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.
Evaded Over $1 Million in Income and Employment TaxesA Long Island, New York, business owner was sentenced to 12 months and one day in prison today for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.According to documents filed in this case and statements made in court, Warren J. Krotz, 62, of Huntington, New York, owned and operated W. Krotz Enterprises Inc. (WKEI), a professional painting business that provided services throughout Long Island. From 2010 through 2016, Krotz evaded both his individual income and employment tax liabilities. During this time, Krotz cashed approximately $6 million in checks at several check-cashing facilities. These checks were gross receipts of WKEI, but Krotz did not report the amounts on WKEI’s corporate income tax returns. Krotz also paid approximately $2 million in cash wages to employees, and did not withhold and pay over to the Internal Revenue Service (IRS) approximately $300,000 in employment taxes that were due.Additionally, Krotz admitted to receiving approximately $3 million in income that he did not report on his personal tax returns. In total, Krotz admitted to causing a tax loss to the IRS of approximately one million dollars.In addition to the prison term, U.S. District Judge Denis R. Hurley sentenced Krotz to serve three years of supervised release and to pay restitution of $1,031,633 to the IRS.Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Jessica Moran and Kathryn Sparks of the Tax Division, who are prosecuting this case.
FreeConsultationFederal Tax Practitioner and Attorney. We provide successful Tax Representation before the Internal Revenue Service and New York State Department of Taxation and Finance.Schedule a Free Legally Privileged consultation today. Meet personally in our conveniently located New York City office.
ProvenResultsWe solve Tax Problems so you can get on with your life. Specializing in unpaid Income, Sales and Payroll taxes. We negotiate excellent Payment Plans, Offers in Compromise, Audits and all other tax matters.
Expedited Service Do you have un-filed Tax Returns? We can prepare and file all of your missing tax returns in just 48 hours, guaranteed. Same day and emergency appointments are available Monday through Friday.
New York Tax Law 1801 establishes a “tax fraud act” and the basis of all Criminal Tax Fraud offenses. Tax fraud acts are enhanced depending on the monetary value of the fraud. The law does not differentiate monetary value between under filing or receiving an excessive refund. Generally, if you willfully act (or cause another person to act) in the following manner, then "you have perpetrated tax fraudIf you committed tax fraud - then you'dbetter call Selig & Associates
Fail to make, render or file any required report or return; or
File a tax return or any other required document where you know that the document contains materially false or fraudulent information; or
Supply materially false or fraudulent information in connection with any return, audit or investigation or fail to supply the correct information in a timely manner; or
Engage in a scheme to defraud the State of New York by false representations as to any material matter associated with any tax under this section of law; or
Fail to remit taxes collected on behalf of the State; or
Fail to collect certain taxes such as sales taxes; or
Intentionally evade any tax or failing to pay a tax; or
Issue fraudulent exemption certificate or any document evidencing a claim that taxes do not apply to a particular transaction.
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 dayand 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 Attorneycontact us Online
A Boca Raton, Florida, resident pleaded guilty to conspiring to impede the lawful functions of the Internal Revenue Service (IRS) and conspiring to steal from an organization receiving federal funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. According to court documents, from January 2013 through December 2017, Scott Jawetz and his co-defendants executed a scheme, using the company Blue Horseshoe Consulting Inc. (Blue Horseshoe), to obtain police reports, stolen from the Detroit Police Department, which contained automobile crash victim information. Jawetz and his co-conspirators used the stolen information to solicit automobile accident victims for medical and chiropractic services. Jawetz and his co-conspirators also underreported to the IRS gross receipts they received from Blue Horseshoe business operations and the total wages Blue Horseshoe paid to its employees. United States District Court Judge Matthew F. Leitman scheduled sentencing for Jawetz for Jan. 15, 2020. Jawetz faces a maximum sentence of five years in prison and a $250,000 fine on each of the two conspiracy counts. Jawetz also faces a period of supervised release, restitution, and monetary penalties. Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Tax Division Trial Attorneys Mark McDonald and William Guappone, who are prosecuting the case.
Wetake a practical approach to problem solving and strive to obtain the best possible outcome for our clients.
Effective Tax Advocates We successfully resolve most civil and criminal tax problems including suspended Drivers Licenses and Passports. We provide practical solutions to difficult IRS and State tax problems. Specializing in unpaid sales and payroll taxes. We negotiate affordable installment agreements 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 please call us directly at (212) 974-3435 or contact us online.
Insurance Claims We settle insured property damage claims in the shortest amount of time and at the least cost to the policyholder and insurance company. Insurance litigation is costly and time consuming.Accordingly we provide policyholders and insurance companies with a cost effective alternative to litigation. Commercial and residential insurance representation includes: Environmental Damage, Mold (removal & remediation) Fire, Business Interruption, Burglary, Vandalism, Windstorm and Water Damage.
Selig & Associates Our offices are conveniently located in New York City and we meet with each and every client personally. To schedule a legally privileged consultation with a results driven Federal Tax Practitioner CPCU and Attorney please call us directly at (212) 974-3435.
A former attorney recently convicted of securities fraud by a jury in the District of Columbia, pleaded guilty today to failure to file an income tax return and pay taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. Brynee Baylor pleaded guilty today to one count of willfully failing to timely file a 2010 individual income tax return and to pay taxes. She admitted to causing a tax loss of $79,000. On April 30, 2019, the jury convicted Baylor of one count of conspiracy to commit securities fraud, one count of securities fraud, and five counts of first-degree fraud under District of Columbia law. According to court documents and the evidence presented at trial, Baylor, a former partner in the D.C. law firm Baylor & Jackson PLLC, conspired with a Pennsylvania man and his company, known as the Milan Group, to recruit investors to a purported trading program. Investors were promised extremely large profits in a short time with little or no risk. In 2011, the Securities and Exchange Commission (SEC) sued Baylor and others for fraud in connection with the purported trading program. Sentencing is scheduled for Sept. 12. Baylor faces a maximum sentence of one year in prison for the failure to file a tax return conviction, five years in prison for the conspiracy count, 20 years in prison for the securities fraud count, and 10 years in prison for each of the first-degree fraud counts. Baylor also faces a term of supervised release and monetary penalties. Principal Deputy Assistant Attorney General Zuckerman thanked the SEC for its invaluable assistance and commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Jeffrey McLellan and Eric Powers 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 car, subway 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 David Selig, Federal Tax Practitioner, CPCU, Claims Adjuster and Attorney Bradley H. Dorin, 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 David Selig, CPCU, Claims Adjuster and Attorney Bradley H. Dorin, 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.
He’s been accused of failing to remit $186,000 in sales tax collected from customers
The New York State Department of Taxation and Finance today announced felony tax fraud and grand larceny charges against Robert V. Gourlay Jr., 56. As the operator of Fresh Healthy Café, Gourlay is accused of collecting more than $186,000 in sales tax from his customers and failing to remit that money to New York State, as required by law. He ran the business between August 2010 and February 2018. Gourlay was arrested and arraigned on Wednesday, June 12. "Business owners who disregard their obligation to remit sales tax violate the trust of their customers, deprive the communities where they operate of revenue needed for vital services, and put similar businesses at a competitive disadvantage,” said Executive Deputy Commissioner Andrew Morris. A criminal complaint is only an accusation; the defendant is presumed innocent until proven guilty.
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.
The New York State Department of Taxation and Finance announced guilty pleas to criminal tax fraud and grand larceny charges by a business owner and his two Queens businesses. Between March 1, 2009, and February 28, 2018, Pyong Chon Yim, 56, and his businesses, Advance Auto Sport Corp. and Advance Motor Sport Inc., located at 35-50 College Point Boulevard, College Point, NY, failed to remit nearly $251,000 in sales tax collected from customers. “Profiting off the backs of honest neighbors is not only bad business, it’s criminal,” said New York State Executive Deputy Commissioner of Taxation and Finance Andrew Morris. “This illegal activity robs local communities of critical funding for public programs and services New Yorkers rely on. We’ll continue to work with all levels of law enforcement, including the Queens District Attorney’s Office, to ensure those committing tax fraud are held accountable.” Acting Queens District Attorney John M. Ryan said, “The defendant collected tax dollars and then pocketed the cash. This is wholly unacceptable and not only cheats the local government, but also every other honest taxpayer. The defendant has admitted his guilt and will make full restitution. I want to commend the New York State Department of Taxation and Finance for their work in this case. We will continue to collaborate with our law enforcement partners to prosecute those who knowingly commit tax fraud.”
Sean was sentenced to 33 months in prison, three years of supervised release and ordered to pay $85,000 in restitution to victims of a credit card processing fraud scheme as well as $757,000 in restitution to the Internal Revenue Service. Mecham previously pleaded guilty to conspiracy to commit wire fraud and willful failure to collect or pay over taxes. Several of Mecham’s family members, as well as one of Mecham’s employees, also previously pleaded guilty to related charges. Mecham served as the CEO of a Mesa-based company that provided credit card processing services. Mecham, and others acting at his direction, intentionally concealed or misrepresented the lease terms for credit card pin-pad machines that were sold to customers. Mecham also directed employees to forge customer signatures on lease contracts and to alter documents. Mecham and his wife also engaged in a separate scheme to withhold and misappropriate employee payroll taxes that should have been remitted to the IRS. Mecham used employee withholdings to sustain a lavish lifestyle which included the purchase of a Maserati, expensive off-road racing vehicles, travel and other expensive personal items.
Serious Tax Problems Deserve Serious Attention Selig & Associates provides the most aggressive tax representation allowed by law. 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 New York State Drivers Licenses. To schedule a Free Consultation call (212) 974-3435.
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 are scheduled Monday through Thursday between the hours of 9:00 a.m. and 5:00 p.m. and on Fridays between 9:00 a.m. and 3:00 p.m.
We Represent Restaurants, Nightclubs, Pizzerias and CafésWe negotiate excellent installment agreements and provide restaurant and business owners with effective sales tax and audit representation, including unfiled tax returns and Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.
We Represent Businesses, Contractors and Medical Practices We solve difficult payroll tax problems. We negotiate affordable repayment plans with the IRS and State. Civil and criminal tax representation also includes: audits, examinations, bank levies, tax liens, compliance checks, missing tax returns and Workers Compensation issues. For immediate assistance call (212) 974-3435 or contact us Online.
Commercial Insurance Consulting We assist builders, businesses, nightclubs, schools and religious institutions with their specialty insurance needs, including: Environmental Issues; Active Shooter and Workplace Violence Protection; Cyber Insurance, Sexual Harassment and Employment Practices Liability Insurance. For more information call us directly at (212) 974-3435.
Insurance Settlements 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. Appointments are scheduled Monday through Thursday between the hours of 9:00 a.m. and 5:00 p.m. and on Fridays between 9:00 a.m. and 3:00 p.m.
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 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.
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 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.
A man pleaded guilty to filing a false tax return that failed to report millions of dollars in foreign bank accounts and the resulting income, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Elie Waknine held millions of dollars in an offshore account in Israel at Bank Leumi Le-Israel B.M. from approximately 1994 to 2011. Despite having this account, Waknine filed a tax return for 2007 that falsely claimed he did not have financial interest in or signature authority over any foreign financial accounts. In an effort to further hide his money, Waknine instructed Bank Leumi to hold bank mail from delivery to the United States, and obtained access to his offshore funds through the use of “back-to-back” loans, which were designed to enable borrowers to tap their concealed accounts. These lending arrangements permitted Waknine to have funds issued by Leumi’s U.S. branch that were secretly secured by funds in his undeclared accounts in Israel. In 2011, Waknine closed his Bank Leumi Israel account, but used the $2.4 million he received from closing the account to open a new undisclosed foreign bank account at another bank in Israel. Over the period 1994-2015, Waknine held undisclosed foreign bank accounts in four banks in three countries, each with assets of at least $1 million.
In December 2014, Bank Leumi entered into a deferred prosecution agreement, in which the bank admitted to conspiring from at least 2000 until early 2011 to aid and assist U.S. taxpayers to prepare and present false tax returns by hiding income and assets in offshore bank accounts in Israel and other foreign locations. Under the terms of the deferred prosecution agreement, Bank Leumi paid the United States a total of $270 million and continues to cooperate with respect to civil and criminal tax investigations.
U.S. citizens, resident aliens, and permanent legal residents with a foreign financial interest in or signatory authority over a foreign financial account worth more than $10,000 are required to file an FBAR each year disclosing the account, and are required to report the account and any resulting income on their annual tax returns.
Waknine faces a maximum sentence of three years in prison, as well as a period of supervised release, restitution and monetary penalties. District Court Judge David O. Carter set Waknine’s sentencing for January 28, 2019.
Principal Deputy Assistant Attorney General Zuckerman commended special agents from IRS-Criminal Investigation, who investigated the case, and Tax Division Assistant Chief Elizabeth Hadden and Trial Attorney Eric Schmale, who are prosecuting the case. The Tax Division thanks the U.S. Attorney’s Office for its assistance. Selig & Associates. NYC's Most Effective Tax AdvocatesWe Solve Income, Payroll and Sales Tax Problems. IRS and New York State Tax Representation includes Sales Tax Audits, Unpaid Payroll Taxes, Criminal Investigations, Installment Agreements and other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney call (212) 974-3435 or Contact Us Online.
Some taxpayers assert that they are not required to file federal tax returns because the filing of a tax return is voluntary. Proponents of this contention point to the fact that the IRS tells taxpayers in the Form 1040 instruction book that the tax system is voluntary. Additionally, these taxpayers frequently quoteFlora v. United States, 362 U.S. 145, 176 (1960), for the proposition that "[o]ur system of taxation is based upon voluntary assessment and payment, not upon distraint."
The Law:The word “voluntary,” as used in Flora and in IRS publications, refers to our system of allowing taxpayers initially to determine the correct amount of tax and complete the appropriate returns, rather than have the government determine tax for them from the outset. The requirement to file an income tax return is not voluntary and is clearly set forth in sections 6011(a), 6012(a), et seq., and 6072(a) of the Internal Revenue Code. See also Treas. Reg. § 1.6011-1(a).
Any taxpayer who has received more than a statutorily determined amount of gross income in a given tax year is obligated to file a return for that tax year. Failure to file a tax return could subject the non-compliant individual to civil and/or criminal penalties, including fines and imprisonment. InUnited States v. Tedder, 787 F.2d 540, 542 (10th Cir. 1986), the court stated that, “although Treasury regulations establish voluntary compliance as the general method of income tax collection, Congress gave the Secretary of the Treasury the power to enforce the income tax laws through involuntary collection . . . . The IRS’ efforts to obtain compliance with the tax laws are entirely proper.” The IRS warned taxpayers of the consequences of making this frivolous argument in Rev. Rul. 2007-20, 2007-1 C.B. 863 and in Notice 2010-33, 2010-17 I.R.B. 609.
Relevant Case Law:
Helvering v. Mitchell, 303 U.S. 391, 399 (1938) – the Supreme Court stated that “[i]n assessing income taxes, the Government relies primarily upon the disclosure by the taxpayer of the relevant facts . . . in his annual return. To ensure full and honest disclosure, to discourage fraudulent attempts to evade the tax, Congress imposes [either criminal or civil] sanctions.”
United States v. Tedder, 787 F.2d 540 (10th Cir. 1986) – the 10th Circuit upheld a conviction for willfully failing to file a return, stating that the premise “that the tax system is somehow ‘voluntary’ . . . is incorrect.”
United States v. Richards, 723 F.2d 646 (8th Cir. 1983) – the 8th Circuit upheld a conviction and fines imposed for willfully failing to file tax returns, stating that the claim that filing a tax return is voluntary “was rejected inUnited States v. Drefke, 707 F.2d 978, 981 (8th Cir. 1983).”
United States v. Hartman, 915 F.Supp. 1227, 1230 (M.D. Fla. 1996) – the court held that, “The assertion that the filing of an income tax return is voluntary is, likewise, frivolous.” The court noted that I.R.C. § 6012(a)(1)(A), “requires that every individual who earns a threshold level of income must file a tax return” and that “failure to file an income tax return subjects an individual to criminal penalty.”
Other Cases:
United States v. Drefke, 707 F.2d 978 (8th Cir. 1983);United States v. Schulz, 529 F. Supp. 2d 341 (N.D.N.Y. 2007);Foryan v. Commissioner, T.C. Memo. 2015-114, 109 T.C.M. (CCH) 1591 (2015);Jones v. Commissioner,T.C. Memo. 2014-101, 107 T.C.M. (CCH) 1495 (2014).
SELIG & Associates: Proven ResultsWe solve Income, Payroll and Sales Tax Problems. For a FREE legally privileged consultation with a Federal Tax Practitioner and licensed Attorney call (212) 974-3435 or through our Confidential Contact Form.
Successful
Civil and Criminal Tax RepresentationSelig & Associates
practices before the Internal Revenue Service (“IRS”) the New York State
Department of Taxation and Finance (“NYSDTF”) the Department of Justice Tax
Division (“DOJ”) and the Defense Office of Hearings and Appeals
(“DOHA”). *To schedule a FREE legally privileged consultation with a
licensed Federal Tax Practitioner and Attorney call Selig & Associates
directly (212) 974-3435
Dear XXXXXX:
This is a final determination regarding your foundation
classification. This modifies our letter dated August 12, 20xx, in which we
determined that you were an organization exempt from Federal income tax under
section 501 (c)(3) of the Internal Revenue Code (IRC) as a private operating
foundation described in section 4942(j)(3). We have modified your foundation
status to that of an organization described in IRC section 509(a) as a private
non-operating foundation, effective for tax years beginning January 1, 20xx.
Your tax-exempt status under section 501 (c)(3) of the
Internal Revenue Code is not affected. Grantors and contributors may rely on
this determination, unless the Internal Revenue Service publishes a notice to
the contrary. Because this letter could help resolve any questions about your
private foundation status, please keep it with your permanent records.
Proven Results Selig & Associates successfully resolves IRS & NYS
tax problems including: Tax Crimes; Tax Evasion; Failure to File a
Tax Return and Criminal Non-Filing; Filing False Tax Returns; Installment Agreements;
Partial Payment Agreements; IRS Audits; Sales Tax Audits; Sales Tax
Controversies; Wage Garnishments; Bank Levies; Seizure of Real Property; Innocent
Spouse Relief; Trust Fund Recovery Penalty; Payroll Taxes; Workers Compensation
Insurance Audits ("Workers Comp"); Statute of Limitations; Offer in
Compromise ("OIC"); Administrative Appeals; Collection Due
Process Hearings ("CDP") and most other tax matters. *To
schedule a FREE legally privileged consultation with a licensed Federal Tax
Practitioner and Attorney call Selig & Associates directly (212) 974-3435
We previously provided you a report of examination
explaining the proposed modification of your tax-exempt status. At that time,
we informed you of your right to contact the Taxpayer Advocate, as well as your
appeal rights. On July 20, 20xx, you signed Form 6018, Consent to Proposed
Action - Section 7428, in which you agreed to the modification of your
foundation classification to 509(a) organization. This is a final determination
letter with regard to your Federal tax-exempt status under section 501 (a) of
the Code.
You are required to file Form 990 PF, Return of Private
Foundation. Form 990 PF must be filed by the 15th day of the fifth month after
the end of your annual accounting periods. A penalty of $20 a day is charged
when a return is filed late, unless there is a reasonable cause for the delay;
however, the maximum penalty charged cannot exceed $10,000 or 5 percent of your
gross receipts for the year whichever is less. In addition organizations with
gross receipts exceeding $1,000,000 for any year will be charged a penalty of
$100 a day when a return is filed late; however, the maximum penalty charged
cannot exceed $50,000. These penalties may also be charged if a return is not
complete, so be sure your return is complete before you file it.
If you are subject to the tax on unrelated business income
under section 511 of the Code, you must also file an income tax return on Form
990-T, Exempt Organization Business Income Tax Return. If you decide to contest
this determination in court, you must initiate a suit for a declaratory
judgment in the United States Tax Court, the United States Claims Court, or the
District Court of the United States for the District of Columbia before the 91
st day after the date this final determination letter was mailed to you.
Contact the clerk of the appropriate court for rules for initiating suits for
declaratory judgment. You may write to the Tax Court at the following address:
United States Tax Court,
400 Second Street
Washington, D.C. 20217
Sincerely,
Maria
Hooke
Director,
Exempt Organizations Examinations
FYIThe
Taxpayer Advocate Service (TAS) is an independent organization within the IRS
that can help protect your rights. We can offer you help if your tax problem is
causing a hardship, or you've tried but haven't been able to resolve your
problem with the IRS. If you qualify for our assistance, which is always free,
we will do everything possible to help you. Visit
taxpayeradvocate@irs.gov or call 1-877-777-4778.
Free information about the IRS Taxpayer
Advocate Service
The Taxpayer Advocate Service
(TAS) is an independent organization within the IRS that helps taxpayers who
are experiencing unresolved federal tax problems. Here are 10 things every
taxpayer should know about TAS:
1.The Taxpayer Advocate Service is your voice at the IRS.
2.You may be eligible for our help if you’ve tried to resolve your
tax problem through normal IRS channels and have gotten nowhere, or you believe
an IRS procedure just isn't working as it should.
3.We help taxpayers whose problems are causing financial
difficulty. This includes businesses, organizations and individuals.
4.We’ll do everything we can to resolve your problem. And
our service is always free.
5.If you qualify for our help, you’ll be assigned to one advocate
who will be with you at every turn.
6.We have at least one local taxpayer advocate office in every
state, the District of Columbia and Puerto Rico. To find your advocate:
