Message from Nelson & Company, P.S., CPAs
IRS Times & Inquirer
NELSON & COMPANY, P.S.
CERTIFIED PUBLIC ACCOUNTANTS
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False Returns from Big House
Ronald Dean Wells was charged with conspiracy to defraud the United States and making false claims stemming from a false tax refund scheme he operated from Ohio prisons.
According to the charges, Wells obtained the names and Social Security numbers of other prisoners, in most cases without their knowledge, which he used to prepare false tax returns claiming tax refunds in their names based on fictitious wages and tax withholdings. In fact, the named claimants did not have the reported wages and tax withholdings. Wells fabricated the wage and withholding information, generally forged the claimants' signatures, and listed other persons' addresses on the returns.
For the tax years 2000 and 2001, Wells filed 35 fraudulent income tax returns with the IRS, containing combined false and fictitious tax refund claims totaling $236,851. Based on 11 of these false claims, the IRS issued tax refund checks totaling approximately $56,189, which were negotiated by co-conspirators or other persons assisting Wells.
If convicted, Wells' sentence will be determined by the court after review of factors unique to this case.
Tax Evasion: 'Stupidest Crime'
After pleading guilty to tax evasion and admitting owing $159,918 from revenue related to his mail-order divorce business, William Cleveland Thompson, 63, of Newberg, OR, was sentenced to one year and a day in prison to be followed by three years of supervised release. "When individuals deliberately hide their income and fail to report their earnings to the Internal Revenue Service, they risk prosecution," said Kenneth Hines, the IRS Special Agent in Charge.
At the sentencing hearing, Thompson's attorney played a video announcement produced by Thompson in which he called tax evasion the "stupidest crime in America." The announcement has been aired in Thompson's home town of Yakima, WA, and urges those who attempt to evade taxes to stop doing so and cooperate with the IRS.
Thompson faces up to five years in prison a fine of up to $250,000.
IRS QUESTION CORNER...
Question: How do I find out if I'm eligible for the Offer in Compromise program? I have significant IRS debt.
Answer: You'll first need to consult a qualified tax professional. Without the help of a qualified tax professional, you'll be entering treacherous tax waters.
The first thing a qualified tax professional will do is examine your previous tax returns with a fine-tooth comb, making sure that you aren't obligating yourself to pay Uncle Sam even a penny more than you truly owe. This will also allow the tax professional to find out your true tax debt and whether or not you qualify for the Offer in Compromise program.
Some background: The IRS developed the Offer in Compromise program after spending years chasing down deadbeat taxpayers. The beat-on-the-door approach proved to be less successful than the IRS had hoped it would be. As an alternative, the tax-collecting agency turned to a gentler approach: the Offer in Compromise program. By negotiating up front with the IRS, the Offer in Compromise program allows you to reduce your tax debt by pennies on the dollar.
There are some qualification concerns: Obviously, as an anecdotal hurdle, you can't enter into the Offer in Compromise program with an extravagant house, a dozen luxury cars and enough money to take luxurious vacations around the world. The program is created for those who have amassed significant IRS debt but, due to a variety of circumstances, no longer have the money or income to be able to pay down the debt.
In addition to the Offer in Compromise program, taxpayers with significant debt to the IRS have a number of options available to them.
I solve IRS problems like this every day. For a free, no-risk consultation, please call my office at 253-752-9522 or send me an E-mail at Firm@DNelsonCPAs.com. Do it today!