediate assistance call (212) 974-3435 or contact us Online. 

Restaurant Tax Accountant and Tax Attorney We negotiate excellent installment agreements and provide restaurant owners with effective sales tax and audit representation, including unfiled tax returns and all Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

Business Tax Accountant and Tax Attorney We negotiate affordable repayment plans and provide our business clients with effective payroll tax and audit representation, obtaining government contracts with a tax lien, compliance checks, missing tax returns and Workers Compensation audits. For immediate assistance call (212) 974-3435 or contact us Online. 

Thursday, May 23, 2019

Used Car Salesman Sentenced on Tax Charges



James Francis Volin, of Inver Grove Heights, was sentenced to 24 months in prison and ordered to pay $96,599 in restitution. In 2008 Volin agreed to pay nearly $100,000 in outstanding taxes to the IRS. Volin still owed the taxes in 2012 and 2013 when he was operating an unlicensed and illegal used car dealership that generated substantial cash income. Instead of paying the back taxes as agreed, Volin hid the income. Volin did not report the cash income or file tax returns. He put money into cashier’s checks and used bank accounts opened under another person’s name and social security number to avoid detection.

New York City Tax Accountant and Tax Attorney Our New York City offices are conveniently located and easily accessible by car, train and subway. Civil and criminal tax consultations are confidential and legally privileged. Same day and emergency appointments scheduled Monday through Friday. For immediate assistance call (212) 974-3435 or contact us Online. 

Restaurant Tax Accountant and Tax Attorney We negotiate excellent installment agreements and provide restaurant owners with effective sales tax and audit representation, including unfiled tax returns and all Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

Business Tax Accountant and Tax Attorney We negotiate affordable repayment plans and provide our business clients with effective payroll tax and audit representation, obtaining government contracts with a tax lien, compliance checks, missing tax returns and Workers Compensation audits. For immediate assistance call (212) 974-3435 or contact us Online. 

Wednesday, May 22, 2019

Three Residents Sentenced for Tax Fraud and Obstruction of Justice


Gloria Reeder was sentenced to 15 months in prison, three years of supervised release and ordered to pay a $100 special assessment and $310,428 in restitution for unpaid taxes. On Aug. 18, 2015, Joe Ruben Hill, aka Joe Hill, of Cheyenne, was sentenced to 41 months in prison and three years of supervised release. Lucille Kathleen Hill, aka Kathy Hill, of Cheyenne, was sentenced to three years of probation with special conditions, including six months of home confinement. The Hills were each ordered to pay a $100 special assessment and restitution for unpaid taxes. Joe and Kathy Hill last filed federal individual income tax returns in 1994. Reeder had not filed a return since 1985, and none of the defendants had paid any income taxes from those years to the present. Joe and Kathy Hill operated the business Creative Consulting Group (CCG), which sold sham trusts that they falsely claimed would reduce or eliminate an individual’s federal income tax liability. Essentially, the scheme involved fraudulently assigning income to the trust by using a bank account in the trust’s name that was opened with a false federal tax identification number. From 2007 through 2012, Joe and Kathy Hill earned almost $500,000 in income through selling the CCG trusts, while Reeder earned more than $400,000 in income from insurance commissions and a travel business. The unreported income related to the scheme exceeded $2.7 million.

New York City Tax Accountant and Tax Attorney Our New York City offices are conveniently located and easily accessible by car, train and subway. Civil and criminal tax consultations are confidential and legally privileged. Same day and emergency appointments scheduled Monday through Friday. For immediate assistance call (212) 974-3435 or contact us Online. 

Restaurant Tax Accountant and Tax Attorney We negotiate excellent installment agreements and provide restaurant owners with effective sales tax and audit representation, including unfiled tax returns and all Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

Business Tax Accountant and Tax Attorney We negotiate affordable repayment plans and provide our business clients with effective payroll tax and audit representation, obtaining government contracts with a tax lien, compliance checks, missing tax returns and Workers Compensation audits. For immediate assistance call (212) 974-3435 or contact us Online. 

Former Securities Broker Sentenced For Tax Evasion


Steven Staltare, of New Port Richey, was sentenced to 37 months in prison and ordered restitution of $1,689,248 to the IRS. Staltare pleaded guilty to tax evasion on Dec. 16, 2014. Staltare was a securities broker and evaded paying taxes on income that he had earned during tax years 1999 through 2009, instead, he enjoyed a lavish lifestyle and diverted money from his business for gambling and personal expenses.
Former Nebraska Man Sentenced for Failing to File Tax Returns
On Aug. 25, 2015, in Omaha, Nebraska, Chet Lee West, of Nebo, North Carolina, was sentenced to 51 months in prison, three years of supervised release and ordered to pay $439,515 in restitution. From 2007 through 2009, West earned taxable income of approximately $272,224 while living and working in Omaha. From that income West had a tax due and owing of approximately $52,824. West willfully evaded his personal income taxes by failing to file federal individual income tax returns for tax years 2007 through 2009. After being informed by the IRS that he was required to file federal individual income tax returns, West continued to submit information to his employer in an attempt to avoid the withholding of any employment taxes from his pay, including numerous letters and purported affidavits stating his position that he was not subject to taxation on his income. Between 2007 through 2009, West deposited personal income into bank accounts opened in the names of companies he created in an effort to hide and conceal his income from the IRS. West had not filed federal individual income tax returns since at least the 2000 taxable year.
New York City Tax Accountant and Tax Attorney Our New York City offices are conveniently located and easily accessible by car, train and subway. Civil and criminal tax consultations are confidential and legally privileged. Same day and emergency appointments scheduled Monday through Friday. For immediate assistance call (212) 974-3435 or contact us Online. 

Restaurant Tax Accountant and Tax Attorney We negotiate excellent installment agreements and provide restaurant owners with effective sales tax and audit representation, including unfiled tax returns and all Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

Business Tax Accountant and Tax Attorney We negotiate affordable repayment plans and provide our business clients with effective payroll tax and audit representation, obtaining government contracts with a tax lien, compliance checks, missing tax returns and Workers Compensation audits. For immediate assistance call (212) 974-3435 or contact us Online. 

Woman Sentenced for Food Stamp Fraud and Tax Evasion



Sherica Lacey Lee, of McCalla, was sentenced to 24 months in prison and ordered to forfeit $23,757 to the government as proceeds of illegal activity. She also was ordered to pay that same amount in restitution, plus interest, to the Department of Agriculture and to pay $134,448 in restitution, plus interest, to the IRS. Lee is currently serving a sentence for attempting to defraud the Gulf Coast oil spill fund. Lee pleaded guilty in August 2015 to tax evasion and wire fraud. Between July 2009 and June 2013, Lee received food stamp benefits she was not eligible to receive. In addition, Lee evaded income taxes for 2008 by preparing and submitting a personal tax return that falsely reported she had no taxable income, when she had $229,147 in taxable income. Lee also ran a tax preparation business, Lacey's Income Tax Service, with several locations in the Birmingham area. Between 2008 and 2010, Lee's company filed more than 2,000 tax returns and generated about $2.5 million in receipts.
New York City Tax Accountant and Tax Attorney Our New York City offices are conveniently located and easily accessible by car, train and subway. Civil and criminal tax consultations are confidential and legally privileged. Same day and emergency appointments scheduled Monday through Friday. For immediate assistance call (212) 974-3435 or contact us Online. 

Restaurant Tax Accountant and Tax Attorney We negotiate excellent installment agreements and provide restaurant owners with effective sales tax and audit representation, including unfiled tax returns and all Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

Business Tax Accountant and Tax Attorney We negotiate affordable repayment plans and provide our business clients with effective payroll tax and audit representation, obtaining government contracts with a tax lien, compliance checks, missing tax returns and Workers Compensation audits. For immediate assistance call (212) 974-3435 or contact us Online. 

Monday, May 20, 2019

Businessman Sentenced for Income Tax Evasion



On Sept. 21, 2015 in Winston-Salem, North Carolina, Thomas Tilley, a millionaire businessman, was sentenced to 32 months in prison, one year of supervised release and ordered to pay $7,676,757 in restitution to the IRS. Tilley pleaded guilty on Nov. 21, 2014, to corruptly endeavoring to impede and obstruct the administration of the Internal Revenue Code. Starting in 1993 and continuing through at least 2010, Tilley sent the IRS fraudulent financial instruments in an attempt to fraudulently discharge his tax debt; used nominee and sham trusts to purchase and sell real estate to conceal his assets; and placed false liens on properties to impede the IRS’ collection of his tax debt. Tilley also failed to file federal and state income tax returns for tax years 1994 through 2013, despite earning substantial income. Specifically, in 2009, Tilley claimed a net worth as high as $30 million and annual income of $822,000 on a financial statement. Tilley obstructed justice by providing misleading information to probation and the court after pleading guilty and revoked his acceptance of responsibility credit based on this conduct.  




New York City Tax Accountant and Tax Attorney Our New York City offices are conveniently located and easily accessible by car, train and subway. Civil and criminal tax consultations are confidential and legally privileged. Same day and emergency appointments scheduled Monday through Friday. For immediate assistance call (212) 974-3435 or contact us Online. 

Restaurant Tax Accountant and Tax Attorney We negotiate excellent installment agreements and provide restaurant owners with effective sales tax and audit representation, including unfiled tax returns and all Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

Business Tax Accountant and Tax Attorney We negotiate affordable repayment plans and provide our business clients with effective payroll tax and audit representation, obtaining government contracts with a tax lien, compliance checks, missing tax returns and Workers Compensation audits. For immediate assistance call (212) 974-3435 or contact us Online. 

Friday, May 17, 2019

Are FEDERAL INCOME TAXES VIOLATING THE 5th AMENDMENT? (no)


Some individuals and groups say the collection of Federal Income Taxes constitutes a “taking” of property without due process of law, in violation of the Fifth Amendment. Thus, any attempt by the IRS to collect federal income taxes owed by a taxpayer is unconstitutional

"Shenanigans"

The Law: The Fifth Amendment to the United States Constitution provides that a person shall not be “deprived of life, liberty, or property, without due process of law . . . .” The United States Supreme Court stated that “it is . . . well settled that [the Fifth Amendment] is not a limitation upon the taxing power conferred upon Congress by the Constitution; in other words, that the Constitution does not conflict with itself by conferring, upon the one hand, a taxing power, and taking the same power away, on the other, by the limitations of the due process clause.”   Brushaber v. Union Pacific R.R., 240 U.S. 1, 24 (1916).  Further, the Supreme Court has upheld the constitutionality of the summary administrative procedures contained in the Internal Revenue Code against due process challenges on the basis that a post-collection remedy (e.g., a tax refund suit) exists and is sufficient to satisfy the requirements of constitutional due process.  Phillips v. Commissioner, 283 U.S. 589, 595-97 (1931).

The Internal Revenue Code provides methods to ensure due process to taxpayers: (1) the “refund method,” set forth in section 7422(e) and 28 U.S.C. §§ 1341 and 1346(a), in which a taxpayer must pay the full amount of the tax and then sue for a refund in a federal district court or in the United States Court of Federal Claims; and (2) the “deficiency method,” set forth in section 6213(a), in which a taxpayer may, without paying the contested tax, petition the United States Tax Court to redetermine a tax deficiency asserted by the IRS.  Courts have found that both methods provide constitutional due process.

In  Rev. Rul. 2005-19 2005-1 C.B. 819 and in Notice 2010-33, 2010-17 I.R.B. 609, the IRS discussed this frivolous argument in more detail and warned taxpayers of the consequences of attempting to pursue a claim on these grounds.

For a discussion of frivolous tax arguments made in collection due process cases arising under sections 6320 and 6330, see Section II of this outline.

Relevant Case Law:Flora v. United States, 362 U.S. 145, 175 (1960) – the Supreme Court held that a taxpayer must pay the full tax assessment before being able to file a refund suit in district court, noting that a person has the right to appeal an assessment to the Tax Court “without paying a cent.”

Taliaferro v. Freeman, 595 F.App’x 961, 962-63 (11th Cir. 2014) - ordering sanctions against the taxpayer up to and including double the government’s costs, the 11th Circuit held that the taxpayer’s contention that IRS levies violate the Fifth Amendment right to due process was “simply without merit” and did not even warrant discussion.

Schiff v. United States, 919 F.2d 830 (2d Cir. 1990) – the 2nd Circuit rejected a due process claim of a taxpayer who chose not to avail himself of the opportunity to appeal a deficiency notice to the Tax Court.

Obrien v. Green, 114 A.F.T.R.2d (RIA) 2014-5613 (E.D. Va. 2014) – the court rejected as frivolous the taxpayer’s claim that an IRS levy violated the Fifth Amendment.
Other Cases: Lund v. Chase Bank, 114 A.F.T.R.2d (RIA) 2014-5613 (D. Or. 2014); Rivas v. Commissioner, T.C. Memo. 2016-158, 112 T.C.M. (CCH) 247 (2016), appeal dismissed sub nomRivas v. Commissioner, No. 16-16365-C, 2017 WL 4842564 (11th Cir. Aug. 15, 2017).

New York City Tax Accountant and Tax Attorney Our New York City offices are conveniently located and easily accessible by car, train and subway. *Our civil and criminal tax consultations are confidential and legally privileged. Same day and emergency appointments may be scheduled Monday through Friday. For immediate assistance call (212) 974-3435 or contact us Online. 

Restaurant Tax Accountant and Tax Attorney We negotiate excellent installment agreements and provide restaurant owners with effective sales tax and audit representation, including unfiled tax returns and all Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

Business Tax Accountant and Tax Attorney We negotiate affordable repayment plans and provide our business clients with effective payroll tax and audit representation, obtaining government contracts with a tax lien, compliance checks, missing tax returns and Workers Compensation audits. For immediate assistance call (212) 974-3435 or contact us Online. 

Tax Accountant and Attorney Serious tax problems deserve serious attention. We provide the most aggressive tax representation allowed by law. We meet with each and every client personally. We specialize in unpaid income, sales and payroll taxes. We settle contested tax audits; negotiate excellent payment plans, compromise tax debts and resolve all civil and criminal tax issues, including suspended NYS Drivers Licenses, innocent spouse relief and separation of liability. For immediate assistance call (212) 974-3435 or contact us Online. 

Commercial Insurance We assist businesses, nightclubs, schools and religious institutions with their specialty insurance needs, including: Active Shooter and Workplace Violence Insurance Protection; Cyber Insurance, Sexual Harassment and Employment Practices Liability Insurance. For more information call us directly at (212) 974-3435. 

Property Damage We settle property damage claims, including business interruption, burglary, fire, windstorm and water damage. To discuss your insurance claim with a Public Adjuster and Attorney call (212) 974-3435 today. 


Wednesday, May 15, 2019

Business Owner to Pay More than $210,000 in Sales Tax Case


Those who try to dodge their obligation to collect and remit sales tax violate the trust of their customers, deprive communities where they operate of revenue for vital services, and put similar businesses at a competitive disadvantage,” said John Harford, who leads the New York State Tax Department’s Criminal Investigations Division. “We will continue to work with all our law enforcement partners on these cases, and thank the Erie County District Attorney for prosecuting this one.”

New York City Tax Accountant and Tax Attorney Our New York City offices are conveniently located and easily accessible by car, train and subway. *Our civil and criminal tax consultations are confidential and legally privileged. Same day and emergency appointments may be scheduled Monday through Friday. For immediate assistance call (212) 974-3435 or contact us Online. 

Restaurant Tax Accountant and Tax Attorney We negotiate excellent installment agreements and provide restaurant owners with effective sales tax and audit representation, including unfiled tax returns and all Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

Business Tax Accountant and Tax Attorney We negotiate affordable repayment plans and provide our business clients with effective payroll tax and audit representation, obtaining government contracts with a tax lien, compliance checks, missing tax returns and Workers Compensation audits. For immediate assistance call (212) 974-3435 or contact us Online. 

The New York State Department of Taxation and Finance today announced that Rashard Davis, 39, of 1256 Fillmore Ave, Buffalo, paid criminal restitution of $41,393 as part of a plea deal in Erie County Court on April 25, and agreed he owed an additional total tax liability of more than $168,600, including all penalties and interest. Under the agreement, he pleaded guilty to a misdemeanor count of criminal tax fraud. He’s scheduled to be sentenced in Erie County Court on July 8, 2019. Davis faced felony charges stemming from his failure to remit more than $41,393 in sales tax collected in the operation of five businesses, including car dealerships and repair stations, from 2012-2016. He used family members and acquaintances in an attempt to hide his ownership of the businesses. New York State Tax Department Criminal Investigations Division investigators executed search warrants at his businesses and residence on February 16, 2017. 



Tuesday, May 14, 2019

Attorney & IRS Employee Convicted of Tax Evasion (NEED TAX HELP? CALL SELIG & ASSOCIATES)




A federal jury in Las Vegas, Nevada, yesterday convicted Craig P. Orrock, a former attorney and former Internal Revenue Service (IRS) employee, of tax evasion and obstructing the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Nicholas A. Trutanich for the District of Nevada, and Special Agent in Charge Tara Sullivan of IRS-Criminal Investigation.
According to court documents and evidence presented at trial, starting in the early 1990s, Orrock, currently of Sandy, Utah, evaded the payment of his federal income taxes and obstructed IRS efforts to collect those taxes. Orrock filed federal individual income tax returns for the years 1993 through 2015, but failed to pay the income taxes reported as due. He attempted to prevent the IRS from collecting the reported income taxes through the use of nominee entities, bank accounts and trusts to hide his income and assets from IRS collection officers. Orrock attempted to evade the assessment of a large part of the income tax he owed for 2007, by concealing from the IRS both the ownership of real estate he held through a nominee known as Arville Properties LLC as well as the proceeds from the sale of the property. 
From 1993 through 2015, Orrock evaded the payment of over $500,000 in federal income taxes.
Orrock faces up to five years in prison on each of the first two counts and up to three years in prison on the third count, as well as a period of supervised release, restitution and monetary penalties. Sentencing is scheduled for Aug. 26.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Patrick Burns and Tax Division Trial Attorney Erin S. Mellen, who are prosecuting the case.

Tax Evasion Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation) imprisoned not more than 5 years or both, together with the costs of prosecution. 26 U.S. Code Section 7201. For immediate assistance with this or any other tax matter call (212) 974-3435 or contact us Online.  

Suspended NYS Drivers License If your drivers license has been suspended for unpaid taxes, we can help. New York State can suspend your drivers license if you owe $10,000 or more in taxes, penalties and interest. See: New York Tax Law Section 171-v. 

Failure to File Tax Returns  If you haven’t filed a tax return for one or more years, we can help. FYI Under federal law failure to file a tax return is usually treated as a misdemeanor, IRC §7203. However in more egregious cases, willful failure to file a tax return may be elevated to a felony, IRC §7201. Additionally, under New York State Tax Law Section 1801(a)(1) willful failure to file a tax return may now be prosecuted as a felony.  For immediate assistance call us directly at (212) 974-3435. 

Monday, May 13, 2019

Sex Violence & a Whole Lot of Love (Tax Evasion Tax Accountant & Attorney)


The IRS estimates that only a small percentage of tax crime convictions, representing less than one percent of taxpayers, occur in a year. Yet the IRS also estimates that 17 percent of taxpayers fail to comply with the tax code in some way. It is individual taxpayers, rather than corporations, that commit 75 percent of income tax fraud. But are all violations of the tax code fraud?
Below are some definitions and ways in which the IRS attempts to distinguish between income tax fraud and negligence.
What is Income Tax Fraud?
Income tax fraud is the willful attempt to evade tax law or defraud the IRS. Tax fraud occurs when a person or a company does any of the following:
  • Intentionally fails to file a income tax return
  • Willfully fails to pay taxes due
  • Intentionally fails to report all income received
  • Makes fraudulent or false claims
  • Prepares and files a false return
Is it Negligence or Income Tax Fraud?
The IRS understands that the tax code is a complex set of regulations and rules that are difficult for most people to decipher. When careless errors occur, if signs of fraud are absent, the IRS will usually assume that it was an honest mistake rather than the willful evasion of the tax code. In this circumstance, the tax auditor will usually consider it a mistake that is attributable to negligence. Although unintentional, the IRS may still fine the taxpayer a penalty of 20 percent of the underpayment.
The IRS can usually distinguish when an error is the result of negligence or the willful evasion of the tax law. Tax auditors look for common types of suspicious and fraudulent activity, such as:
  • Overstatement of deductions and exemptions
  • Falsification of documents
  • Concealment or transfer of income
  • Keeping two sets of financial ledgers
  • Falsifying personal expenses as business expenses
  • Using a false Social Security number
  • Claiming an exemption for a nonexistent dependent, such as a child
  • Willfully underreporting income
Who Commits Income Tax Fraud?
Service workers paid mostly in cash and self-employed taxpayers running cash-based businesses have been identified as the taxpayers committing most of the tax fraud because it is easy to underreport cash income. Restaurant and clothing storeowners, car dealers, salespeople, doctors, lawyers, accountants, and hairdressers were ranked as the top offenders in a government study of income tax fraud. Service workers, such as restaurant servers, mechanics, and handymen, also commonly underreport cash income.
IRS Criminal Investigation into Income Tax Fraud
The IRS conducts investigations into alleged violations of the tax code through the IRS Criminal Investigation (CI), the law enforcement branch of the agency. CI agents investigate tax crimes, money laundering, and Bank Secrecy Act violations. Investigators use sophisticated methods to uncover computer information protected by encryption, passwords, and other barriers.
Because the tax system relies on "voluntary compliance," or the self-assessment of the taxes owed, the IRS attempts to discourage violations by publicizing convictions, seeking prison time for offenders, and by assessing fines, civil taxes, and penalties.
Penalties for Income Tax Fraud
A taxpayer that willfully attempts to evade paying income taxes is subject to criminal and civil penalties. The type of fraud will determine the applicable penalty. The following are some examples of possible punishments for specific types of tax fraud:
  • Attempt to evade or defeat paying taxes: Upon conviction, the taxpayer is guilty of a felony and is subject to other penalties allowed by law, in addition to (1) imprisonment for no more than 5 years, (2) a fine of not more than $250,000 for individuals or $500,000 for corporations, or (3) both penalties, plus the cost of prosecution (26 USC 7201).
  • Fraud and false statements: Upon conviction, the taxpayer is guilty of a felony and is subject to (1) imprisonment for no more than 3 years, (2) a fine of not more than $250,000 for individuals or $500,000 for corporations, or (3) both penalties, plus the cost of prosecution (26 USC 7206(1)).
  • Willful failure to file a return, supply information, or pay tax at the time or times required by law. This includes the failure to pay estimated tax or a final tax, and the failure to make a return, keep records, or supply information. Upon conviction, the taxpayer is guilty of a misdemeanor and is subject to other penalties allowed by law, in addition to (1) imprisonment for no more than 1 year, (2) a fine of not more than $100,000 for individuals or $200,000 for corporations, or (3) both penalties, plus the cost of prosecution (26 USC 7203).

New York City Tax Accountant and Tax Attorney Our New York City offices are conveniently located and easily accessible by car, train and subway. *Our civil and criminal tax consultations are confidential and legally privileged. Same day and emergency appointments may be scheduled Monday through Friday. For immediate assistance call (212) 974-3435 or contact us Online. 

Restaurant Tax Accountant and Tax Attorney We negotiate excellent installment agreements and provide restaurant owners with effective sales tax and audit representation, including unfiled tax returns and all Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

Business Tax Accountant and Tax Attorney We negotiate affordable repayment plans and provide our business clients with effective payroll tax and audit representation, obtaining government contracts with a tax lien, compliance checks, missing tax returns and Workers Compensation audits. For immediate assistance call (212) 974-3435 or contact us Online. 

Thursday, May 9, 2019

The IRS and National Small Business Week



As part of Small Business Week, the Internal Revenue Service today reminds small business owners and self-employed people that they can avoid a surprise tax bill and possibly a penalty by making estimated tax payments during the year.
This year, National Small Business Week is May 5-11. For more than 50 years, the week has recognized the important contributions of America’s entrepreneurs and small business owners.
By law, everyone must pay tax as they earn income. Estimated tax is the method used to pay tax on income that is not subject to withholding. For small business owners and self-employed people, that usually means making quarterly estimated tax payments as they earn or receive income during the year. They need to pay as they go, so they don’t owe.
Individuals, including sole proprietors, partners and S corporation shareholders, generally must make estimated tax payments if they expect to owe tax of $1,000 or more when they file their 2019 tax return. Often, this includes people involved in the sharing economy. Corporations generally must make these payments if they expect to owe tax of $500 or more on their 2019 tax return.
Estimated tax is used to pay not only income tax but other taxes such as self-employment tax and alternative minimum tax. Estimated tax requirements are different for farmers and fishermen. Publication 505, Tax Withholding and Estimated Tax, has more information about these special estimated tax rules.
How and when to pay estimated taxes
The next quarterly estimated tax payment for 2019 is due June 17. Taxpayers may have to pay estimated tax for 2019 if their tax was more than zero in 2018. See the worksheet in Form 1040-ES, Estimated Tax for Individuals (PDF), or Form 1120-W, Estimated Tax for Corporations (PDF), and Publication 505 for details on how to figure estimated tax payments.
Using the Electronic Federal Tax Payment System (EFTPS) is the easiest way for individuals and businesses to make estimated tax payments. Using EFTPS, they can access a history of their payments, so they know how much and when they were made. Corporations must deposit payments using the EFTPS. For more information, refer to Publication 542, Corporations.
Wage-earners who also have business income can often avoid having to pay estimated tax by asking their employer to withhold more tax from their earnings. The IRS urges anyone in this situation to do a Paycheck Checkup, using the IRS Withholding Calculator. If the calculator suggests a change, they can then submit a new Form W-4 (PDF) to their employer. This form has a special line to enter any additional withholding amount.
Penalty for underpayment of estimated tax
Anyone who pays too little tax through withholding, estimated tax payments or a combination of the two may owe a penalty. In some cases, the penalty may apply if their estimated tax payments are late, even if they’re due a refund.
For tax year 2019, the penalty will generally apply to anyone who pays less than 90 percent of the tax reported on their 2019 income tax return during the year through withholding, estimated tax payments or a combination of the two. People who base their estimated tax payments on last year’s tax will normally avoid a penalty if they pay 100 percent of the amount shown on Line 15 of their 2018 Form 1040 (110 percent if their income was more than $150,000).
Exceptions to the penalty and special rules apply to some groups of taxpayers, such as farmers, fishermen, casualty and disaster victims, those who recently became disabled and recent retirees. In addition, anyone who receives income unevenly during the year can often avoid or lower the penalty by annualizing their income and making unequal payments throughout the year. See Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts (PDF) (or Form 2220, Underpayment of Estimated Tax by Corporations), for more on the penalty. Refer to the Form 1040 Instructions or Form 1120 Instructions (PDF) for where to report the estimated tax penalty.
Here’s a reminder for those who still need to file for tax-year 2018. An expanded estimated tax penalty waiver may be available to those who paid too little tax during 2018. See Form 2210 and its instructions and Form 843, Claim for Refund and Request for Abatement, for details.  
More information:


“Thou Shalt Not Bear False Witness” Part (4)

Medical Madness.  Dr. Gregory B. Shankman (Utica office) billed for giving workers-compensation exams on fully 150 days he was travel...