Inside This Issue....
14 MONTHS FOR TAX EVASION IN 'MIRACLE CARS' SCHEME
A Missouri woman was sentenced to 14
months in prison without the possibility of parole after she evaded
taxes on nearly $1 million earned from her role in the "Miracle
Corinne M. Conway, 63, of Higginsville, Mo., was also ordered
to pay $4.9 million in restitution. Additionally, she was forced
to relinquish any interest she or The Virtuous Women International
Ministry has in real estate assets.
Conway and a handful of others orchestrated a nationwide
scam that defrauded hundreds of victims of millions of dollars.
As part the scheme, which targeted churches and religious groups,
Conway told people that a man named John Bowers had left a multimillion-dollar
estate with a significant number of vehicles to be sold at bargain
prices as a reward for religious faith.
However, no such estate existed. Conway and others raised
more than $20 million from individuals throughout the United States
for the supposed purchase of 700 vehicles.
Copies of this and previous versions
of the Tax Bulletin are available on our web site:
NELSON & COMPANY, P.S.
CERTIFIED PUBLIC ACCOUNTANTS
253-752-9522 | 1-800-669-0137
Official, Wife Plead Guilty to Tax Charges
An Arizona immigration inspector and his wife
have pleaded guilty to an indictment that alleged they filed false
income tax returns that attempted to conceal their true income for
the years 1996 to 1998.
Jose K. Livanios, of Nogales, Ariz., pleaded guilty to a
felony charge of filing a false return for the year 1998. His wife,
Leticia, pleaded guilty to a misdemeanor charge of failing to provide
information for her 1998 return.
According to the plea, Jose Livanios knew when he claimed
$25,000 as farm income on his return that he had substantially more
income from his cattle business. In fact, he underreported his income
by about $45,066. Additionally, Livanios admitted that the total
underreported income from 1996 to 1998 was about $94,760.
Livanios faces up to three years in prison and a $250,000
fine. His wife faces up to one year in prison.
Man Receives Six Years for Tax Crimes
Mark W. May, a 43-year-old from Xenia, Ohio,
has been sentenced to six years in prison and ordered to pay $728,090
in restitution after being convicted of tax crimes.
May was the founder, president and owner of Maranatha Financial
Group Inc., a now-defunct financial planning service. From 1990
to 1996, May failed to file the company's payroll tax returns
and remit payroll taxes. In September, he was charged with four
counts of willfully failing to pay the IRS more than $500,000
in payroll taxes, as well as tax evasion for the years 1995 and
Trial evidence showed that May earned a $250,000 salary
while failing to pay taxes.
IRS QUESTION CORNER...
My tax debt has become so considerable that I know I need to do
something about it quickly. Thanks to a mixture of unexpected
high earnings in the late '90s and cashing out stocks before the
market finally dipped, I've amassed a tax debt of about $90,000.
Despite having earned a lot of money, I don't have much to show
for it. And I certainly don't have $90,000 in cash! Will I lose
No, the chances are slim that you will lose your home as a result
of this tax debt. But you are right: $90,000 is a considerable
debt and it is something you should take care of quickly.
Although I don't fully know your current financial and
employment situation, I would guess that your best bet is to file
an Offer in Compromise. Because the IRS has learned from years
of experience that chasing down taxpayers like you won't result
in paid debts, the tax-collecting agency allows you to make an
offer. Essentially, if you owe $90,000, the IRS may be willing
to accept a figure much lower than that in order to settle your
debt. For many clients, an Offer in Compromise results in having
to pay only pennies on the dollar.
The first step you should make is to consult with a qualified
tax professional. Provide him or her with your previous tax returns
and financial information. The tax professional will then analyze
your previous filings to come to the exact amount you owe the
IRS. If you still owe a substantial amount, you and your tax professional
can then make an offer to the IRS agent.
If approved, the Offer in Compromise allows you to satisfy
your outstanding tax debt without having to give up your home
and your life. Despite what you may have heard, the IRS isn't
out to ruin you. With the help of a qualified tax professional,
you can take care of your debt without having to move into the
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