Salesman Sentenced to Slammer for Tax Evasion

 

On October 27^th 2020 a silver-tonged salesman was sentenced to 24 months in the federal slammer for tax evasion, announced the Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division and the U.S. Attorney. According to court documents and statements made in court, the fast-talking salesman was an “automobile industry consultant” which is a highfaluting way of saying he sold automobile warranties (which isn’t a crime). The nitty-gritty down and dirty happened when he stopped filing tax returns and started attending “Tax Defier” meetings. Apparently, he was so excited about what he heard, that he purchased “Tax Defier” materials, and taking it to heart, began using Nevada nominee corporations to receive his income [and] more importantly, to use those shady Nevada corporations to conceal his income from the IRS. 

Tax Representation 

 

Specializing in unpaid sales and payroll withholding taxes. We represent individuals, businesses and entrepreneurs before the Internal Revenue Service and New York State Department of Taxation and Finance. Negotiating reasonable tax settlements and payment plans since 2006. Consultations are available in person or by telephone and emergency appointments are available upon request. To speak with a Federal Tax Practitioner, CPCU and Attorney call (212) 974-3435 or contact us Online. 

Insurance Audits

 

We successfully challenge large dollar premium assessments, payroll discrepancies, employee misclassification, experience and other rating issues. Specializing in Workers' Compensation and NYSIF audit representation. Most premium disputes are settled within 60 days of our being retained. Assistance with insurance coverage, loss reduction and risk management services. Consultations are available in person or by telephone and emergency appointments are always available. 

 

Workers Comp Audits, Tax Evasion [and] You

 

During a Workers Compensation Audit your company's payroll be reviewed, scrutinized and ostensibly verified. Auditors look at company payroll because  your  Workers Comp premium is based [in part] on the amount of compensation paid to your employees. 

Employment Tax Evasion Schemes

 

Employment tax evasion schemes can take a variety of forms. Some of the more prevalent methods of evasion include pyramiding, employee leasing, paying employees in cash, filing false payroll tax returns or failing to file payroll tax returns.

 

Pyramiding

 

"Pyramiding" of employment taxes is a fraudulent practice where a business withholds taxes from its employees but intentionally fails to remit them to the IRS. Businesses involved in pyramiding frequently file for bankruptcy to discharge the liabilities accrued and then start a new business under a different name and begin a new scheme.

 

Employment Leasing

 

Employee leasing is another legal business practice, which is sometimes subject to abuse. Employee leasing is the practice of contracting with outside businesses to handle all administrative, personnel, and payroll concerns for employees. In some instances, employee-leasing companies fail to pay over to the IRS any portion of the collected employment taxes. These taxes are often spent by the owners on business or personal expenses. Often the company dissolves, leaving millions in employment taxes unpaid.

 

Paying Employees in Cash

 

Paying employees, whole or partially, in cash is a common method of evading income and employment taxes resulting in lost tax revenue to the government and the loss or reduction of future social security or Medicare benefits for the employee.

 

Filing False Payroll Tax Returns or Failing to File Payroll Tax Returns

 

Preparing false payroll tax returns understating the amount of wages on which taxes are owed, or failing to file employment tax returns are methods commonly used to evade employment taxes.

 

 

Tax Representation

 

Specializing in unpaid sales and payroll withholding tax problems. We represent individuals, businesses and entrepreneurs before the Internal Revenue Service and New York State Department of Taxation and Finance. Negotiating reasonable tax settlements and payment plans since 2006. Consultations are available in person or by telephone and emergency appointments are available upon request. To speak with a Federal Tax Practitioner CPCU and Attorney call (212) 974-3435 or contact us Online. 

 

Insurance Audits

 

Workers Compensation, NYSIF and General Liability Audit Representation. We successfully challenge large dollar premium assessments, employee misclassification, experience and other rating issues. Most premium disputes are settled within 60 days of our being retained. Assistance with insurance coverage, loss reduction and risk management services. Consultations are available in person or by telephone and emergency appointments are always available. 

Coronavirus Cancels Christmas 1000 + NYC Restaurants Permanently Closed. Sales and Use Taxes

 

More than 1000 New York City restaurants have permanently closed during the State’s mandatory lockdown. But even in the best of times, running a successful restaurant in New York City is extremely difficult. 

 

Why? 

 

1.   Rent in New York City is prohibitively high.

2.   Real Estate Agents are notorious liars. 

3.   Most restaurateurs and investors are unreasonably optimistic. 

 

What Else?

 

In addition to rent, payroll and supplies, there’s also Workers Comp and Liability insurance (and don’t forget about those expensive annual insurance audits). There’s Federal, State and local taxes that have to be paid, not to mention Sales and Use taxes. There are licenses and permits and countless forms to be filed. And don’t forget that ever-expanding pandect of perplexing rules that must be complied with. And after you’re done paying your Employees [more than they’re probably worth] there’s an army of Accountants, Lawyers and a tumultuous torrent of fees and fines and shakedowns for you to contend with.  

 

Now that it’s Over I’m finally Free

 

You’re not free and it’s far from over. Now that your business is permanently closed, the good folks at the New York State Department of Taxation and Finance want you to know that they don’t give a tinker’s damn about your financial problems. Moreover, your unpaid Sales, Use and Payroll withholding taxes aren’t dischargeable in bankruptcy and since they “pierce the corporate veil” (which is a fancy way of saying you’re personally responsible) you can expect to be hearing from the Tax Department sooner than you’d like. 

 

What Should I Do?

 

Call Selig & Associates. We specialize in unpaid sales and payroll withholding tax problems. We represent individuals, businesses and entrepreneurs before the Internal Revenue Service and New York State Department of Taxation and Finance. Negotiating reasonable tax settlements and payment plans since 2006. Consultations are available in person or by telephone and emergency appointments are available upon request. To speak with a Federal Tax Practitioner CPCU and Attorney call (212) 974-3435 or contact us Online. 

The Sovereign Citizen Movement (is coming back like a bad penny)

Individuals and groups who identify with the Sovereign Citizen Movement claim that the Federal Government is operating outside its jurisdiction. They generally do not recognize the authority of Federal, State or local governments, and renounce their obligation to adhere to the laws, policies or regulations created by those governments. Since the 1990s, the IRS and Treasury Inspector General have been investigating illegal activities that pose direct threats to the IRS and its operations by individuals who identify themselves as Sovereign Citizens. Sovereign citizens often utilize fictitious financial instruments in attempts to satisfy legitimate debts. Sovereign citizens will often file liens against the real or personal property of Federal employees - tax officials or law enforcement officers, for example - in retaliation for those individuals’ performance of their official duties. Liens have also been filed against federal judges when those judges. 

 

Tax Representation

 

We represent individuals, businesses and entrepreneurs before the Internal Revenue Service and New York State Department of Taxation and Finance. Negotiating reasonable tax settlements and payment plans since 2006. Consultations are available in person or by telephone and emergency appointments are available upon request. To speak with a Federal Tax Practitioner CPCU and Attorney call (212) 974-3435 or contact us Online. 

Insurance Audits

 

Workers Compensation, NYSIF and General Liability Audit Representation. We successfully challenge large dollar premium assessments, employee misclassification, experience and other rating issues. Most premium disputes are settled within 60 days of our being retained. Assistance with insurance coverage, loss reduction and risk management services. Consultations are available in person or by telephone and emergency appointments are always available. 

New Yorker Pleads Guilty to Conspiring to File False Returns (He should have hired SELIG & Associates)

 

Another New Yorker pled guilty on [20 October 2020] to conspiracy to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. According to the indictment, the New Yorker filed false tax returns with the assistance of a return preparer. From 2011 through 2019, the New Yorker and others prepared and filed false returns through two tax preparation firms that reported significant tax withholdings based on fictitious Forms 1099-OID, in an effort to fraudulently obtain refunds from the IRS. The Forms 1099-OID falsely reported that financial institutions, creditors, and other entities had withheld federal income tax, when in reality no such taxes had been withheld. The New Yorker also filed false returns for himself and others, claiming more than $2,125,872 in refunds from the IRS. U.S. District Judge Eric R. Komitee scheduled sentencing for Feb. 24, 2021. The New Yorker faces up to five years in prison, as well as monetary penalties. As part of his plea agreement, the New Yorker has agreed to pay restitution to the IRS.

 

Tax Representation

 

We represent individuals, businesses and entrepreneurs before the Internal Revenue Service and New York State Department of Taxation and Finance. Negotiating reasonable tax settlements and payment plans since 2006. Consultations are available in person or by telephone and emergency appointments are available upon request. To speak with a Federal Tax Practitioner CPCU and Attorney call (212) 974-3435 or contact us Online. 

 

Insurance Audits

 

Workers Compensation, NYSIF and General Liability Audit Representation. We successfully challenge large dollar premium assessments, employee misclassification, experience and other rating issues. Most premium disputes are settled within 60 days of our being retained. Assistance with insurance coverage, loss reduction and risk management services. Consultations are available in person or by telephone and emergency appointments are always available. 

Businessman Pleads Guilty to Income Tax Evasion (He should have hired SELIG & Associates)

He owed more than $1.3 million to the IRS

 

On 14 October 2020 a businessman pleaded guilty to income tax evasion announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. According to court-filed documents, the businessman filed a 2006 individual income tax return reporting adjusted gross income of $1,502,749 and total tax due of $486,438. He did not pay all of the tax due and was assessed penalties and interest. In an effort to continue receiving income but to make it appear as if he did not have income or assets, the businessman used three nominee corporations to conduct his business and purchase assets. Between approximately 2010 and 2016, in an effort to further evade paying money owed on his taxes, the businessman filed four false bankruptcy petitions. Each of these petitions listed the IRS as a creditor. During the course of his bankruptcies, the businessman made false statements and filed fraudulent documents in which he concealed his ownership interests in the nominee corporations. As a result of the businessman actions, he caused a tax loss of approximately $1,360,682 to the IRS.

New York City Tax Advocates

 

If your business owes sales tax 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. 

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.