Brooklyn Tax Preparer Pleads Guilty to Criminal Tax Fraud For Stealing Sales Tax Payments From Clients

 

The New York State Department of Taxation and Finance, along with the Brooklyn District Attorney’s Office, announced that Yehad Abdelaziz and his corporation The Five Pillars Financial Services, LTD, pleaded guilty to criminal tax fraud. A Tax Department investigation determined that between March 2015 and August 2017 Abdelaziz received money from business owners and filed sales tax returns on their behalf. However, he underreported sales or reported zero gross sales and instead pocketed the sales tax payments his clients entrusted him to remit on their behalf. “We will continue to aggressively pursue unscrupulous tax preparers who betray the trust of clients and deprive communities and the state of revenue needed for vital services,” said New York State Commissioner of Taxation and Finance Michael Schmidt. Brooklyn District Attorney Eric Gonzalez said, “Tax preparers who cheat don’t only shortchange their clients, but effectively steal from all of us. They must be held accountable and pay restitution to victims. My Office will continue to work with our partners to prosecute tax fraud and other forms of larceny schemes.” Abdelaziz and The Five Pillars Financial Services, LTD, paid more than $191,000 in restitution. The payment includes the forfeiture of more than $6,700 that was seized as part of a search warrant executed by the Tax Department. Both Abdelaziz and his corporation are also prohibited from providing tax preparation services of any kind for one year.

Specializing in COVID-19 Related Tax Problems Free consultation (in person or telephonic) with Federal Tax Practitioner, CPCU and Attorney. Our offices are conveniently located in New York City and emergency appointments are always available. Practice limited to Tax Representation and Insurance Audits.

 

 

Effective Tax  Advocates We successfully solve COVID-19 and Coronavirus related tax problems, including unpaid income, sales and payroll taxes. Negotiating affordable payment plans and tax settlements since 2006. Practicing before Internal Revenue Service (IRS) and the New York State Department of Taxation and Finance. Call us today at  (212) 974-3435 or contact us Online. 

 

Difficult Insurance Audits Effectively challenging Workers' Compensation & NYSIF premium increases, payroll discrepancies, employee misclassification, experience and other rating issues. Additionally if your Business pays over $75,000 for W/C Insurance, you may be entitled to a large refund of premium. For more information, call us directly or contact us Online. 

New York City Restaurateur Sentenced to Jail For Tax Evasion Scheme

 Torn from the Pages of the Department of Justice

A New York City restaurateur was sentenced to prison for a tax evasion scheme. Adel Kellel, 63, of New Hyde Park, New York, the owner of Raffles Bistro, formerly a restaurant located in New York City, was sentenced to 24 months in prison for tax evasion by U.S. District Court Judge Paul G. Gardephe. “All taxpayers have an obligation to honestly report their income and pay their share of taxes,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “For those who attempt to avoid these obligations and cheat the IRS, as this sentence shows, there are serious consequences.” “Adel Kellel cooked his books to conceal income from the IRS and his own accountants,” said Acting U.S. Attorney Audrey Strauss for the Southern District of New York. “He spent the ill-gotten gains on personal luxuries like a Mercedes, a Porsche, and a Maserati. Now he will spend two years in federal prison.” “The accurate reporting of income is an important responsibility of all business professionals,” said IRS-Criminal Investigation Special Agent in Charge Jonathan D. Larsen. “In this case, Adel Kellel attempted to evade his taxes by diverting funds for personal use and failing to report substantial gross receipts. IRS-Criminal Investigation will continue to serve the American taxpayer by investigating individuals who hide their true income from the IRS.” According to the allegations contained in the information to which Kellel pled guilty, documents filed in court, and statements made in court: In 2011, Kellel was the President and a 45 percent owner of K&H Restaurant Inc. (K&H), which operated Raffles Bistro (Raffles), a coffee-shop and full service restaurant then located in a Manhattan hotel (the Hotel). From 2012 through 2015, Kellel was the 100 percent owner of K&H. From 2011 to 2015, Kellel filed false personal returns and corporate returns for K&H, and evaded his taxes by diverting and failing to report substantial gross receipts to the IRS For example, as part of his tax evasion scheme, Kellel diverted over 150 hotel checks, totaling over $2.1 million or approximately 43 percent of the Hotel payments K&H received by check, and then hid the gross receipts from his accountants and the IRS by depositing the checks into more than a dozen undisclosed bank accounts. These included personal accounts that Kellel held either individually or jointly with his wife, as well as accounts held in the name of K&H, some of which were opened solely to have an additional place to deposit diverted checks. Kellel also diverted substantial cash income received from Raffles’ customers, a portion of which he deposited into personal bank accounts or spent directly on personal expenses, again, without disclosing to his accountants or paying taxes. Kellel used the diverted income for personal expenses, including overseas transfers; condominium fees; rent for a high-end Manhattan apartment; college tuition payments for his children; luxury retailers, such as Hugo Boss and Saks Fifth Avenue; Mercedes, Porsche, and Maserati vehicles; and domestic and international travel. On Jan. 24, 2020, Kellel pled guilty to one count of tax evasion relating to the 2011 to 2015 tax years. In total, Kellel caused a combined tax loss of at least approximately $771,195 to the IRS and the New York State Department of Taxation and Finance (NYSDTF). In addition to the sentence of imprisonment, the court ordered Kellel to pay restitution of $613,478 to the IRS and $157,717 to NYSDTF. Kellel was also ordered to serve three years of supervised release after completing his jail sentence. Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Strauss praised the efforts of IRS-CI in the investigation. Trial Attorney Jorge Almonte of the Tax Division and Assistant U.S. Attorney Olga I. Zverovich are in charge of the prosecution.

Don’t Let This Happen To You

Selig & Associates Free consultation (in person or telephonic) with Federal Tax Practitioner, CPCU and Attorney. Our offices are conveniently located in New York City and emergency appointments are always available. Practice limited to Tax Representation and Insurance Premium Audits.

Effective Tax Advocacy Negotiating affordable repayment plans and realistic tax settlements since 2006. Practicing before Internal Revenue Service and the New York State Department of Taxation and Finance. We effectively resolve unpaid income, sales and payroll tax problems. Call us today at (212) 974-3435 or contact us Online.

 

Insurance Audits and Premium Increases  We successfully challenge Workers' Compensation premium increases, payroll discrepancies, employee misclassification, experience and other rating issues. Additionally if your Business pays over $50,000 for W/C Insurance, you may be entitled to a large premium refund. For more information, call us directly or contact us Online. 

 

(212) 974-3435

Medical Doctor Sent to Slammer [because] He Failed to Pay Employment Taxes

 

 

A dejected Medical Doctor was just sentenced in the United States District Court to serve six months in prison after pleading guilty to Failure to Pay Employment Taxes. The despondent Doctor was also ordered to serve three years of supervised release, pay a $10,000 fine, and a $100 special assessment to the Crime Victims' Fund. And if that wasn’t enough, he was also ordered to pay $721,394.34 in restitution (which he has already paid in full).

If you’ve fallen behind with your payroll withholding responsibilities, you’re in trouble. To schedule a FREE legally privileged consultation, call (212) 974-3435 today. 

Effective Tax Advocacy Negotiating affordable repayment plans and realistic tax settlements since 2006. Practicing before Internal Revenue Service and the New York State Department of Taxation and Finance. We effectively resolve unpaid income, sales and payroll tax problems. Don't Delay, Call Today. 

Despondent Chiropractor and his Disgruntled Wife Plead Guilty to Tax Evasion (they should have hired SELIG)

 

On 20 November 2020 a despondent chiropractor and his disgruntled wife pleaded guilty to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division and U.S. Attorney Kurt G. Alme. According to court documents and statements made in court, the chiropractor understated his taxable income by $284,691 for tax years 2013, 2014, 2015, 2017, and 2018. In total, the defendants caused a tax loss to the IRS of $74,486.

New York City Tax Advocate  Specializing in unpaid Income, Sales and Payroll Taxes. We represent Individuals and Businesses before the Internal Revenue Service (IRS) and New York State Department of Taxation and Finance. Federal Tax Practitioner, CPCU and Attorney. *Negotiating excellent Tax Settlements and reasonable Payment Plans since 2006. 

Selig & Associates  Free consultation (either in person or telephonic). Our offices are conveniently located in New York City and emergency appointments are always available.

 

 

Did Your Business Overpay for Workers’ Compensation Insurance?  If your Business paid $50,000 + for Workers’ Compensation insurance in 2017, 2018, 2019 or 2020, you may be entitled to a large cash refund. Premium refunds are usually received in as little as 90 days. *If we don’t win, you don’t pay. 

 

Insurance Audits and Premium Disputes  Workers' Comp and NYSIF audit representation. We aggressively challenge premium increases, payroll discrepancies, employee misclassification, experience and other rating issues. *Premium disputes are usually settled within 60 days of our being retained. 

 

Operators of Charity Scam Sentenced to Prison for Mail Fraud Conspiracy and Tax Evasion – But Don’t Let That Stop You from Getting the 501(c)(3) Designation Your Non-Profit Desperately Needs

A crafty couple that operated a charity that purported to provide goods to the needy was sentenced to prison for conspiracy to commit mail fraud and tax evasion. The bewildered lovebirds were sentenced to 15 months in the Slammer, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert S. Brewer, Jr. for the Southern District.According to court documents and statements made in court, they operated a tax-exempt charitable organization whose stated mission was to provide assistance to low income families and individuals in need. From 2011 through 2016, they fraudulently obtained more than $1.35 million in donated clothing and other items by falsely representing to the donors that the items would be given to needy recipients. In fact, they only gave about $13,000 in charitable donations, and then sold the remaining donated items, and used the proceeds to support themselves and their family members. 

Selig & Associates specializes in Tax Representation and Workers Compensation Insurance Audits. Our office is conveniently located in New York City and same day and emergency appointments are available Monday through Friday. Call Selig today for a free no obligation consultation. 

 

IRS & NYS Tax Representation We represent individuals and businesses before the Internal Revenue Service and New York State Department of Taxation and Finance. We negotiate excellent tax settlements and repayment agreements and specialize in unpaid Income, Sales and Payroll taxes. 

 

Workers’ Compensation & NYSIF Audits We help businesses with difficult insurance audits and successfully challenge large premium increases, payroll discrepancies, employee misclassification, experience and other rating issues. *Most premium disputes are settled within 60 days of our being retained.

 

Did Your Business Overpay for Workers’ Compensation Insurance? If your Business paid $100,000 + for Workers’ Compensation insurance (during 2017, 2018, 2019 or 2020) you may be entitled to a Large Cash Refund. *Premium refunds are usually received in as little as 90 days. Call Selig for a free no obligation consultation. If we don’t win, you don’t pay. 

 

On October 8th 2020 A Federal Grand Jury Indicted NY Donut Shop Operators For Tax Evasion (Better call SELIG & Associates)

 

A Husband, Wife and Son “Allegedly” Concealed More Than $1 Million in Cash Sales and Paid Employees “Off the Books” A federal grand jury in New York, returned an indictment charging the operators of three donut shops with conspiracy to defraud the IRS, tax evasion, and aiding and assisting in the filing of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting U.S. Attorney Antoinette T. Bacon for the Northern District of New York.According to the indictment, The Owner, his wife, and their son, all of Rome, New York, operated three Dippin Donuts stores with locations in Rome and New Hartford. From 2013 to 2017, the defendants allegedly concealed more than $1 million in cash sales from the IRS by depositing cash directly into their personal bank accounts instead of business bank accounts, providing incomplete information to their accountant, and causing their accountant to file false individual and corporate tax returns with the IRS. The indictment further alleges that the defendants committed employment tax fraud by paying employees some wages “off the books” in cash.If convicted, the defendants face a maximum sentence of five years in prison for the conspiracy charge and each count of tax evasion, and three years in prison for each false return charge. The defendants also face a period of supervised release, restitution, and monetary penalties.An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.

 

New York City Tax Advocates

 

If your business was adversely affected by COVID-19

you need to take immediate action

 

Selig & Associates zealously represents individuals and businesses before the Internal Revenue Service ("IRS") and New York State Department of Taxation and Finance. *We specialize in Sales Tax Audits, unpaid Income Taxes; unpaid Sales Taxes [and] Payroll Tax Problems. Negotiating reasonable tax settlements and affordable repayment plans for small business owners since 2006. Consultations are available in person or by telephone and emergency appointments are always available. Unfiled Tax Returns? We can prepare and file up to 10 years of missing Federal and State Tax Returns (within 48 hours of being retained). To speak with a Federal Tax Practitioner, CPCU and Attorney call (212) 974-3435 or contact us Online. 

 

 

 

Owner of Medical Laboratory Sentenced to Prison for Filing False Tax Returns (He should have hired SELIG & Associates)

On September 29, 2020 an unhappy business owner was sentenced to 40 months (3 years, 4 months) in prison a/k/a (the "SLAMMER") for filing false tax returns, announced Acting United States Attorney Alexander C. Van Hook and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. According to documents and information provided to the court, the Defendant was part owner of a medical laboratory. From 2011 through 2015, he filed false tax returns that underreported gross receipts earned from his business. The Defendant concealed from his tax return preparers at least two bank accounts reflecting income earned, and falsely characterized business receipts as non-taxable loans. As a result of these actions, he caused a tax loss of more than $1.9 million to the Internal Revenue Service (IRS). In addition to the term of imprisonment, United States District Judge S. Maurice Hicks, Jr. ordered him to one year of supervised release and to pay restitution to the IRS in the amount of $1,904,477.

Are you in trouble with the IRS?

New York City Tax Advocates

 

If your business was adversely affected by COVID-19

you need to take immediate action

Selig & Associates zealously represents individuals, businesses and entrepreneurs before the Internal Revenue Service ("IRS") and the New York State Department of Taxation and Finance. *We specialize in sales tax audits, unpaid income taxes; unpaid sales taxes [and] payroll tax problems. Negotiating reasonable tax settlements and affordable repayment plans for small business owners since 2006. Consultations are available in person or by telephone and emergency appointments are always available. To speak with a Federal Tax Practitioner, CPCU and Attorney call (212) 974-3435 or contact us Online.

Insurance Audits & Premium Disputes

 

If your business is having difficulty with its insurance carrier

you need to take immediate action

 

Selig & Associates. Specializing in Workers Comp, NYSIF and General Liability audit representation, including: risk management, loss reduction and insurance placement, large dollar premium assessments, employee misclassification, unreported income, experience and other rating issues. *Most premium disputes are settled and resolved within 60 days of our being retained. Consultations are available in person or by telephone and emergency appointments are always available. Call (212) 974-3435 or contact us Online.

IF YOUR BUSINESS OWES OVER $200K IN UNPAID TAXES – SELIG & ASSOCIATES CAN HELP

Selig & Associates is taking advantage of the COVID-19 crisis to avoid and defeat taxes. For years the New York State Department of Taxation and Finance has harassed and abused small businesses without the slightest bit of resistance, says David Selig of Selig & Associates. 

“Restaurants and bodegas have been an easy target for New York’s overly aggressive Enforcement Agents”

But when they locked down the City and crashed our economy, we saw a tremendous opportunity to “help small business-owners get out from under”. Accordingly, we devised and are implementing a bulletproof strategy that allows small businesses to legally avoid their tax debts. To this end, we are restructuring corporations and helping business-owners walk away from enforceable debts. 

“I don’t hate to say it says Selig, but the shelter-in-place orders, and our strategic tax planning, have given a lot of small business-owners a second chance”

IRS Tax Withholding Estimator - IR-2020-09 Selig & Associates, Tax Representation, Workers Comp Audits

WASHINGTON — The Internal Revenue Service has launched a new and improved Tax Withholding Estimator, designed to help workers target the refund they want by having the right amount of federal income tax taken out of their pay.

The Tax Withholding Estimator, now available on IRS.gov, incorporates the changes from the redesigned Form W-4, Employee's Withholding Certificate, that employees can fill out and give to their employers this year.

The IRS urges everyone to see if they need to adjust their withholding by using the Tax Withholding Estimator to perform a Paycheck Checkup. If an adjustment is needed, the Tax Withholding Estimator gives specific recommendations on how to fill out their employer's online Form W-4 or provides the PDF form with key parts filled out.

To help workers more effectively adjust their withholding, the improved Tax Withholding Estimator features a customized refund slider that allows users to choose the refund amount they prefer from a range of different refund amounts. The exact refund range shown is customized based on the tax information entered by that user.

Based on the refund amount selected, the Tax Withholding Estimator will give the worker specific recommendations on how to fill out their W-4. This new feature allows users who seek either larger refunds at the end of the year or more money on their paychecks throughout the year to have just the right amount withheld to meet their preference.

The new Tax Withholding Estimator also features several other enhancements, including one allowing anyone who expects to receive a bonus to indicate whether tax will be withheld. In addition, improvements added last summer continue to be available, including mobile-friendly design, handling of pension income, Social Security benefits and self-employment tax.

Starting in 2020, income tax withholding is no longer based on an employee's marital status and withholding allowances, tied to the value of the personal exemption. Instead, income tax withholding is generally based on the worker's expected filing status and standard deduction for the year. In addition, workers can choose to have itemized deductions, the Child Tax Credit and other tax benefits reflected in their withholding for the year.

It is important for people with more than one job at a time (including families in which both spouses work) to adjust their withholding to avoid having too little withheld. Using the Tax Withholding Estimator is the most accurate way to do this. As in the past, employees can also choose to have an employer withhold an additional flat-dollar amount each pay period to cover, for example, income they receive from the gig economy, self-employment, or other sources that is not subject to withholding.

 For more information about the updated Tax Withholding Estimator and the redesigned 2020 Form W-4, visit Tax Withholding Estimator FAQs and the FAQs on the 2020 Form W-4.

(212) 974-3435

Free Consultation Experienced Federal Tax Practitioner, CPCU and Attorney. Legally privileged consultations available Monday through Friday in our New York City offices. 

Proven Results ​Practicing before the Internal Revenue Service and New York State Department of Taxation and Finance. Successful Tax Representation, Workers Compensation Audits and Tax Planning Services. 

Effective Tax Advocates Specializing in unpaid Income, Sales and Payroll taxes. We negotiate excellent Payment Plans, Audits, Offers in Compromise and all other tax matters. Missing Tax Returns prepared and filed within 48 hours. For immediate assistance call (212) 974-3435.

Construction Companies NYSIF Premium Assessments, Workers Compensation and all other Insurance Audits. Specializing in Contested Audits, Employee Misclassification, Unreported Income, Application Fraud, Experience Rating and other W/C violations. 

Tax Advisors Our strategic Tax Planning and Tax Advisory services are designed to help Business-owners significantly reduce their income tax liability in 2020 and beyond. Keep more of what you make. Schedule a Free Consultation by calling or contacting us online.