Restaurant Owner Pleads Guilty to Criminal Tax Fraud – He should have hired SELIG & Associates

On August 21^st 2020, the New York State Department of Taxation and Finance announced that the owner of a New York BBQ Restaurant pleaded guilty to grand larceny and criminal tax fraud charges.  Between September 1, 2013 and May 31, 2017 he collected $199,491 in sales tax from his customers and failed to file sales tax returns and ultimately remit that money, as required by law, to New York State. “Sales tax dollars fund vital public services. When that money is diverted instead for personal gain, it hurts the communities that need it most — especially in the midst of a global pandemic,” said New York State Commissioner of Taxation and Finance Mike Schmidt. “We will continue to work with all levels of law enforcement to hold those accountable for tax crimes against New Yorkers”.  On September 18^th 2020, David Selig [of Selig & Associates] said that had he been representing the BBQ Restaurant, the matter may have been resolved differently. 

Jury Finds Another Dentist Guilty of Tax Evasion

Directed Patients to Pay in Cash

A federal jury convicted a dentist today of four counts of tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Scott C. Blader.

According to evidence presented at trial, Frederick G. Kriemelmeyer, 70, operated a dental practice In 2007, Kriemelmeyer was ordered by the U.S. District Court to pay $135,337 to the Internal Revenue Service (IRS) for unpaid income taxes. By 2012, the IRS had assessed Kriemelmeyer for more than $450,000 in taxes, interest, and penalties. Evidence presented at the trial showed Kriemelmeyer took a number of actions to evade paying the taxes he owed, from at least 2013 through 2015, Kriemelmeyer did not file tax returns reporting the income from his dental practice, directed his patients to pay him in cash or by check with blank payee lines, and paid his business and personal expenses with third-party checks and cash.

U.S. District Judge William M. Conley has set sentencing for May 19, 2020. At sentencing, Kriemelmeyer faces a statutory maximum sentence of five years in prison for each count of tax evasion. He also faces a period of supervised release, monetary penalties, and restitution.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Blader commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Eric C. Schmale of the Tax Division and Assistant U.S. Attorney Elizabeth Altman, who prosecuted the case.

(212) 974-3435

Aggressive NYC Tax Advocates Specializing in Income, Sales and Payroll Taxes. We negotiate excellent Payment Plans, Release of Wage Garnishment, Bank Levy, Offers in Compromise, Audits, Suspended License and all other Federal, State and New York City Tax Matters. Same day and Emergency Appointments. Expedited Service. Missing Tax Returns prepared and filed within 48 hours. 

Free Consultation Discuss your tax problem with an experienced Federal Tax Practitioner, CPCU and Attorney. Legally privileged consultations are available Monday through Friday in our conveniently located New York City office. 

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

New Jersey Man Convicted of Promoting Tax Fraud Scheme – Better call SELIG & Associates "oops used your head"

A federal jury sitting in Camden, New Jersey, convicted an Atlantic City man of conspiring to defraud the United States, filing false claims, and obstructing the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

According to evidence presented at trial, between 2015 and 2016, Kenneth Crawford Jr., and his co-conspirators promoted and sold a “mortgage recovery” tax fraud scheme in which they obtained for their clients fraudulent refunds from the Internal Revenue Service (IRS).  Crawford promoted the scheme to individuals who were facing foreclosure or behind on their mortgage payments, and represented to them that they could extinguish their outstanding mortgage debts by filing tax forms with the IRS.  As part of the scheme, Crawford and his co-conspirators caused clients to file forms that fraudulently claimed that a substantial amount of taxes had already been withheld from them. These false withholding claims caused the IRS to authorize significant refunds to which the clients were not entitled. As a result of Crawford’s scheme, more than $2.5 million in fraudulent refunds were sought from the IRS, of which the IRS paid out more than $1.3 million.  Crawford charged his clients a fee of roughly 25 percent of the refund obtained.

When the IRS discovered the fraud and attempted to recover the previously issued refunds, Crawford provided clients with false and fraudulent documents to send to the IRS, directed clients to conceal from the IRS his role in filing the false returns, and advised clients to remove funds from bank accounts in their names in order to thwart IRS collection efforts.

U.S. District Judge Robert B. Kugler scheduled sentencing for March 20, 2020. As a result of his conviction, Crawford faces a statutory maximum sentence of five years in prison for the conspiracy charge, five years in prison for each false claim count, and three years in prison for obstructing the internal revenue laws.  He also faces a period of supervised release, restitution, and monetary penalties. 

Crawford is currently detained pending sentencing as a result of his conviction, and for previously violating his conditions of pretrial release.

Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Sean Green and Assistant Chief John Kane, who are prosecuting the case.  He also thanked the United States Attorney’s Office for the District of New Jersey for its assistance and support during the investigation and prosecution of this case.

Tax Representation, Consulting and Tax Planning

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Free Consultation: Federal Tax Practitioner, CPCU and Attorney. We provide our Clients with successful Federal and State Tax Representation. Legally privileged consultations are available Tuesday through Friday in our New York City offices. 

Tax Representation: Specializing in unpaid Income, Sales and Payroll taxes. We negotiate excellent Payment Plans, Audits, Offers in Compromise, and all other tax matters. Proven results. Practicing before the Internal Revenue Service and the New York State Department of Taxation and Finance. Speak with us directly (212) 974-3435 or contact us online.

Tax Advisors: Our Consulting and strategic Tax Planning services are designed to help Business Owners protect their assets and significantly reduce their income tax liability in 2020. 

W/C & NYSIF Assessments: We help Construction Companies with Workers Compensation Audits and NYSIF Premium Assessment Disputes, including Employee Misclassification, Unreported Income, Application Fraud, Experience, Rating and all other Workers Comp violations. Call us directly (212) 974-3435 to schedule a Free Consultation.

Expedited Service: Unfiled Tax Returns? We can have your missing Tax Returns prepared and filed within 48 hours, guaranteed. Do you need to establish a new Corporation, LLC or S-Corp? We can help. All States. Contact us directly for immediate assistance. 

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Sales Tax Sting in Brooklyn - Solving NYS Sales Tax Problems - Selig and Associates

The New York State Department of Taxation and Finance announced it seized more than 336 cartons of untaxed cigarettes following two store inspections in Brooklyn. Tax Department investigators conducted routine inspections in Brooklyn at S&O Star Deli Corp, 6602 Bay Parkway, and A&B Food Corp, 7402 17th Avenue, on Tuesday, December 3. They found a combined total of 336.8 cartons of cigarettes bearing counterfeit New York State and New York City tax stamps, as well as ones with stamps from Connecticut, Georgia, and Virginia. “Business owners who evade the tax on cigarette and tobacco products or other sales put honest merchants at a competitive disadvantage and deprive their communities of revenue used to fund vital services,” said New York State Commissioner of Taxation and Finance Michael Schmidt. “We’ll continue to conduct these inspections and work with our law enforcement partners to ensure a level playing field for all.” The owner of A&B Food Corp, Abul Islam, 59, was arrested and charged with multiple felonies, including possession of a forged instrument, attempt to evade cigarette tax on 10,000 or more cigarettes, and possession for sale of counterfeit-stamped cigarettes. More than 96 cartons of illicit cigarettes were seized from his store. The owner of S&O Star Deli Corp, Salah Aizah, 53, was arrested and charged with multiple felonies, including possession of a forged instrument, possession for sale of 30,000 or more cigarettes, and possession for sale of counterfeit-stamped cigarettes. More than 240 cartons of cigarettes with counterfeit and out-of-state tax stamps were seized from the store. In addition to the criminal charges, the defendants each face fines of up to $600 per carton seized, which would total more than $144,000 for Salah Aizah and more than $57,600 for Abdul Islam. The Kings County District Attorney’s Office is prosecuting the cases. A criminal complaint is only an accusation; the defendant is presumed innocent until proven guilty.

Tax Representation, Consulting and Strategic Tax Planning

(212) 974-3435

Free Consultation: Federal Tax Practitioner, CPCU and Attorney. We provide our Clients with successful Tax Representation, Consulting and Strategic Tax Planning Services and can help you significantly reduce your income tax liability in 2020. Legally privileged consultations are available Tuesday through Friday. 

Tax Representation: Specializing in unpaid Income, Sales and Payroll taxes. We negotiate excellent Payment Plans, Audits, Offers in Compromise, and all other tax matters. Proven results. Practicing before the Internal Revenue Service and the New York State Department of Taxation and Finance. Speak with us directly (212) 974-3435 or contact us online.

W/C & NYSIF Assessments: We help Construction Companies and Business Owners with Workers Compensation Audits and NYSIF Premium Assessment Disputes, including Employee Misclassification, Unreported Income, Application Fraud, Experience, Rating and all other Workers Comp violations. 

Expedited Service: Unfiled Tax Returns? We can have your missing Tax Returns prepared and filed within 48 hours, guaranteed. Do you need a new Corporation, LLC or S-Corp? Contact us directly for immediate help and assistance. 

(212) 974-3435

UNPAID SALES TAXES? UNDERSTANDING CRIMINAL TAX FRAUD & THE TAX FRAUD ACT

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 fraud  If you committed tax fraud - then you'd better call Selig & Associates

1. Fail to make, render or file any required report or return; or
2. File a tax return or any other required document where you know that the document contains materially false or fraudulent information; or
3. 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
4. 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
5. Fail to remit taxes collected on behalf of the State; or
6. Fail to collect certain taxes such as sales taxes; or
7. Intentionally evade any tax or failing to pay a tax; or
8. Issue fraudulent exemption certificate or any document evidencing a claim that taxes do not apply to a particular transaction.

Selig & Associates

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

212-974-3435

We successfully solve IRS and New York State Tax problems, including suspended Drivers Licenses and Passports. Specializing in large dollar Payroll, Sales and Income Tax Representation for Individuals, Professional Practices and Businesses. 

We negotiate excellent Payment Plans, Audits, Offers in Compromise, Payroll & Trust Fund Recovery Penalties, and most other tax issues. Do you have Unfiled Tax Returns? We can have them prepared and filed for you within 48 hours, guaranteed. Same day and emergency appointments are available Monday through Friday in our New York City office. 

To schedule a Free and Legally Privileged Consultation with a Federal Tax Practitioner and Attorney contact us Online

or Call (212) 974-3435

Company President Sentenced for Income Tax Evasion (Not filing Tax Returns was his undoing)

The President of a successful transportation company was recently sentenced to 70 months in prison, three years of supervised release, and ordered to pay $269,978 in restitution. The Crestfallen Corporate Commando tried to conceal his crimes by not filing tax returns and by depositing money into different bank accounts and other tax related shenanigans. 

Selig & Associates 

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

212-974-3435 

We successfully solve IRS and New York State Tax problems, including suspended Drivers Licenses and Passports. Specializing in large dollar Payroll, Sales and Income Tax Representation for Individuals, Professional Practices and Businesses.  

We negotiate excellent Payment Plans, Audits, Offers in Compromise, Payroll & Trust Fund Recovery Penalties, and most other tax issues. Do you have Unfiled Tax Returns? We can have them prepared and filed for you within 48 hours, guaranteed. Same day and emergency appointments are available Monday through Friday in our New York City office.  

To schedule a Free and Legally Privileged Consultation with a Federal Tax Practitioner and Attorney contact us Online

or Call (212) 974-3435

NY Business Owner Accused of Forging Invoices & Pocketing Sales Taxes

Facing Multiply Felonies Including Criminal Tax Fraud

(you'd better call SELIG & Associates)

On August 8^th 2019 the New York State Department of Taxation and Finance announced felony charges against Virginia Reed, owner of PC Innovations, Inc. She’s accused of failing to pay more than $96,000 in sales tax collected from her customers and falsifying business records.

“Businesses that disregard their tax obligations deprive the communities where they operate of revenue for vital services and put similar businesses at a competitive disadvantage,” said New York State Commissioner of Taxation and Finance Michael Schmidt. “Profiting at the expense of your community isn’t just unfair, it’s criminal, and those responsible must be held accountable.”

Tax Department investigators allege Reed, 61, failed to pay to the state at least $96,311 in sales tax collected from customers between February 2013 and September 2016. She’s also accused of filing multiple sales tax returns during the same period that significantly understated the amount of sales tax collected from customers. Investigators uncovered many invoices that were allegedly altered to hide the true amount of sales tax collected. Reed  is charged with multiple felonies, including criminal tax fraud, grand larceny, and offering a false instrument for filing. Reed was arraigned on Wednesday, July 31, and is scheduled to reappear on August 26.

A criminal complaint is only an accusation; the defendant is presumed innocent until proven guilty.

Selig & Associates

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

We successfully solve IRS and New York State Tax problems, including suspended Drivers Licenses and Passports. Specializing in large dollar Payroll, Sales and Income Tax Representation for Individuals, Professional Practices and Businesses. 

We negotiate excellent Payment Plans, Audits, Offers in Compromise, Payroll & Trust Fund Recovery Penalties, and most other tax issues. Do you have Unfiled Tax Returns? We can have them prepared and filed for you within 48 hours, guaranteed. Same day and emergency appointments are available Monday through Friday in our New York City office. 

To schedule a Free and Legally Privileged Consultation with a Federal Tax Practitioner and Attorney contact us Online

or Call (212) 974-3435