Inside This Issue....
FOUR IN CALIFORNIA INDICTED
FOR TAX REFUND SCHEME
Four people from the Fresno, Calif.,
area have been indicted for allegedly creating a scheme to collect
false tax refund checks.
Jaime Sierra Torres, 32; Virginia Ramos, 47; Ramos' sister, Oralia
Barajas de Torres, 50; and Barajas de Torres' son, Jose Barajas
Torres, 27, allegedly filed income tax returns that listed employers
who did not employ the alleged wage earner and then claimed wages
that would make the wage earner eligible for a tax refund.
The four defendants used their home addresses and post office boxes
to receive the fraudulent refund checks, which the defendants then
cashed at various check-cashing establishments throughout California's
Central Valley. If convicted, the defendants each face up to 10
years in prison and a fine of up to $250,000.
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Tax Shelter Operator Convicted
A South Florida man accused of smuggling into the United States
ozone-depleting refrigerant chemicals known as Freon and hiding
the income in tax shelters has been convicted of tax evasion and
Marc M. Harris was found guilty on 14 counts in all. Trial evidence
showed that Harris conspired to evade federal excise taxes on the
sale of Freon to customers in South Florida by filing phony paperwork
to hide sales of illegally imported Freon. Harris then used shell
corporations and bank accounts to hide the income, resulting in
a tax loss of approximately $6.2 million between January 1993 and
June 1994. In some cases, Harris laundered money through wire transfers
to Panamanian corporations and bank accounts.
Harris faces up to five years in prison for each of the two tax
charges and up to 20 years in prison for each of the 12 money laundering
Restaurateurs Admit Tax Evasion
The former principals and shareholders of two New Jersey restaurants
called Company B's admitted in court to attempting to evade $835,800
in payroll and sales taxes from 1993 to 2000.
Christopher T. Bruton, 44, of Suffern, N.Y., and Leon Badick,
40, of Congers, NY, underreported the total salary and wages paid
to the employees by approximately $2.8 million in order to evade
approximately $477,407 in payroll taxes, according to information
filed with the court. The restaurateurs also concealed $358,397
in collected sales taxes.
Each faces up to five years in prison and a $250,000 fine.
IRS QUESTION CORNER...
I have my own business, and I do my own taxes. It's a one-man
operation, but I make a good living. I also like to have complete
control over the business. That's why I do my own taxes, I guess.
Wasn't that a mistake! I got some advice online, read a few books,
and made a number of write-offs on last year's return. That resulted
in an IRS audit. Now the government says I owe $25,000 in back
taxes. I can't pay that tomorrow. What can I do?
You're not the first person I've talked to who has suffered this
fate. Small-business owners who do their own taxes often research
write-offs to reduce the amount owed. They sometimes get bad information
and often become overzealous and write off expenses that aren't
allowed by law. That can raise red flags and result in audits,
such as the one you received.
From your question, it sounds like you do have the financial resources
to pay the $25,000 tax bill, even though you do not have the immediate
cash available. For this reason, your best action would be to
consult with a qualified tax professional about hammering out
an agreement with the IRS that would allow you to make installments.
IRS agents realize that few people have large sums of liquid capital
available. How many people can cut a check for $25,000 on command?
Not many. That's why the IRS provides installment plans. For qualifying
taxpayers, the IRS allows debtors to pay a small monthly amount
over a set period of time. It's similar to the way you pay your
mortgage or car loan.
Keep in mind, however, that the $25,000 figure may not be accurate.
You may actually owe much less. A qualified tax professional will
analyze your previous tax return, expenses and receipts to find
the exact amount owed. This could be thousands of dollars below
what you currently think you owe. Following that process, your
tax professional can discuss an installment plan with the IRS.
I solve problems such as yours every day. That's what I do: I'm
an IRS Problem Solver. I encourage you to call our office at 253-752-9522
or send me an E-mail at Firm@DNelsonCPAs.com for
a free, no-risk consultation. There IS a solution for your IRS
problem. Call us today!
|David S. Nelson,
NELSON & COMPANY, P.S.
Certified Public Accountants
Tacoma Mall Office Building
4301 South Pine Street, Suite #241
Tacoma, Washington 98409-7205