Inside This Issue....
WA MAN GETS ONE YEAR IN PRISON FOR FALSE RETURNS
Elton A. Wilborn, a 56-year-old who formerly lived in Bellevue, WA., was sentenced to one year and a day in prison for filing false income tax returns.
On April 15, 2000, Wilborn filed his income tax return jointly with his wife for the calendar year 1999. The return understated his and his wife's income and exaggerated itemized deductions by substantial amounts, court records show. In fact, Wilborn understated their total income by about $384,000. Additionally, Wilborn admitted that he filed false returns for the years 1997, 1998 and 2000.
For those four tax years, Wilborn understated his and his wife's income by $388,658 and exaggerated deductions during that time by approximately $423,239.
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|IRS Times & Inquirer
NELSON & COMPANY, P.S.
CERTIFIED PUBLIC ACCOUNTANTS
253-752-9522 | 1-800-669-0137
IRS Agent Pleads Guilty to Evasion
The Internal Revenue Service doesn't offer special favors to its own agents. Ask Sandra Jean Valencia.
The former revenue officer and supervisory tax examiner with the Internal Revenue Service pleaded guilty to fraud and tax evasion after the tax-collecting agency discovered that she had diverted more than $500,000 from her grandmother's estate.
Valencia, of Goodsprings, NV., had been appointed by her grandmother to be the trustee of the estate. Using her power of attorney, Valencia transferred a vast majority of her grandmother's assets into her name and subsequently did not claim the money as income.
From 1997 to 2000, Valencia emptied her grandmother's bank account, collected $41,000 of life insurance proceeds and sold 41 acres of farmland. The former revenue officer admitted in court that she willfully evaded taxes during those years. Valencia faces up to five years in prison and a $250,000 fine for each of the 15 counts.
CA Woman Gets 46 Months for Tax Scheme
Elvia Ruiz, a 37-year-old woman from Terra Bella, CA., used “sophisticated means” to defraud the Internal Revenue Service, said U.S. District Judge Anthony Ishii. It will cost her the next 46 months of her life.
Ruiz admitted that she used post office boxes in her name as well as the names of family members to collect false refund checks from the IRS. She also used the addresses of coworkers. In pleading guilty, Ruiz admitted that she knew the refund checks were issued to people who had never worked in the United States and were not eligible for refunds.
The refund scheme was one of several that operated in the Central Valley, CA., area, said federal prosecutors. Prosecution of such schemes will continue. “These cases represent a significant priority for the IRS,” said IRS Agent Victor Song. “We are committed to working with the U.S. Attorney's Office to combat false tax return schemes such as this.”
IRS QUESTION CORNER...
I have some major tax debt. I own my own business and thanks to
a variety of reasons, including having to pay Ivy League tuitions
for my children, I owe the federal government about $185,000 in
back taxes from the past six years. They haven't contacted me.
I still find that shocking and in a sense, it scares me. What
can I do? I've heard about "Offers in Compromise". Could
that work for me?
Although it is unusual that the Internal Revenue Service hasn't
contacted you about such a large tax debt, it is not necessarily
unheard of. It does happen; but now is the time to act.
The IRS treats taxpayers who come forward much more favorably
than those it must hunt down.
An Offer in Compromise works for many taxpayers in your situation
and can often reduce tax debt to pennies on the dollar. While
your eligibility will depend largely on your current assets and
future earning potential, an Offer in Compromise can be the best
way out of tax debt. Here's how it works: A qualified tax professional
will analyze your previous six returns making sure you are not
claiming to owe the IRS any more than you actually do. At that
point, with the exact figure of your debt, you and your tax professional
will approach the IRS and offer a substantially lower amount in
an effort to square away your debt once and for all. Oftentimes
an Offer in Compromise can result in your having to pay only a
few pennies for every dollar you owe.
If you do not qualify for an Offer in Compromise, you may be eligible
to enter into an installment agreement with the IRS. This program
is intended to help taxpayers with the ability to pay off their
tax liability over time. Instead of hitting you with a $185,000
bill, the government will allow you to make small monthly payments
that will eventually satisfy the debt but will not drastically
reduce your lifestyle and quality of living.
I see clients with problems such as yours every day. Having a
tax debt over your head can be like looking up at the blade of
a guillotine. It's scary, but tax problems can be solved. 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