Topic No. 205 Innocent Spouse Relief

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Many married taxpayers choose to file a joint tax return because of certain benefits this filing status allows them. When filing jointly, both taxpayers are jointly and severally liable for the tax and any additions to tax, interest, or penalties that arise from the joint return even if they later divorce. Joint and several liability means that each taxpayer is legally responsible for the entire liability. Thus, both spouses on a married filing jointly return are generally held responsible for all the tax due even if one spouse earned all the income or claimed improper deductions or credits. This is also true even if a divorce decree states that a former spouse will be responsible for any amounts due on previously filed joint returns. In some cases, however, a spouse can get relief from being jointly and severally liable.

Types of Relief

There are three types of relief from the joint and several liability of a joint return:

1. Innocent Spouse Relief provides you relief from additional tax you owe if your spouse or former spouse failed to report income, reported income improperly or claimed improper deductions or credits.
2. Separation of Liability Relief provides for the separate allocation of additional tax owed between you and your former spouse or your current spouse you're legally separated from or not living with, when an item wasn't reported properly on a joint return. You're then responsible for the amount of tax allocated to you.
3. Equitable Relief may apply when you don't qualify for innocent spouse relief or separation of liability relief for something not reported properly on a joint return and generally attributable to your spouse. You may also qualify for equitable relief if the amount of tax reported is correct on your joint return but the tax wasn't paid with the return.

Note: You must request innocent spouse relief or separation of liability relief no later than 2 years after the date the IRS first attempted to collect the tax from you. For equitable relief, you must request relief during the period of time the IRS can collect the tax from you. If you're looking for a refund of tax you paid, then you must request it within the statutory period for seeking a refund, which is generally three years after the date the return is filed or two years following the payment of the tax, whichever is later. See Publication 971, Innocent Spouse Relief for additional restrictions on refunds available under innocent spouse relief, equitable relief, and relief based on community property laws. Refunds aren't available under separation of liability relief.

Innocent Spouse Relief

You must meet all of the following conditions to qualify for innocent spouse relief:

• You filed a joint return that has an understatement of tax that's solely attributable to your spouse's erroneous item. An erroneous item includes income received by your spouse but omitted from the joint return. Deductions, credits, and property basis are also erroneous items if they're incorrectly reported on the joint return
• You establish that at the time you signed the joint return you didn't know, and had no reason to know, that there was an understatement of tax and
• Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understatement of tax

Separation of Liability Relief

To qualify for separation of liability relief, you must have filed a joint return and must meet one of the following requirements at the time you request relief:

• You're divorced or legally separated from the spouse with whom you filed the joint return
• You're widowed, or
• You haven't been a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you request relief

If you had actual knowledge of the item that gave rise to the deficiency at the time you signed the joint return, you don't qualify for separation of liability relief.

Equitable Relief

If you don't qualify for innocent spouse relief or separation of liability relief, you may still qualify for equitable relief. To qualify for equitable relief, you must establish that under all the facts and circumstances, it would be unfair to hold you liable for the deficiency or underpayment of tax. In addition, you must meet the other requirements listed in Publication 971, Innocent Spouse Relief. See Revenue Procedure 2013-34 (PDF) for information about how the IRS will take into account abuse and financial control by the nonrequesting spouse in determining whether equitable relief is warranted.

Form to File

To seek innocent spouse relief, separation of liability relief, or equitable relief, you should submit to the IRS a completed Form 8857, Request for Innocent Spouse Relief (PDF) or a written statement containing the same information required on Form 8857, which you sign under penalties of perjury. You may also refer to Publication 971, Innocent Spouse Relief for more information. If you request relief from the joint and several liability of a joint return, the IRS is required to notify the spouse you filed jointly with of your request and allow him or her to provide information for consideration regarding your claim.

Community Property States

If you lived in a community property state and didn't file as married filing jointly, you might qualify for relief from the operation of state community property law. Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Refer to Publication 971 for more details.

Injured Spouse vs. Innocent Spouse

An injured spouse claim is for allocation of a refund of a joint refund while an innocent spouse claim is for relief or allocation of a joint and several liability reflected on a joint return. You're an injured spouse if all or part of your share of a refund from a joint return was or will be applied against the separate past-due federal tax, state tax, child or spousal support, or federal non-tax debt (such as a student loan) owed by your spouse. If you're an injured spouse, you may be entitled to recoup your share of the refund. For more information, see Form 8379, Injured Spouse Allocation (PDF) or refer to Topic No. 203.

Doctor Sentenced to Prison for Tax Evasion (he should have hired Selig & Associates)

He Tried to Thwart IRS Collection Efforts

On October 2^nd 2019 another medical doctor was sentenced to 12 months and one day in prison for evading the payment of his income taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney R. Andrew Murray. According to documents and information provided to the court, from May 2012 to December 2015, the good doctor took several actions to evade payment of federal income taxes, interest, and penalties he accrued over six previous tax years. The sawbones ignored a duly-issued Internal Revenue Service (IRS) summons to appear before an IRS collections officer with his pertinent financial records.  After the IRS sought and received a court order compelling him to comply with the summons, he provided minimal information and omitted records related to any financial accounts and assets he may have had. The doctor also hid his assets from the IRS by depositing his paychecks on a reloadable debit card and having wages issued in the name of a company he controlled rather than directly to himself.  

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Specializing in Workers Compensation, Payroll, Sales and Income Tax representation for Businesses, Individuals, Restaurants and Construction Companies. 

Civil and Criminal Workers Compensation representation includes: Audits, NYSIF Examinations, Premium Disputes, Employee Misclassification, Underreporting, Unreported Income, and Failure to Keep Accurate Payroll Records. 

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In addition to the term of imprisonment, U.S. District Judge Conrad ordered the despondent doctor to serve one year of supervised release and to pay a $10,000 fine. Restitution will be ordered at a later date.

Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Murray thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kevin Schneider and Assistant Chief Todd Ellinwood of the Tax Division, who are prosecuting the case.

Man Pleads Guilty to Payroll Tax Fraud Failed to Pay IRS $1 Million in Employment Taxes & Employee Withholdings

A computer software development company owner pleaded guilty today to failing to account for and pay over employment taxes withheld from his employees’ wages announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Trent Shores for the Northern District of Oklahoma. 

According to documents and information provided to the Court, as the owner and operator of Tulsa-based Zealcon Corporation, Earenest J. Grayson Jr. was responsible for withholding, accounting for and paying over to the Internal Revenue Service (IRS) payroll taxes and withholdings due on the wages paid to Zealcon employees. For the period, January 2014 through June of 2016, Grayson intentionally caused a total tax loss of more than $1 million by intentionally not paying to the IRS income and social security taxes withheld from Zealcon employees’ wages and social security taxes due from Zealcon on those wages.

“Failing to account for or pay payroll taxes is not acceptable,” said Principal Deputy Assistant Attorney General Zuckerman of the Justice Department’s Tax Division. “The Department of Justice, working with the IRS, will ensure that our tax system is fairly enforced throughout the country.”

“Earenest Grayson is a dishonest employer who cheated both his employees and the United States government of more than $1,000,000 in stolen payroll taxes. Some of those taxes were payments for the Social Security and Medicare coverage of the employees,” said U.S. Attorney Trent Shores. “I hope Mr. Grayson’s potential prison sentence will dissuade other business owners from trying to cheat the system. Millions of honest small businesses pay their fair share of taxes to finance government operations as well as Social Security and Medicare for the elderly. Unfortunately, Mr. Grayson’s choice not to do so has subjected him to criminal penalties.”

United States District Court Judge Claire V. Eagan scheduled Grayson’s sentencing for Oct. 3, 2019. 

Selig & Associates is a boutique Tax Representation and Insurance Claims settlement firm in New York City. To schedule a legally privileged consultation with a Federal Tax Practitioner CPCU and Attorney, please call us directly at (212) 974-3435. 

We take a practical approach to problem solving and strive to obtain the best possible outcome for our clients.

Effective Tax Advocacy We successfully resolve 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, call us directly at (212) 974-3435 or contact us online. 

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New Yorker Charged with Possessing 8,300 Untaxed Cigars

NYS Tax Department criminal investigators also seized cash and rolling supplies

The New York State Department of Taxation and Finance announced the arrest on June 17, 2019, of a Buffalo man for allegedly possessing 8,299 untaxed cigars and 30 small boxes of tobacco-based wraps used to roll cigars. They also seized $795 in cash in the case. New York State Tax Department Criminal Investigations Division investigators arrested Mohamed A. Saleh, 40, of 454 E. Utica Street, Buffalo, and charged him with the crime of possessing more than 2,500 untaxed cigars. Additional charges are pending. Saleh was arrested after he allegedly attempted to make a delivery of untaxed cigars to a Buffalo deli. Investigators pursued the case after learning that Saleh would regularly travel to Pennsylvania to pick up a variety of tobacco products, which he then allegedly sold to various Buffalo delis in violation of the law. Saleh is not registered in New York State as a distributor of tobacco products. “Those who evade our cigarette and tobacco products tax deprive communities and the state of revenue needed for vital services and put honest businesses at a competitive disadvantage,” said New York State Executive Deputy Commissioner of Taxation and Finance Andrew Morris. “We’ll continue to work with all our law enforcement partners to bring tax criminals to justice, and thank the Erie County District Attorney for prosecuting this case.” Saleh is scheduled to appear in Erie County Court on July 15, 2019. A criminal complaint is only an accusation; the defendant is presumed innocent until proven guilty.

Selig & Associates We 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 call (212) 974-3435 or contact us online. Your initial consultation is absolutely Free.

Tax Representation Our 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 Claims Is 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 & Associates Our primary skill set 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. 

IRS Enforcement Action Against Offshore Depositors (a/k/a “Cheaters”) Continues with a Vengeance

The IRS says people involved in offshore tax avoidance should come in voluntarily and face the music. (IR-2019-43) Hiding money or assets in unreported offshore accounts remains on the Internal Revenue Service’s “Dirty Dozen” list of tax scams for 2019, the agency said today. Compiled annually, the “Dirty Dozen” lists a variety of common scams that taxpayers may encounter anytime, including offshore schemes. Many of these peak during filing season as people prepare their tax returns or seek help with their taxes.Taxpayers should remain wary of offshore avoidance schemes. Following the IRS intensifying efforts on offshore issues in recent years, many taxpayers have already voluntarily disclosed their participation in these schemes. The IRS conducted thousands of offshore-related civil audits that resulted in the payment of tens of millions of dollars in unpaid taxes. The IRS has also pursued criminal charges leading to billions of dollars in criminal fines and restitution.“Offshore evasion remains a primary focal point of overall IRS enforcement efforts,” said IRS Commissioner Chuck Rettig. “Our Criminal Investigation and civil enforcement teams work closely with the Justice Department in the international arena to ensure our nation’s tax laws are followed. Taxpayers considering hiding funds or assets offshore should think twice; the civil penalties and criminal sanctions can be severe.” Illegal scams like these can lead to significant penalties as well as interest and possible criminal prosecution. The IRS Criminal Investigation Division works closely with the Department of Justice to shut down scams and prosecute the criminals behind them.

Hiding income offshore

Over the years, numerous individuals have been identified as evading U.S. taxes by attempting to hide income in offshore banks, brokerage accounts or nominee entities. They then access the funds using debit cards, credit cards or wire transfers. Others have used foreign trusts, employee-leasing schemes, private annuities or insurance plans for the same purpose. The IRS uses information gained from its investigations to pursue taxpayers with undeclared accounts, as well as bankers and others suspected of helping clients hide their assets overseas. While there are legitimate reasons for maintaining financial accounts abroad, there are reporting requirements that need to be fulfilled. U.S. taxpayers who maintain such accounts and who do not comply with reporting requirements are breaking the law and risk significant fines, as well as the possibility of criminal prosecution. The IRS reminds taxpayers who have failed to properly report their offshore investments or pay tax on these investments’ income, to come forward.  Since the circumstances of taxpayers vary widely, the IRS offers several options for addressing the noncompliance.

Third-party reporting  

Under the Foreign Account Tax Compliance Act (FATCA) and the network of intergovernmental agreements between the U.S. and partner jurisdictions, automatic third-party account reporting continues. The IRS receives more information regarding potential non-compliance by U.S. persons because of the Department of Justice’s Swiss Bank Program. This information makes it less likely that offshore financial accounts will go unnoticed by the IRS. Penalties for failure to properly report offshore transactions can be severe. A summary of these potential penalties as well as a comparison of what must be reported on Form 8938, Statement of Specified Foreign Financial Assets, and the Report of Foreign Bank and Financial Accounts (FBAR) can be found on IRS.gov.

Selig & Associates We 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 Representation Our 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 Claims Is 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 & Associates Our 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. 

Concerning IRS Telephone Scams

Phone calls from criminals impersonating IRS agents remain an ongoing threat to taxpayers. The IRS has seen a surge of these phone scams in recent years as con artists threaten taxpayers with police arrest, deportation and license revocation, among other things. (IR-2019-28).

WHO, WHAT, WHEN, WHERE, WHY - Just the Facts

Who Selig & Associates is a boutique tax advocacy firm in Midtown Manhattan. Our Tax Advocates are experienced, result driven and offer practical solutions to difficult problems. To schedule a legally privileged consultation with a Federal Tax Practitioner and Attorney call (212) 974-3435 or contact us online. 

What  We represent individuals and businesses before the IRS and State and specialize in unpaid income, sales and payroll taxes. We negotiate affordable payment plans and resolve all civil and criminal tax issues, including suspended NYS Drivers Licenses. 

When Same day and emergency appointments are scheduled Monday through Friday between the hours of 9:00 a.m. and 5:00 p.m. 

Where Our offices are conveniently located and easily accessible by subway, car and train. 

Why We’re successful because we provide practical solutions. Missing tax returns can be prepared and filed within 48 hours, guaranteed.   

Tax Representation before the IRS & NY State (advertisement)

Selig & Associates provides the most aggressive tax representation allowed by law. To schedule a legally privileged consultation with a Federal Tax Practitioner and Attorney please call (212) 974-3435 or contact us online. 

We represent Individuals and Businesses before the IRS and State and specialize in unpaid Income, Sales and Payroll taxes. We negotiate excellent payment plans, compromise tax debts and resolve all civil and criminal tax issues, including suspended New York State Drivers Licenses. 

We provide Restaurant and Business owners with effective Sales and Payroll tax representation, including audits and all Department of Labor and Workers Compensation issues. Missing tax returns can be prepared and filed within 48 hours, guaranteed.   

Our New York City offices are conveniently located and easily accessible by car, train and subway. Same day and emergency appointments are scheduled Monday through Friday.

Insurance Salesman Sentenced on Fraud and Tax Charges

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

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

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

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

Tami Mae May was sentenced to 24 months in prison for failing to pay federal taxes for more than seven years. May pleaded guilty to obstruction of due administration of Internal Revenue laws. From 1998 through 2004, May failed to file any income tax returns for the excavating business she ran with her husband, despite that fact that the business earned substantial income during that time. When notified by the IRS in April 2005 that the business owed tax debt, penalties and interest, May embarked on an eight-year campaign of frivolous filings, in an effort to obstruct the administration of Internal Revenue laws. May filed a host of fake documents with the IRS, including a “zero income” tax return, Forms 1099-OID falsely claiming that her husband had made payments to various IRS Revenue Officers, falsely claiming that the Mays or their business had received “original issue discounts” and had “federal tax withheld” by various banks and credit card companies, and forms claiming that the Mays were not United States Citizens, but instead were permanent residents of the “Kingdom of Heaven.” May also made nonsensical tax-defier-scheme-related statements to the IRS, including that her social security number was her “corporate fiction’s” social security number, that her family’s business was a foreign trust of which she was the trustee, and that there is no such thing as money.

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

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

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

Used Car Salesman Sentenced on Tax Charges

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

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

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

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

Three Residents Sentenced for Tax Fraud and Obstruction of Justice

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

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

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

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

Former Securities Broker Sentenced For Tax Evasion

Steven Staltare, of New Port Richey, was sentenced to 37 months in prison and ordered restitution of $1,689,248 to the IRS. Staltare pleaded guilty to tax evasion on Dec. 16, 2014. Staltare was a securities broker and evaded paying taxes on income that he had earned during tax years 1999 through 2009, instead, he enjoyed a lavish lifestyle and diverted money from his business for gambling and personal expenses.

Former Nebraska Man Sentenced for Failing to File Tax Returns
On Aug. 25, 2015, in Omaha, Nebraska, Chet Lee West, of Nebo, North Carolina, was sentenced to 51 months in prison, three years of supervised release and ordered to pay $439,515 in restitution. From 2007 through 2009, West earned taxable income of approximately $272,224 while living and working in Omaha. From that income West had a tax due and owing of approximately $52,824. West willfully evaded his personal income taxes by failing to file federal individual income tax returns for tax years 2007 through 2009. After being informed by the IRS that he was required to file federal individual income tax returns, West continued to submit information to his employer in an attempt to avoid the withholding of any employment taxes from his pay, including numerous letters and purported affidavits stating his position that he was not subject to taxation on his income. Between 2007 through 2009, West deposited personal income into bank accounts opened in the names of companies he created in an effort to hide and conceal his income from the IRS. West had not filed federal individual income tax returns since at least the 2000 taxable year.

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

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

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

Businessman Sentenced for Income Tax Evasion

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

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

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

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

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

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

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

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

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

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