March, 2009

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

The American Recovery and Reinvestment Act of 2009

President Obama recently signed the American Recovery and Reinvestment Act of 2009. This act provides for the one-time payment of $250 to individuals who get Supplemental Security Income (SSI) or Social Security benefits. There is nothing to file; the payments will made directly to qualifying individuals.

Also signed into law was the "Making Work Pay Credit". The credit is against income tax up to $400 for individual or $800 for married couples filing jointly. This credit applies retroactively to the start of 2009 and will be repeated again in 2010.

Policy Change---Consent to Disclosure of Tax Return Information

A new tax law change, effective January 1, 2009, requires you to provide us with written consent if you ask us to share your tax return information with a third party. For example, if you would like us to send a copy of your tax return to a bank or investment advisor, or if you want a third party to pick up your completed tax return, you will first need to complete a special written consent form. This consent form specifically authorizes us to transfer that information to the designated third party. If Nelson & Company P.S. CPAs fails to obtain your written consent prior to providing tax return information to a third party, we could be subject to a $1,000 fine and up to a year in prison. We intend to adhere to this new requirement without exception.

For more information and to download or print the form, go to: http://www.dnelsoncpas.com/xformconsenttodisclosure.htm

NELSON & COMPANY, P.S.
Certified Public Accountants


IRS Times & Inquirer

Inside This Issue...

Pro Golfer Faces Tax Charges
Couple Sentenced for Ponzi Scheme, Income Tax Evasion
IRS Question Corner


Pro Golfer Faces Tax Charges

Professional golfer Jim Thorpe faces four counts of failure to file an income tax return and three counts of failing to pay income taxes. According to prosecutors, in addition to being a golfer on the PGA Champions Tour, Thorpe earned income by playing in PGA events and from various endorsements. He also was the sole officer and director of a Florida corporation known as JLT Inc.

Thorpe, 59, of Heathrow, FL, allegedly failed to file on a timely basis his personal income tax returns for the years 2002, 2003, and 2004; failed to file on a timely basis the corporate income tax return for JLT Inc. for the year 2003; and failed to pay his personal income taxes for the years 2002, 2003, and 2004. The total unpaid income tax for the three years is about $1.6 million, the government alleges.

Thorpe faces up to seven years in prison, a $3.2 million fine and seven years of supervised release.


Couple Sentenced for Ponzi Scheme, income Tax Evasion

Shirley G. Graybill, 72, of North Haven, CT, was sentenced to two years of probation - the first four months of which she must spend in home confinement - after pleading guilty to one count of making and subscribing to a false 2002 tax return.

According to court records, the Triple Diamond Foundation was an entity created by Graybill and her husband, Dale L. Graybill, purportedly to fund cancer research - but which did not have tax-exempt status from the IRS. The Graybills controlled the Triple Diamond Foundation and its bank account. During the 2002 tax year, the Graybills transferred about $350,000 from the Triple Diamond Foundation account, used those funds as income, and failed to pay about $93,293 in federal taxes.

On October 13, 2003, Graybill filed a tax return with the IRS in which she failed to claim her actual taxable income, which was approximately $316,519.79.

The Graybills also must pay $93,293 to the Internal Revenue Service. In addition, Dale Graybill was sentenced to 48 months in prison following his conviction on one count of mail fraud stemming from his operation of a multimillion-dollar Ponzi scheme in which he solicited investments for fictitious investment programs.


 

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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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