Specializing in IRS and NYS Tax Representation. Workers Compensation Audits, Payroll, Sales and Income Tax representation for Businesses, Individuals, Restaurants and Construction Companies. Civil and Criminal Workers Comp Audit representation includes: NYSIF Examinations, Premium Disputes, Employee Misclassification, Underreporting, Unreported Income, and Failure to Keep Accurate Payroll Records.
A shifty-eyed character with slicked back hair and a crooked grin was sentenced to 21 months in the slammer; ordered to pay the IRS a whopping $509,455 in restitution, and ordered to file corrected tax returns for tax years 2007 through 2011. And that isn’t all - the would be wise guy who wore designer clothing, enjoyed fine food, and frequented the hottest nightspots, evaded federal income taxes from 2007 through 2011. Falsifying expenses was his game, and as such, the bad news bear prepared and filed his own tax returns, created bogus business expenditures and deducted them from his Schedule C income. The truculent tax evader even had the temerity to provide the IRS with a false lease agreement and phony invoices.
Selig & Associates
We take a practical approach to problem solving and strive to obtain the best possible outcome for our clients
We successfully solve IRS and New York State Tax problems, including suspended Drivers Licenses and Passports. Specializing in large dollar Payroll, Sales and Income Tax Representation for Individuals, Professional Practices and Businesses.
We negotiate excellent Payment Plans, Audits, Offers in Compromise, Payroll & Trust Fund Recovery Penalties, and most other tax issues. Do you have Unfiled Tax Returns? We can have them prepared and filed for you within 48 hours, guaranteed. Same day and emergency appointments are available Monday through Friday in our New York City office. `
To schedule a Free and Legally Privileged Consultation with a Federal Tax Practitioner and Attorney contact us Online
The President of a successful transportation company was recently sentenced to 70 months in prison, three years of supervised release, and ordered to pay $269,978 in restitution. The Crestfallen Corporate Commando tried to conceal his crimes by not filing tax returns and by depositing money into different bank accounts and other tax related shenanigans.
We successfully solve IRS and New York State Tax problems, including suspended Drivers Licenses and Passports. Specializing in large dollar Payroll, Sales and Income Tax Representation for Individuals, Professional Practices and Businesses.
We negotiate excellent Payment Plans, Audits, Offers in Compromise, Payroll & Trust Fund Recovery Penalties, and most other tax issues. Do you have Unfiled Tax Returns? We can have them prepared and filed for you within 48 hours, guaranteed. Same day and emergency appointments are available Monday through Friday in our New York City office.
To schedule a Free and Legally Privileged Consultation with a Federal Tax Practitioner and Attorney contact us Online
The owner of a chiropractic business pleaded guilty to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. According to an indictment filed in June 2018, Richard Rogers, a Northborough, Massachusetts, chiropractor, operated his practice from his residence. Rogers was charged with evading his taxes from 2012 through 2016 by concealing his income from the Internal Revenue Service (IRS) through a variety of methods. Rogers encouraged his clients to pay in cash, used a nominee bank account to negotiate check payments when he was not paid in cash, paid creditors using postal money orders, and used credit card accounts opened with a fictitious social security number. Rogers also concealed the ownership of his residence by titling the property in the name of a trust. Rogers did not file federal tax returns from at least 2008 through 2016, despite his obligation to do so.
United States District Judge Timothy S. Hillman scheduled sentencing for Sept. 10, 2019. Rogers faces a maximum sentence of five years in prison, three years of supervised release, and monetary penalties. Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief John N. Kane and Trial Attorney Carl F. Brooker of the Tax Division, who are prosecuting the case.
Selig & AssociatesWe are a boutique Tax Representation and Insurance Advocacy Firm in New York City. Our offices are conveniently located and easily accessible by subway, car or train. Same day and emergency appointments are available Monday through Friday between the hours of 9:00 a.m. and 5:00 p.m. To schedule a legally privileged consultation with a Federal Tax Practitioner, CPCU, Claims Adjuster and Attorney call (212) 974-3435 or contact us online. Your initial consultation is absolutely Free.
Tax RepresentationOur Tax Advocates are experienced, effective and results driven. Representing individuals and businesses before the IRS and State. We successfully resolve most Civil and Criminal tax problems including suspended Passports and Drivers Licenses. We specialize in unpaid income, sales and payroll taxes and provide practical solutions to difficult tax problems. For example, we negotiate affordable payment plans, and if you have missing or unfiled tax returns, we can have them prepared and filed for you within 48 hours, guaranteed. For immediate assistance call (212) 974-3435 now.
Insurance ClaimsIs your Insurance Company treating you unfairly? Have they offered you substantially less than your claim is worth? If the answer is yes, then call us directly. We successfully settle most first-party insurance claims without ever having to go to court. Commercial and residential insurance representation includes: Environmental Damage, Fire, Business Interruption, Burglary, Vandalism, Windstorm and Water Damage. To consult with a CPCU, Claims Adjuster and Attorney call (212) 974-3435 or contact us online.
About Selig & AssociatesOur primary skillset is the ability to determine and achieve the desired outcome through transactional negotiations. We take a practical approach to problem solving and continuously evaluate the likelihood of success, the potential consequences and the costs associated with taking, or failing to take a particular action. For additional information about our services call (212) 974-3435.
A Long Island business person in the construction industry pleaded guilty today to 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. Edward Hansen of Northport, New York, pleaded guilty to one count of willfully failing to collect, truthfully account for, and pay over payroll taxes to the IRS. According to documents filed with the court, Hansen owned and operated steel erection businesses in Suffolk County. From 2008 to 2011, the IRS assessed more than $480,000 in penalties against Hansen for his failure to pay over employment taxes on behalf of several of these businesses. After the last IRS assessment in May 2011, Hansen changed the name of his business to BR-Teck Enterprises Inc., and nominally transferred ownership to another individual. Hansen, however, continued to operate the business and continued to fail to pay over employment taxes. From January 2012 through June 2017, Hansen failed to pay over more than $950,000 in payroll taxes withheld from the wages of BR-Teck’s employees. Hansen faces a maximum sentence of five years in prison for failing to pay over payroll taxes. He also faces a period of supervised release, restitution and monetary penalties. Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys, Abigail Burger Chingos and Jeffrey Bender, who are prosecuting the case.
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 AttorneyOur 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 AttorneyWe 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 AttorneyWe 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.
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.
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.
We here at the Marcowitz Law Firm are honored to represent America’s Heroes. We never lose sight of the tremendous sacrifice and effort our clients have made for our City and Country. Eddie has participated in many pro bono Campaigns over the years. After 9/11, Eddie was honored to be a part of “Trial Lawyers Care” which was created by The American Trial Lawyers Association to provide pro bono legal services to victims of the attacks. Furthermore, Eddie spearheaded one of the single largest pro bono efforts in history and helped recover over $280 Million Dollars for WTC Victims. In 2007, his pro bono success continued with his unprecedented victory against the FDNY Pension Board was chronicled in the New York Law Journal, The New York Daily News and The Chief-Leader. Today, the Firm continues to provide pro bono pension counseling to members of the FDNY. In fact, this past year he assisted in the reclassification of a WTC Cancer claim which had been denied and considered a losing battle by others in the field. Eddie would rather go down bloodied and battered than not fight at all.
Additionally, Eddie and his Firm proudly sponsors several great charities and events each year which are important to us and our clients. These include St. Jude’s Children’s Hospital, Wounded Warriors, The Ray Pfeifer Annual Golf Outing, The NJFMBA Annual Cooked & Uncorked Event, The Marc Virag Foundation Annual Fishing Trip and the Millburn Fire Department Golf Classic to Benefit the Children of the Arthur C. Luf Children’s Burn Camp.
9/11 VICTIM COMPENSATION FUND REAUTHORIZATION UPDATE
As we all know, the Special Master was forced to make drastic cuts to benefits this past February. Immediately thereafter, the Bi-Partisan Bill to Reauthorize the Victims Compensation Fund was introduced into both chambers of Congress.
As of today, there are 237 Co-Sponsors of the Bill in the House and 33 in the Senate. The lobbyists are hopeful that they will have the bill out of the House with 300 Co-Sponsors by the end of June, get it passed in the Senate by Summer and possibly signed into law by October. BUT IS NOT GOING TO BE EASY. They need your help in keeping the pressure on those in Congress who have not yet come on board. If you have any family members who live out of the Tri State Area, please have them contact their representatives and demand that they support the “Never Forget the Heroes: Permanent Authorization of the September 11th Victim Compensation Fund Act (S 546 / HR 1327) . Forward this link to out of state family and friends. http://www.renew911health.org/take-action/take-action-contact-your-members-of-congress/
THE NYS CHILD VICTIM ACT IS NOT JUST FOR VICTIMS OF CLERGY ABUSE
THE BOY SCOUTS, ROCKEFELLER UNIVERSITY, POLY PREP, YESHIVA AND ALL OTHER PUBLIC AND PRIVATE INSTITUTIONS ARE ALSO SUBJECT TO CLAIMS
This law allows victims who were sexually abused when they were children to seek civil damages against their abusers until the age of 55. FURTHERMORE, AND MORE IMPORTANTLY, the new law has opened a WINDOW for anyone to bring a claim within a limited time frame even though they have passed the age of 55. That window will be between AUGUST 14, 2019 through AUGUST 14, 2020. SIMPLY PUT, IF YOU WERE THE VICTIM OF A SEXUAL ASSAULT IN NEW YORK, REGARDLESS OF HOW MUCH TIME HAS SINCE PASSED (OR DUE TO ANY INVOLVEMENT OR RELATION WITH A PRIVATE OR PUBLIC NEW YORK INSTITUTION) YOU NOW HAVE THE RIGHT TO FILE A CLAIM.If you are a survivor or sexual assault and would like a free consultation, please contact us today. All calls and claims are handled with the utmost confidentiality and discretion. The identities of victims will not be made matter of public record and are subject to Attorney-Client Privilege.
HAVE A GREAT SPRING AND AS ALWAYS IF YOU HAVE ANY QUESTIONS ABOUT THESE ISSUES, OR ANY OTHER LEGAL ISSUES, FEEL FREE TO CALL US ANYTIME!
New York City Tax Accountant and Tax Attorney Consult with an experienced Tax Accountant and Tax Attorney today.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 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 confidential 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.
Commercial Insurance Consultant and Attorney 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 Insurance Claims We settle large property insurance claims, including business interruption, burglary, fire, windstorm and water damage for top dollar. To discuss your insurance claim with a Public Adjuster and Attorney call (212) 974-3435.
Risk Management Servicesincluding: Risk Analysis, Contract Review, Loss Prevention Recommendations, Non-Insurance Alternatives, Claims and Coverage Dispute Analysis. For immediate assistance call (212) 974-3435.
A health care products business owner, who attempted to evade the payment of more than $450,000 in income taxes, was sentenced in federal court by U.S. District Court Judge Raymond Moore to 36 months in prison, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, in April 2010, Craig Walcott was notified by the Internal Revenue Service (IRS) that he owed taxes and penalties for the years 2005, 2006 and 2007, totaling $458,569. After receiving this notice, Walcott took a series of steps to prevent the IRS from collecting those taxes. He recorded fictitious deeds of trust against four properties he owned, so that they would be unattractive targets for IRS tax liens, and transferred other properties he owned to nominee entities to make it appear to the IRS that he no longer had an ownership interest in the properties. Walcott also filed false tax returns for the tax years 2005- 2007 that underreported his income for those years.
Walcott pleaded guilty on Nov. 27, 2018, to one count of attempting to evade the payment of his federal income taxes.
In addition to prison, Walcott was ordered to pay restitution to the IRS in the amount of $628,733 and to serve three years of supervised release after the completion of his sentence. Walcott was remanded into custody today.
The case was investigated by special agents of the IRS-Criminal Investigation. Tax Division Assistant Chief Andrew Kameros and Trial Attorney Lee Langston prosecuted the case.
Free Consultation We Solve Tax, Business and Insurance Problems. To speak with an experienced Federal Tax Practitioner and Attorney call (212) 974-3435 or contact us online. Don't delay another day. Meet with us personally in our conveniently located New York City office.
RestaurantsWe specialize in unpaid sales taxes, installment agreements, audit representation and all Department of Labor issues. For immediate assistance call (212) 974-3435 or contact us online.
ContractorsWe specialize in payroll and withholding taxes, installment agreements, audit representation and Workers Compensation insurance audits. To schedule a free consultation call (212) 974-3435 or contact us online.
A Brooklyn, New York, resident pleaded guilty on Friday to 42 counts of an indictment charging him with 18 counts of wire fraud, 22 counts of aggravated identity theft, one count of conspiring to commit aggravated identity theft, and one count of aiding and assisting the filing of a false tax return, 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, Bamgbala, the owner of Kaybamz Inc., a tax preparation business located in Brooklyn, New York, used stolen Social Security Numbers to file false tax returns with the Internal Revenue Service (IRS) to obtain fraudulent refunds. The superseding indictment also alleges that Bamgbala and others conspired to deposit the unlawfully obtained tax refund checks into a specified bank account to obtain the cash value of those checks, and created fraudulent IRS forms and New York State identification documents to facilitate the scheme.
Bamgbala faces a mandatory minimum sentence of two years in prison for each count of aggravated identity theft, a maximum sentence of 20 years in prison for each count of wire fraud, a maximum sentence of five years in prison for each conspiracy count, and a maximum sentence of three years in prison for the aiding and assisting in the filing of a false tax return count. He also faces a period of supervised release, restitution, forfeiture and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney 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.
Are You in Trouble with the IRS or State?To schedule a free, legally privileged consultation with a Federal Tax Practitioner and Attorney in our conveniently located New York City office call (212) 974-3435 or contact us online. *Same day and emergency appointments are available Monday through Friday.
✔ Unpaid income, sales and payroll taxes.
✔We negotiate excellent re-payment plans with the IRS and State.
✔Missing tax returns prepared and filed within 48 hours, guaranteed.
The United States filed a complaint seeking an order stopping Nancy Zak, Claud Clark III, EcoVest Capital Inc., Alan N. Solon, Robert M. McCullough, and Ralph R. Teal, Jr., from organizing, promoting, or selling an allegedly abusive conservation easement syndication tax scheme, the Justice Department announced today.
According to the complaint filed in the U.S. District Court for the Northern District of Georgia, the defendants’ scheme revolves around donations of conservation easements and corresponding tax benefits from those donations. Defendants also allegedly rely on grossly overvalued appraisals as part of their scheme.
“The Department of Justice is working with our partners in the Internal Revenue Service to shut down fraudulent conservation easement shelters, which in this case were based on willfully false valuations,” said Richard E. Zuckerman, the Tax Division’s Principal Deputy Assistant Attorney General. “Individuals investing in these schemes with benefits that seem too good to be true should ensure they are paying their proper federal income tax liability.”
“When it comes to aggressive transactions marketed by unscrupulous advisors, we will take every enforcement option available, including civil and criminal penalties,” said Internal Revenue Service Commissioner Charles P. Rettig. “Cheating on your taxes will not be tolerated.”
Under the proper circumstances, the Internal Revenue Code allows a taxpayer to take a charitable donation deduction equivalent to the fair market value of a conservation easement, but only if certain requirements with respect to the donation of an interest in property for conservation purposes are satisfied. This deduction is referred to as the “qualified conservation contribution.”
The defendants allegedly organize, promote, and sell ownership interests in limited liability entities, referred to in the complaint as “conservation easement syndicates.” According to the complaint, at the time defendants organize, promote, and sell ownership interests in a conservation easement syndicate, the syndicate plans to donate a conservation easement on land it owns, and then claim a corresponding tax deduction for the “qualified conservation contribution.”
However, these syndicates lack economic substance and are shams. They only serve as a conduit to transfer overvalued and otherwise improper federal tax deductions to customers, according to the government’s complaint. Additionally, the complaint alleges the conservation easements promoted by the defendants do not meet the requirements for a “qualified conservation contribution” under the Internal Revenue Code.
According to the complaint, defendants knew, or had reason to know, that the statements they made to customers regarding the tax benefits were false or fraudulent. In this regard, the complaint alleges that defendants knew the syndicates that they promoted planned to donate a conservation easement but otherwise did not plan to engage in any ongoing business activity. The complaint also alleges that the only return on investment a customer could anticipate from “investing” in a syndicate was the tax benefit from the planned conservation easement donation, which was many times larger than the purported investment. The complaint further alleges that the defendants made or furnished gross valuation overstatements about the valuation of conservation easements and the corresponding tax deductions, or caused others to do so.
The suit alleges that defendants have organized, promoted, and sold at least 96 conservation easement syndicates resulting in the syndicates reporting over $2.0 billion of tax deductions from overvalued and improper “qualified conservation contributions,” and have passed those tax deductions through to the thousands of customers of defendants’ scheme, resulting in hundreds of millions of dollars of tax harm.
On December 23, 2016, the IRS issued Notice 2017-10, announcing that certain syndicated conservation easement transactions are listed transactions if entered into on or after January 1, 2010. Notice 2017-10 applies to those prospective investors who receive oral or written promotional materials offering the possibility of a charitable donation deduction of at least 2.5 times their investment. A typical transaction covered by Notice 2017-10 involves the advertised investment in a pass-through entity that owns real property or acquires real property for the purpose of encumbering the property with a conservation easement.
Selig & Associates: Specializing in Unpaid Income, Sales and Payroll Taxes Discuss your tax and business problems with a Federal Tax Practitioner and Attorney in our conveniently located New York City office. For a free consultation call (212) 974 3435 or contact us online.
ount On Us. Guaranteed.
✔ Same day and emergency appointments available.
✔We negotiate excellent repayment plans with the IRS and State.
✔ Missing tax returns prepared and filed within 48 hours, guaranteed.
✔ Civil and criminal tax representation.
✔We negotiate great settlements, debts, judgments and insurance claims.
TRENTON, N.J. – A federal grand jury today indicted a partner at an Ocean County law firm for evasion of taxes totaling more than $1 million; filing false income tax returns; failing to pay over payroll taxes to the IRS; and making false statements on a bank loan application, First Assistant U.S. Attorney Rachael A. Honig announced.
George Gilmore, 69, of Toms River, New Jersey, was charged in a six-count indictment with one count of income tax evasion for calendar years 2013, 2014, and 2015; two counts of filing false tax returns for calendar years 2013 and 2014; failing to collect, account for, and pay over payroll taxes for two quarters in 2016, and making false statements on a 2015 loan application submitted to Ocean First Bank N.A.
According to documents filed in this case:
Gilmore worked as an equity partner and shareholder at Gilmore & Monahan P.A., a law firm in Toms River, where he exercised primary control over the firm’s financial affairs. Gilmore filed on behalf of himself and his spouse federal income tax returns declaring that he owed $493,526 for calendar year 2013, $321,470 for 2014, and $311,287 for 2015. Despite admitting that he owed taxes for each of these years, Gilmore made no estimated tax payments and failed to pay the federal individual income taxes that he owed. Rather, between January 2014 and December 2016, Gilmore spent more than $2.5 million on personal expenses, including substantial home remodeling costs, vacations, and the acquisition of antiques, artwork, and collectibles. By Dec. 31, 2016, based on the tax due and owing that Gilmore reported on the returns, he owed the IRS $1,520,329 in taxes, penalties, and interest.
To evade and defeat the payment of his taxes Gilmore concealed information from the IRS and falsely classified income, made false and misleading statements to IRS personnel, and filed false tax returns that materially understated the true amount of income that he received from the law firm:
·From January 2014 to December 2016, Gilmore used the law firm’s bank accounts to pay more than $2 million worth of personal expenses, including obtaining checks to cash and cash advances on a corporate credit card. Gilmore falsely classified payments as “shareholder loans” instead of income to him.
·On Oct. 16, 2014, Gilmore sent the IRS a $493,526 check as payment for his 2013 taxes despite having no more than $2,500 in his personal bank account at the time. Gilmore’s check bounced and he never resubmitted payment in lieu of the bounced check. From November 2014, when he was notified by the IRS concerning the bounced check, to the end of December 2014, Gilmore spent more than $80,000 toward the construction of his home and to purchase artwork, antiques, and collectibles and more than $25,000 in mortgages and related expenses for five real estate properties that he owed.
·From November 2014 to October 2015, Gilmore falsely represented to the IRS collections officer that he would make partial payments to the IRS for his outstanding tax liability, but made none.
·Gilmore filed false tax returns for 2013 and 2014, which under reported his actual income from the law firm.
Because he exercised significant control over the law firm’s financial affairs, Gilmore was a person responsible for withholding payroll taxes from the gross salary and wages of the law firm’s employees to cover individual income, Social Security and Medicare tax obligations. For the tax quarters ending March 31, 2016, and June 30, 2016, the law firm withheld tax payments from its employees’ checks, but Gilmore failed to pay over in full the payroll taxes due to the IRS.
Gilmore also submitted a loan application to Ocean First Bank containing false statements. On Nov. 21, 2014, Gilmore reviewed, signed, and submitted to Ocean First Bank a Uniform Residential Loan Application (URLA) to obtain refinancing of a mortgage loan for $1.5 million with a “cash out” provision that provided Gilmore would obtain cash from the loan. On Jan. 22, 2015, Gilmore submitted another URLA updating the initial application. Gilmore failed to disclose his outstanding 2013 tax liabilities and personal loans that he had obtained from others on the URLAs. Gilmore received $572,000 from the cash out portion of the loan, the proceeds of which he did not apply to his unpaid taxes.
The tax evasion count and the two counts of failing to collect, account for, and pay over payroll taxes each carry a maximum penalty of five years in prison, and a $250,000 fine, or twice the gross gain or loss from the offense. The two counts of filing a false tax return each carry a maximum penalty of three years in prison, and a $250,000 fine, or twice the gross gain or loss from the offense. The count alleging loan application fraud carries a maximum penalty of 30 years in prison and a $1 million fine. Gilmore will be arraigned at a date to be determined.
First Assistant U.S. Attorney Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, special agents with U.S. Attorney’s Office under the direction of Supervisory Special Agent Thomas Mahoney, and special agents of the FBI Red Bank Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, for the investigation leading to today’s indictment.
The government is represented by Deputy U.S. Attorney Matthew J. Skahill; Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division; and Trial Attorney Thomas F. Koelbl of the U.S. Department of Justice - Tax Division.
The charges and allegations in the indictment are merely accusations, and Gilmore is considered innocent unless and until proven guilty.
Specializing in Unpaid Income, Sales and Payroll TaxesDiscuss your tax and business problems with a Federal Tax Practitioner and Attorney in our conveniently located New York City office. For a free consultation call (212) 974 3435 or contact us online.
Can Count On Us. Guaranteed.
✔ Same day and emergency appointments available.
✔We negotiate excellent repayment plans with the IRS and State.
✔ Missing tax returns prepared and filed within 48 hours, guaranteed.
✔ Civil and criminal tax representation.
✔We negotiate great settlements, debts, judgments and insurance claims.
Merchant ServicesWenegotiate settlement agreements, compromise debts, and can provide your business with secured financing. For a free consultation call (212) 974-3435 or contact us online.
