Inside This Issue....
DELAWARE BUILDER CONVICTED ON TAX EVASION CHARGES
Donald L. Donovan, the 53-year-old former owner of a company that constructed pre-engineered steel buildings in Seaford, Del., was convicted of four counts of attempted tax evasion for the years 1996 to 1999. Donovan was also convicted of four counts of willful failure to file income tax returns for the same years.
According to the indictment, Donovan attempted to conceal his income from the IRS by using a personal bank account that listed a fictitious Social Security number and provided customers with false Social Security numbers for 1099 forms.
In his defense, Donovan argued that federal income tax laws do not apply to him. The jury rejected that defense.
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Owner of Dietary Business Pleads to Tax Charges
The former owner of Geral Vital International, a company in Marina Del Ray, Calif., that marketed dietary supplements to senior citizens, has pleaded guilty to tax charges after the government alleged that he inflated his business expenses to evade millions of dollars in corporate taxes.
Now a resident of Miami Beach, 60-year-old Almon Glenn Braswell pleaded guilty to the felony charge and admitted a tax liability of $10,455,367. What’s more, Braswell has admitted that he has the money to pay the debt. As part of the plea agreement, he agreed to make full payment to the Internal Revenue Service in the next three weeks.
Also as part of the plea, Braswell has agreed to cooperate with the government in providing information on others who helped him evade taxes. He will serve 18 months in prison. However, if a federal judge determines that Braswell does cooperate as promised, he will receive 41 months in prison.
St. Louis Periodontist Sentenced for Filing False Tax Returns
A St. Louis periodontist was sentenced to three years of probation, including six months of home confinement, for filing a false tax return.
Prior to 1996, 54-year-old Linda Marilyn Weaks deposited all non-cash business receipts into one main bank account and reported these deposits to her accountant. In 1996, Weaks opened additional bank accounts and began to deposit her business income into these secondary accounts without notifying her accountant.
In her plea, Weaks admitted that she created the secondary bank accounts to conceal money and underreport income on her tax returns. In all, Weaks evaded $39,026 in taxes.
I owned a business in the late ’90s that boomed during the skyrocketing
dot-com era. Although my business was a well-oiled machine,
my accounting was a mess. In fact, after the market went bust,
I learned that I owed $140,000 in payroll taxes to the IRS.
I don’t have that kind of money now, and an IRS agent is threatening
levies. What can I do?
Yours is definitely a situation in which you should consult
a qualified tax professional. Obviously, the IRS is aware that
you owe a considerable amount of money and for one reason or
another, your revenue officer is determined to collect, even
if it requires levies.
The first thing you and your qualified tax professional
should do is analyze the company’s books, if available, to determine
the exact amount you owe in back payroll taxes. If mistakes
were made here, it’s quite possible that you may owe the federal
much, much less than $140,000.
But let’s assume for now that you do owe such a substantial
amount. You have options. If indeed you do not have assets or
the means to pay this debt, you can choose to file an Offer
in Compromise. This is generally a cash offer meant to settle
your debt once and for all. Oftentimes, believe it or not, a
settlement offer that amounts to pennies on the dollar will
be accepted if the IRS believes that is the best method to collect
On the other hand, if you do have the means to settle
the tax debt, you may qualify for an installment agreement.
Under this program, you and your qualified tax professional
will work out an agreement with the IRS that will allow you
to make small monthly payments that will satisfy your debt over
Although having an IRS agent on your trail is a very
scary thing, you should remember that you have rights and options.
Right now is the best time for you to have an advocate, someone
who knows how to deal with the IRS. 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