MARCH, 2013

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

IRS WARNS OF SCAMS ---Beware of Emails and Phone Calls

We have warned you about phishing tricks via phony emails, calls and letters, but another game is in town and the IRS wants to warn you about it.  Scams.  
Taxpayers need to beware of bogus IRS emails, texts, calls and letters that try to trick you into disclosing personal and financial information. These scammers often send letters about refunds and use fake websites to try to get you to disclose information. Some of them look very official - but they are scams.
What the IRS wants you to know:

Visit the IRS website for more details on how to report scams - and to see examples of IRS fraud.

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


IRS Times & Inquirer

Inside This Issue...

Snoop Dogg Owes $546k in Back Taxes
Ohio Businessman Used Cash Payment In Attempt To Evade Nearly $400,000 In Income Taxes


Snoop Dogg Owes $546k in Back Taxes

Hip-hop artist Snoop Dogg owes more than half a million dollars in back taxes to the Internal Revenue Service.

According to a lien the government filed, Snoop Dogg, whose real name is Calvin Cordozar Broadus Jr., owes $546,270.29 in unpaid taxes for the years 2009 and 2011.

Snoop Dogg, who was discovered by rapper and record producer Dr. Dre, has sold more than 30 million albums worldwide. His first album, Doggystyle, sold nearly a million copies in its first week of release and was a four-time platinum album.

This isn't Snoop Dogg's first brush with the IRS. According to celebrity news site TMZ, Snoop Dogg owed $476,000 in back taxes in 2008. He paid that debt when it came to his attention.


Ohio Businessman Used Cash Payment In Attempt To Evade Nearly $400,000 In Income Taxes

An Ohio man will spend the next 18 months in federal prison after pleading guilty to income tax evasion.

John W. Hufgard, 59, of Bath Township, Ohio, must also pay restitution to the Internal Revenue Service of $397,659 Hufgard was the sole proprietor of Universal Service and Repair.

Hufgard sold manufacturing racks to metal scrap dealers, and failed to report the proceeds on his federal income tax returns. Hufgard concealed his scheme by selling racks for cash, by depositing business income into his personal account, business income diverted into his personal account, and falsely recording business income as short term loans from himself, according to court documents.

He also tried to conceal his scheme by moving large amounts of scrapped metal racks to buyers greatest distances away. Hufgard preferred these dealers because they were willing to pay him in cash rather than rather using unknown dealers who might pay by check, according to court documents.

Through this scheme, Hufgard evaded approximately $397,659 in federal taxes.

 


 

 

TAX TIP:

TRIP LOG is a GPS app that can help you keep track of your mileage. The basic app is free - but you might want to invest $5 for unlimited reports.

http://www.pcworld.com/article/2020727/app-spotlight-automatically-track-your-mileage-with-triplog.html


--Our Policies-- www.DNelsonCPAs.com

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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