Westchester County Man Pleads Guilty to Felony Criminal Tax Fraud (he should have hired SELIG & Associates)

I’m an alligator

The New York State Department of Taxation and Finance announced that one of New York State’s top tax debtors, David Walsh, pleaded guilty to second-degree criminal tax fraud, a C-class felony, in Albany County Court on the 2nd day of October 2019. 

Walsh, 58, of 9 Elm Rock Road, Bronxville, filed his New York State personal income tax returns but failed to pay the tax due for 2010, 2011, and 2014. He will pay all penalties and interest, which currently totals $573,259, in addition to the more than $2.24 million he’s already paid back to New York State. 

Walsh and his wife Gia surrendered to Tax Department investigators on September 20, 2018, and were charged with felony counts of criminal tax fraud. “Those who evade taxes in New York State deprive our communities of support for vital services and increase the burden honest taxpayers who play by the rules,” said New York State Commissioner of Taxation and Finance Michael Schmidt. “As this case demonstrates, those who commit tax fraud will be held accountable for their crimes.” David Walsh is scheduled to be sentenced December 6 in Albany County Court. 

Our mission is to win every tax case with integrity and thrift

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We represent individuals, business-owners and their businesses before the Internal Revenue Service and the New York State Department of Taxation and Finance. Do you have unfiled tax returns? We can have them prepared and filed for you within 48 hours guaranteed.

We negotiate excellent payment plans and specialize in large-dollar sales and payroll tax controversies. Has your Drivers' License and Passport been suspended due to unpaid taxes? We can help. 

 

We represent construction companies and businesses with Workers Compensation Audits and NYSIF premium disputes, including employee misclassification, underreporting, failure to keep accurate payroll records, and other serious violations. 

Emergency appointments are available Monday through Friday in our conveniently located New York City office. To schedule a legally privileged consultation with a Federal Tax Practitioner, CPCU and Attorney call (212) 974-3435 or contact us through our Online Action Form. 

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Another Man Sentenced for Tax Evasion –

A shifty-eyed character with slicked back hair and a crooked grin was sentenced to 21 months in the slammer; ordered to pay the IRS a whopping $509,455 in restitution, and ordered to file corrected tax returns for tax years 2007 through 2011. And that isn’t all - the would be wise guy who wore designer clothing, enjoyed fine food, and frequented the hottest nightspots, evaded federal income taxes from 2007 through 2011. Falsifying expenses was his game, and as such, the bad news bear prepared and filed his own tax returns, created bogus business expenditures and deducted them from his Schedule C income. The truculent tax evader even had the temerity to provide the IRS with a false lease agreement and phony invoices.

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

Do it Yourself Tax Help

Don’t need an Accountant and Attorney to solve your Tax Problem? 

Introducing the $99.99 Self Help Solution 

for Do it Yourselfers

(for a limited time only) 

STEP 1

We will contact the IRS and find out exactly how much you owe. 

STEP 2

We will find out if all of your federal Tax Returns have been filed. If you’re not in compliance, we’ll obtain Wage and Income transcripts from the IRS and with this information, your missing tax returns can be prepared by the tax return preparer of your choice. 

STEP 3

We will tell you in writing how to best address your tax problem and we’ll provide you with the specific forms needed to get things done (the right tools for the right job).  

Selig & Associates

147 W. 35^th Street. Suite 1602

New York. NY 10001

(212) 974-3435

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. 

Call (212) 974-3435

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. 

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.  

For more information about our Tax and Insurance Claims settlement services or to schedule a FREE consultation, call (212) 974-3435 or contact us online. 

Understanding Tax Debt, the IRS & Suspended and/or Revoked Passports

If you have “seriously delinquent tax debts” ($52,000 or more) the IRS will notify the State Department and your Passport will be denied and/or revoked. FYI *paying your debt down will not reactivate your Passport. See: IRS Section 7345(b)(1). If your Passport has been suspended, or you are concerned that your Passport is about to be suspended, call David Selig directly at (212) 974-3435

Four Family Members and a very unhappy Businessmen Sentenced for Tax Fraud

Four family members and a businessmen were sentenced to prison for their participation in  a long-term, complex and concerted effort to avoid taxation. In October 2010, Chester A. Bitterman Jr. and his sons, Craig L. Bitterman, C. Grant Bitterman and Curtis L. Bitterman, were convicted of conspiracy to defraud the United States. Craig Bitterman was additionally convicted of obstruction of justice. Prior to sentencing, the defendants paid $437,000 in restitution to the IRS. The four were sentenced as follows: Chester A. Bitterman Jr. was sentenced to three years’ probation and ordered to pay a $5,000 fine; Craig L. Bitterman was sentenced to 36 months in prison and ordered to pay a $10,000 fine; C. Grant Bitterman was sentenced to 21 months in prison and ordered to pay a $7,500 fine; an Curtis L. Bitterman was sentenced to 21 months in prison and ordered to pay a $7,500 fine. From 1996 to 2005 the Bittermans owned and operated the Bitterman Scale Company. To conceal their income and assets from the IRS, the Bittermans used aliases, offshore bank accounts and a complex series of sham paper transactions to disguise income. The defendants transferred their personal and business assets to sham trusts purchased from the Commonwealth Trust Company, a tax protester organization that marketed trust products to clients for the purpose of avoiding federal income tax payment. The trusts were used to make it appear as though the defendants had little or no assets or income. In reality, the defendants retained complete access and control over their funds.

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. 

Selig recommends Attorney Eddie Marcowitz "The Marcowitz Law Firm is the BOMB!"

THE MARCOWITZ LAW FIRM GIVES BACK We here at the Marcowitz Law Firm are honored to represent America’s Heroes. We never lose sight of the tremendous sacrifice and effort our clients have made for our City and Country. Eddie has participated in many pro bono Campaigns over the years. After 9/11, Eddie was honored to be a part of “Trial Lawyers Care” which was created by The American Trial Lawyers Association to provide pro bono legal services to victims of the attacks. Furthermore, Eddie spearheaded one of the single largest pro bono efforts in history and helped recover over $280 Million Dollars for WTC Victims. In 2007, his pro bono success continued with his unprecedented victory against the FDNY Pension Board was chronicled in the New York Law Journal, The New York Daily News and The Chief-Leader. Today, the Firm continues to provide pro bono pension counseling to members of the FDNY. In fact, this past year he assisted in the reclassification of a WTC Cancer claim which had been denied and considered a losing battle by others in the field. Eddie would rather go down bloodied and battered than not fight at all. Additionally, Eddie and his Firm proudly sponsors several great charities and events each year which are important to us and our clients. These include St. Jude’s Children’s Hospital, Wounded Warriors, The Ray Pfeifer Annual Golf Outing, The NJFMBA Annual Cooked & Uncorked Event, The Marc Virag Foundation Annual Fishing Trip and the Millburn Fire Department Golf Classic to Benefit the Children of the Arthur C. Luf Children’s Burn Camp. 9/11 VICTIM COMPENSATION FUND REAUTHORIZATION UPDATE As we all know, the Special Master was forced to make drastic cuts to benefits this past February. Immediately thereafter, the Bi-Partisan Bill to Reauthorize the Victims Compensation Fund was introduced into both chambers of Congress. As of today, there are 237 Co-Sponsors of the Bill in the House and 33 in the Senate. The lobbyists are hopeful that they will have the bill out of the House with 300 Co-Sponsors by the end of June, get it passed in the Senate by Summer and possibly signed into law by October. BUT IS NOT GOING TO BE EASY. They need your help in keeping the pressure on those in Congress who have not yet come on board. If you have any family members who live out of the Tri State Area, please have them contact their representatives and demand that they support the “Never Forget the Heroes: Permanent Authorization of the September 11th Victim Compensation Fund Act (S 546 / HR 1327) . Forward this link to out of state family and friends. http://www.renew911health.org/take-action/take-action-contact-your-members-of-congress/ THE NYS CHILD VICTIM ACT IS NOT JUST FOR VICTIMS OF CLERGY ABUSE THE BOY SCOUTS, ROCKEFELLER UNIVERSITY, POLY PREP, YESHIVA AND ALL OTHER PUBLIC AND PRIVATE INSTITUTIONS ARE ALSO SUBJECT TO CLAIMS This law allows victims who were sexually abused when they were children to seek civil damages against their abusers until the age of 55. FURTHERMORE, AND MORE IMPORTANTLY, the new law has opened a WINDOW for anyone to bring a claim within a limited time frame even though they have passed the age of 55. That window will be between AUGUST 14, 2019 through AUGUST 14, 2020. SIMPLY PUT, IF YOU WERE THE VICTIM OF A SEXUAL ASSAULT IN NEW YORK, REGARDLESS OF HOW MUCH TIME HAS SINCE PASSED (OR DUE TO ANY INVOLVEMENT OR RELATION WITH A PRIVATE OR PUBLIC NEW YORK INSTITUTION) YOU NOW HAVE THE RIGHT TO FILE A CLAIM. If you are a survivor or sexual assault and would like a free consultation, please contact us today. All calls and claims are handled with the utmost confidentiality and discretion. The identities of victims will not be made matter of public record and are subject to Attorney-Client Privilege. HAVE A GREAT SPRING AND AS ALWAYS IF YOU HAVE ANY QUESTIONS ABOUT THESE ISSUES, OR ANY OTHER LEGAL ISSUES, FEEL FREE TO CALL US ANYTIME!

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Selig & Associates

It all adds up 

New York City Tax Accountant and Tax Attorney Consult with an experienced Tax Accountant and Tax Attorney today. 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 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 confidential 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. 

Commercial Insurance Consultant and Attorney We assist businesses, nightclubs, schools and religious institutions with their specialty insurance needs including: Active Shooter and Workplace Violence Insurance Protection; Cyber Insurance, Sexual Harassment and Employment Practices Liability Insurance. For more information call us directly at (212) 974-3435. 

Property Insurance Claims We settle large property insurance claims, including business interruption, burglary, fire, windstorm and water damage for top dollar. To discuss your insurance claim with a Public Adjuster and Attorney call (212) 974-3435. 

Risk Management Servicesincluding: Risk Analysis, Contract Review, Loss Prevention Recommendations, Non-Insurance Alternatives, Claims and Coverage Dispute Analysis. For immediate assistance call (212) 974-3435. 

Distributions of Stock and Securities of a Controlled Corporation (Understanding IRC Section 355)

26 CFR 1.355-3: Active Conduct of a Trade or Business.

Rev. Rul. 2019-09

This revenue ruling suspends Rev. Rul. 57-464, 1957-2 C.B. 244, and Rev. Rul. 57-492, 1957-2 C.B. 247, pending the completion of a study by the Department of the Treasury (Treasury Department) and the Internal Revenue Service (Service) regarding the active trade or business (ATB) requirement under sections 355(a)(1)(C) and (b) of the Internal Revenue Code. 

REVENUE RULINGS

In Rev. Rul. 57-464, the Service considered the section 355 qualification of a corporation’s separation of a manufacturing business from a group of real estate assets consisting of an old factory building used for storage and four other buildings: a duplex apartment building rented to employees of the corporation, a small office building rented to a single tenant, and two houses, one of which was occupied by a sister-in-law of the president of the corporation. The use of the old factory building for storage “was not in itself the active operation of a business as defined in the regulations.” The rental activities “produced only a nominal rental” and “negligible” net income, and the properties “were acquired either as an investment or as a convenience to employees of the manufacturing business.” The Service held that the separation did not satisfy the ATB requirement. 

In Rev. Rul. 57-492, a corporation engaged in refining, transporting, and marketing petroleum products began a separate operation to explore for and produce oil. The exploration and production operation incurred substantial expenditures but “did not include any income producing activity or any source of income” until less than five years preceding its separation from the primary refining, transportation, and marketing operation. The Service held that the exploration and production operation failed to qualify as an ATB because, “[b]efore oil was discovered in commercial quantities ..., the venture ... did not include any income producing activity or any source of income.” 

LAW

Section 355(a)(1) provides that, if certain requirements are met, a corporation may distribute stock and securities of a controlled corporation to its shareholders and security holders without recognition of gain or loss or income to the recipient shareholders or security holders. Among those requirements, both the distributing corporation and the controlled corporation must be engaged in an ATB immediately after the distribution. Sections 355(a)(1)(C) and (b), and §1.355-3(a)(1)(i). Each trade or business must have been actively conducted throughout the five-year period ending on the date of the distribution. Section 355(b)(2)(B) and §1.355-3(b)(3). 

Section 1.355-3(b)(2)(ii) describes a “trade or business” as “a specific group of activities [that] are being carried on by the corporation for the purpose of earning income or profit, and the activities included in such group include every operation that forms a part of, or a step in, the process of earning income or profit.” In particular, “[s]uch group of activities ordinarily must include the collection of income and the payment of expenses.” Section 1.355-3(b)(2)(ii). 

ANALYSIS

The Treasury Department and the Service are conducting a study to determine, for purposes of section 355, “whether a business can qualify as an ATB if entrepreneurial activities, as opposed to investment or other non-business activities, take place with the purpose of earning income in the future, but no income has yet been collected.” See IRS statement regarding the active trade or business requirement for section 355 distributions, dated September 25, 2018, available at http://www.irs.gov/newsroom/statements-from-office-of-the-chief-counsel. The ATB analysis underlying the holdings in Rev. Rul. 57-464 and Rev. Rul. 57-492 focuses, in significant part, on the lack of income generated by the activities under consideration. Consequently, these rulings could be interpreted as requiring income generation for a business to qualify as an ATB. 

Accordingly, Rev. Rul. 57-464 and Rev. Rul. 57-492 are suspended pending completion of the study. See IRM 32.2.2.8.1, para. 9 (Aug. 11, 2004) (providing that a revenue ruling can be suspended “only in rare situations to show that previously published guidance will not be applied pending some future action, such as ... the outcome of a Service study”).

EFFECT ON OTHER REVENUE RULINGS

Rev. Rul. 57-464 and Rev. Rul. 57-492 are suspended.

Free Consultation 

We Solve Tax Problems. Call (212) 974-3435 or contact us online. Meet with an experienced Federal Tax Practitioner and Attorney in our conveniently located New York City office. 

Restaurants 

We Specialize in Unpaid Sales Taxes, installment agreements, audit representation and all Department of Labor issues. *Ask us about Debt Restructuring, including settling judgments, renegotiating bank loans and merchant cash advances. For immediate assistance call (212) 974-3435 or contact us online. 

Contractors 

We Specialize in Payroll and Withholding Taxes, installment agreements, audit representation and Workers Compensation insurance audits. To schedule a free consultation call (212) 974-3435 or contact us online. 

Businesses 

We Settle and Restructure Business Debts, including judgments and most insurance claims. To meet with us personally call (212) 974-3435 or contact us online. 

 Count On Us. Guaranteed. 

✔    Same day and emergency appointments available.

✔    We negotiate excellent re-payment plans with IRS and State.

✔    Missing tax returns prepared and filed in 48 hours, guaranteed. 

How to Protect Yourself from Cyber Crime

Be wary of unsolicited emails and calls asking for personal information. Never share personal information, such as your Social Security number, in response to an unsolicited email or telephone call. If the email or call claims to be from a company with which you do business, call it first to confirm the contact is legitimate.

Secure your mobile devices. Apply software updates that patch known vulnerabilities as soon as they become available. Use security features built into your device such as a passcode, and use programs that encrypt data and remotely wipe contents if the device is lost or stolen.

Be careful with Wi-Fi hotspots. Public wireless hotspots are not secure, which means that anyone could potentially see what you are doing on your mobile device while you are connected. Limit what you do on public Wi-Fi and avoid logging into sensitive accounts.

Know your apps. Be sure to thoroughly review the details and specifications of an app before you download it. Review and understand the privacy policy of each mobile app. Be aware that the app may request access to your location and personal information.

Be cautious about the information you share on social media. Avoid posting your birthdate, telephone number, home address, or images that identify your job or hobbies. This information may often reveal answers to security questions used to reset passwords, making you a possible target of scammers looking to access your accounts and secured information.

Use strong passwords. Create unique passwords for all your accounts. Use 10 to 12 characters in a combination of letters (upper and lower case), numbers and symbols. Individuals should regularly change their passwords as well.

Change your security questions. Don't use the same security questions on multiple accounts. Be careful to select security questions for which only you know the answer. Make sure the answers cannot be guessed or found by searching social media or the internet.

Turn on two-step verification to access accounts. To enhance the security of your account, require your password and an extra security code to verify your identity whenever you sign-in to your accounts, where available.

Beware of phishing. Do not click on links, download files or open attachments in emails from unknown senders. It is best to open attachments only when you are expecting them and know what they contain, even if you know the sender. And be wary of calls or texts asking for your personal information.

Use automatic updates and back-up data. Make sure automatic updates are turned on for your software and that you back up all information.

Monitor your financial accounts. Review your bank, credit card, and account billing statements carefully to check for suspicious activity. Report any suspicious charges immediately to the responsible financial institution.

Check your credit report regularly. If you identify inaccurate, suspicious or unusual activity on your consumer credit report notify the consumer credit reporting agency and the affected financial entity immediately.

Consider placing a security freeze on your credit. New Yorkers can "freeze" their credit to prevent prospective creditors from accessing their credit file and opening accounts in their names. You can do so by contacting:

•                                      Experian: 1-888-397-3742

•                                      TransUnion: 1-800-680-7289

•                                      Equifax: 1-800-525-6285

Keep records. Keep all notes and records about the security breach in the event fraudulent activity arises later.

Free Consultation We Solve Tax and Insurance Problems. To speak with an experienced Federal Tax Practitioner and Attorney call (212) 974-3435 or contact us online. Don't delay another day. Meet with us personally in our conveniently located New York City office. 

Restaurants We specialize in unpaid sales taxes, installment agreements, audit representation and all Department of Labor issues. *Ask us about Debt Restructuring, including settling judgments, renegotiating bank loans and merchant cash advances ("MCA"). For immediate assistance call (212) 974-3435 or contact us online. 

Contractors We specialize in payroll and withholding taxes, installment agreements, audit representation and Workers Compensation insurance audits. To schedule a free consultation call (212) 974-3435 or contact us online. 

Businesses We settle and restructure business debts, including MCA's, judgments and most insurance claims. To meet with us personally call (212) 974-3435 or contact us online. 

 Count On Us. Guaranteed. 

✔    Same day and emergency appointments available.

✔    We negotiate excellent re-payment plans with IRS and State.

✔    Missing tax returns prepared and filed in 48 hours, guaranteed.