JANUARY, 2013

Message from Nelson & Company, P.S., CPAs



Filing Season Delayed
- Be patient and avoid costly mistakes

The IRS began accepting and processing most individual tax returns only recently after updating forms and completing programming, and testing of its processing systems to reflect the American Taxpayer Relief Act (ATRA) that Congress enacted on Jan. 2.

While many are able to file now, the IRS is continuing to update its systems for other filers, and some may have to wait until late February or early March. Be patient – you don’t want to miss valuable deductions and credits. A full list of the affected forms is available at IRS.gov.

David S. Nelson, CPA, CTRS
NELSON & COMPANY, P.S.
Certified Public Accountants




IRS Times & Inquirer

Inside This Issue...

Rapper Fat Joe Pleads Guilty to Tax Charge
Firefighter Faces 30 Years in Prison for Federal Tax Charges




Rapper Fat Joe Pleads Guilty to Tax Charge

Rapper Fat Joe, whose real name is Joseph Cartagena, pleaded guilty to two counts of failing to file tax returns with the IRS, admitting that he didn’t file the returns despite having earned $3.7 million in income.

Cartagena, 42, of Miami Beach, Fla., failed to file a tax return for the years 2007 to 2010. During that time, he received income for his musical performances as well as royalties on the sales of his music.

The musician admitted that he received gross income in excess of $1.3 million in 2007, in excess of $1.4 million in 2008, in excess of $320,000 in 2009, and in excess of $680,000 in 2010. The total tax loss to the government was $718,038.

Cartagena faces up to two years in prison and a fine of up to $200,000. He has agreed to file tax returns and pay all taxes and penalties owed.




Firefighter Faces 30 Years in Prison for Federal Tax Charges

The former mayor of Toms River, N.J., has pleaded guilty to tax evasion.

Carmine C. Inteso Jr., who was arrested in July 2012 after returning from Afghanistan, was charged with a six-count indictment.

Inteso allegedly took a job in Afghanistan after learning he was the target of the tax investigation, and after returning to the United States, he was taken into custody.

According to court documents, from 2002 through 2007, Inteso held the positions of Township Committee member, mayor, deputy mayor, and councilman for the Township of Toms River.

Beginning in 2005 and continuing through 2008, Inteso accepted hundreds of thousands of dollars in payments from Francis X. Gartland, an insurance broker whose companies provided services for New Jersey to Toms River. Inteso directed Gartland to make the payments to a company Inteso controlled.

Inteso used the funds to pay for his personal expenses and withdrew significant amounts of cash. Despite receiving approximately $291,000 in income from the insurance broker during calendar years 2006, 2007 and 2008, Inteso failed to file personal income taxes for those years.

He faces up to five years in prison and a fine of up to $250,000.




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Nelson & Company, P.S., CPAs Since 1979

====NOTICE REQUIRED BY IRS====
Circular 230 Disclosure:
To ensure compliance with requirements imposed by the IRS, we inform you that (i) any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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