Owner of Medical Laboratory Sentenced to Prison for Filing False Tax Returns (He should have hired SELIG & Associates)

On September 29, 2020 an unhappy business owner was sentenced to 40 months (3 years, 4 months) in prison a/k/a (the "SLAMMER") for filing false tax returns, announced Acting United States Attorney Alexander C. Van Hook and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. According to documents and information provided to the court, the Defendant was part owner of a medical laboratory. From 2011 through 2015, he filed false tax returns that underreported gross receipts earned from his business. The Defendant concealed from his tax return preparers at least two bank accounts reflecting income earned, and falsely characterized business receipts as non-taxable loans. As a result of these actions, he caused a tax loss of more than $1.9 million to the Internal Revenue Service (IRS). In addition to the term of imprisonment, United States District Judge S. Maurice Hicks, Jr. ordered him to one year of supervised release and to pay restitution to the IRS in the amount of $1,904,477.

Are you in trouble with the IRS?

New York City Tax Advocates

 

If your business was adversely affected by COVID-19

you need to take immediate action

Selig & Associates zealously represents individuals, businesses and entrepreneurs before the Internal Revenue Service ("IRS") and the New York State Department of Taxation and Finance. *We specialize in sales tax audits, unpaid income taxes; unpaid sales taxes [and] payroll tax problems. Negotiating reasonable tax settlements and affordable repayment plans for small business owners since 2006. Consultations are available in person or by telephone and emergency appointments are always available. To speak with a Federal Tax Practitioner, CPCU and Attorney call (212) 974-3435 or contact us Online.

Insurance Audits & Premium Disputes

 

If your business is having difficulty with its insurance carrier

you need to take immediate action

 

Selig & Associates. Specializing in Workers Comp, NYSIF and General Liability audit representation, including: risk management, loss reduction and insurance placement, large dollar premium assessments, employee misclassification, unreported income, experience and other rating issues. *Most premium disputes are settled and resolved within 60 days of our being retained. Consultations are available in person or by telephone and emergency appointments are always available. Call (212) 974-3435 or contact us Online.

Attorney Sentenced to Prison for Obstructing the IRS

 

Provided IRS with False Information and Materials to Conceal Client’s Tax Fraud

An attorney was recently sentenced to 18 months in prison announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney David DeVillers for the Southern District. According to documents and information provided to the court, from 2007 until his client died, the attorney advised and assisted his client in legal matters relating to the operation of his medical clinics. At the time, the attorney specialized in tax law. Around 2010, the IRS audited the doctor’s medical entities. In response to an IRS revenue officer’s request for documentation supporting the entities’ claimed clinical equipment depreciation deductions, the attorney provided false “bills of sale” purporting to support the deductions, but which in fact falsely inflated the value of the equipment. At the same time that the attorney provided these inflated values to the IRS, he provided contradictory valuation information to third parties. In 2011, the lawyer filed petitions in U.S. Tax Court challenging the IRS’s determination that some of the audited entities owed additional taxes. The case was ultimately settled with an agreement that approximately $608,583 was due. When the IRS revenue officer attempted to collect the settlement amount in 2014, the attorney  frustrated the IRS’s collection efforts by falsely representing that the relevant entities were defunct with no assets. In all, the lawyer caused a tax loss of $513,960 to the United States. Ultimately, he pled guilty to corruptly endeavoring to impede and obstruct the IRS and the Supreme Court suspended license to practice law.  As for the client, he pled guilty to drug, tax, and fraud charges, but died before sentencing in that case. In addition to the term of imprisonment, U.S. District Judge Michael H. Watson ordered the former lawyer to serve 3 years of supervised release. Restitution to the government has already been paid using funds seized from the deceased client/doctor. 

 

Are you in trouble with the IRS? 

Selig & Associates zealously represents individuals, businesses and entrepreneurs before the Internal Revenue Service and the New York State Department of Taxation and Finance. Specializing in sales tax audit representation and unpaid income, sales and payroll taxes. We negotiate reasonable tax settlements and affordable repayment plans. Consultations are available in person or by telephone and emergency appointments are always available. To speak with a Federal Tax Practitioner, CPCU and Attorney call (212) 974-3435 or contact us Online.

Insurance Audits & Premium Disputes

 

Workers Comp. NYSIF and General Liability representation includes: insurance and risk management services, large dollar premium assessments, employee misclassification, unreported income, experience and other rating issues. *Most premium disputes are settled and resolved within 60 days of our being retained. Consultations are available in person or by telephone and emergency appointments are always available. Call (212) 974-3435 directly or contact us Online.

President of Consulting Firm Pleads Guilty to Employment Tax Fraud (He should have hired SELIG & Associates)

Did Not Pay Over to the IRS Nearly $1 Million in Employment Taxes

On September 3, 2020 a businessman (who didn’t hire Selig & Associates) pleaded guilty to failing to collect, truthfully account for, and pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District. According to documents and information provided to the court, the president and director of a technology consulting services firm in was responsible for collecting, truthfully accounting for, and paying over to the IRS Social Security, Medicare, and income taxes withheld from his employees’ wages. Beginning as early as 2007 and through 2015, he did not pay over more than $980,000 in employment taxes to the IRS. During this time, he entered into three separate installment agreements with the IRS committing to make the payments, but defaulted each time. U.S. District Judge David Novak scheduled the sentencing for Feb. 10, 2021. At sentencing, he faces a maximum sentence of five years in prison as well as a period of supervised release, restitution, and monetary penalties. Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Terwilliger thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief Todd Ellinwood and Trial Attorney William Montague of the Tax Division and Assistant U.S. Attorney David McGuire, who are prosecuting the case.

New York City Tax Advocates   

 

Civil and criminal tax representation. Selig & Associates zealously represents individuals, businesses and entrepreneurs before the Internal Revenue Service and the New York State Department of Taxation and Finance. Specializing in unpaid income, sales and payroll taxes. We negotiate reasonable tax settlements and affordable repayment plans. Consultations are available in person or by telephone and emergency appointments are always available. To speak with a Federal Tax Practitioner, CPCU and Attorney call (212) 974-3435 or contact us Online.

 

Owner of Long Island Diner Hires Someone Else [then] Pleads Guilty to Not Paying Employment Tax (He should have hired SELIG & Associates)

 

Some Diner Employees Paid Cash to Conceal the Full Payroll from the IRS. On September 16, 2020 a Long Island diner owner pleaded guilty to failing to pay employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.According to court documents and statements made in court, Nikolaos Avgoustidis, the owner and operator of the Rocky Point Town House Diner, did not pay employment taxes for all of the diner’s employees. From 2011 to 2013, Avgoustidis paid certain employees in cash, without reporting it to the IRS, and further, without paying the social security and Medicare taxes that must be withheld from the employees’ wages. In total, Avgoustidis caused a tax loss to the IRS of approximately $130,000.U.S. District Judge Gary R. Brown scheduled the sentencing for Jan. 15, 2021. At sentencing, Avgoustidis faces a maximum sentence of 5 years. He also faces a period of supervised release, restitution, and monetary penalties.Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sean Green and Mark Kotila of the Tax Division, who are prosecuting the case.

New York City Tax Advocates   

 

Civil and criminal tax representation. Selig & Associates zealously represents individuals, businesses and entrepreneurs before the Internal Revenue Service and the New York State Department of Taxation and Finance. Specializing in unpaid income, sales and payroll taxes. We negotiate reasonable tax settlements and affordable repayment plans. Consultations are available in person or by telephone and emergency appointments are always available. To speak with a Federal Tax Practitioner, CPCU and Attorney call (212) 974-3435 or contact us Online.

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. 

Married Couple Sentenced to 33 Months Prison for Falsifying Tax Returns

A business owner and his wife have been sentenced for federal tax violations in the Eastern District, announced the U.S. Attorney.  In February 2020, Dick Brocato, Jr., 68, and his wife, Judith L. Brocato, 65, were convicted by a jury of conspiracy to defraud the United States for purposes of impeding the government functions of the Internal Revenue Service (IRS) in the collection of income tax and six counts of making and submitting false tax returns on both their personal and business for 2012-2014.  The Brocatos were each sentenced to 33 months in federal prison by U.S. District Judge Marcia Crone.  They were also ordered to pay restitution in the amount of $617,762 to the IRS and fines of $15,000 each.

According to information presented in court, the Brocatos owned a lawn service company, which was operated as an S Corporation for tax purposes.  The Brocatos were the sole shareholders of the company, and Judith Brocato served as corporate president, maintaining the books and records of the corporation, and signing the corporate tax returns in that capacity.  The Brocatos conspired to defraud the United States for the purpose of impeding, impairing, and obstructing, the lawful government functions of the Internal Revenue Service (IRS) in the ascertainment, computation, assessment, and collection of federal income and other taxes for years 2012, 2013, and 2014. 

As part of that conspiracy, they filed false corporate and personal income tax returns for years 2012, 2013, and 2014.  To facilitate the scheme, the Brocatos cashed numerous checks from customers instead of depositing them into the company accounts.  They then underreported the income by failing to report the cash income amount on the various tax returns. According to the indictment, the underreported income amounted to $503,281 in 2012, $687,534 in 2013, and $513,498 in 2014. A federal grand jury returned an indictment on Sep. 4, 2019 charging Dick and Judith Brocato with tax violations.

Civil & Criminal Tax Representation

 

Selig & Associates represents individuals, businesses and entrepreneurs before the Internal Revenue Service and New York State Department of Taxation and Finance. Specializing in difficult income, sales and payroll tax issues including: unpaid taxes, failure to file tax returns and other tax crimes. We negotiate reasonable tax settlements, offers in compromise, penalty abatements and installment agreements. We offer prospective clients a free legally privileged consultation, and emergency appointments are always available. Discuss your case with a Federal Tax Practitioner, CPCU and Attorney today (212) 974-3435 or contact us Online.

The IRS’s Heavy Hand Just Got Heavier

The Internal Revenue Service announced that James Lee will become the new chief of IRS Criminal Investigation (CI) on October 1 2020. Lee, currently CI's deputy chief and a 25-year veteran of the organization, will succeed current Chief Don Fort, who announced last month he will retire on September 30 2020. "Jim brings a quarter-century of Criminal Investigation management and field experience into this key enforcement role," said IRS Commissioner Chuck Rettig. "Jim is highly respected throughout the IRS and will continue long-standing working relationships with the civil enforcement functions of the IRS as well as with the Department of Justice's Tax Division and tax prosecutors throughout the country. He understands the need to support compliant taxpayers by maintaining a strong, robust enforcement effort focused on those who are compliance challenged." As Chief, CI, Lee will lead the IRS's criminal enforcement efforts to investigate tax code violations and other related financial crimes such as money laundering, public corruption, cybercrimes, identity theft, narcotics and terrorist-financing. Prior to serving as Deputy Chief of CI, he served as the Director of Field Operations, Northern Area where he oversaw CI enforcement programs in the Boston, New Jersey, New York, Ohio and Philadelphia Field Offices. He also previously served in executive roles as the Director of Field Operations, Southern Area and the Director, Strategy. Lee began his IRS CI career in 1995 as a special agent in Detroit. He moved into the CI leadership ranks and has held positions of increasing responsibility throughout his career including Supervisory Special Agent in the New Orleans Field Office; Headquarters Senior Analyst in the International and Financial Crimes Sections; Assistant Special Agent in Charge within the Boston Field Office; and Special Agent in Charge of the New Orleans Field Office and later the Chicago Field Office.

 

Experienced Tax Advocates  

 

Selig & Associates provides New Yorkers with the most aggressive tax representation allowed by law. Successfully defending Individuals and Businesses before the Internal Revenue Service and New York State Department of Taxation and Finance since 2006. When you’re in trouble with the IRS, Selig & Associates is your best line of defense. Free telephone consultation with licensed Tax Accountant and Attorney. For more information call (212) 974-3435 or contact us Online. 

 

Free Consultation 

 

Selig & Associates consistently solves the most challenging tax problems, including unpaid income, sales and payroll withholding issues. We negotiate successful tax settlements, offers in compromise, penalty abatements and affordable payment plans. Free telephone consultation with licensed Tax Accountant and Attorney. For more information call (212) 974-3435 or contact us Online. 

 

Immediate Action

 

Selig & Associates helps New Yorkers avoid criminal prosecution by proactively addressing tax problems. For example, we can prepare and file up to 10 years of missing Federal and State tax returns within 48 hours of being retained guaranteed. Results you can count on. Free telephone consultation with licensed Tax Accountant and Attorney. For more information call (212) 974-3435 or contact us Online.