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MAY, 2010

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

New Hire Act -- For Employers

President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act into law on March 18, 2010. If, after February 3, 2010 and before January 1, 2011, you hire someone who has been out of work for 2 months (60 days), you may be entitled to a 6.2% credit on Form 941. The first quarter you can claim the credit is on Form 941 for 2nd quarter of 2010, due July 31, 2010.

For information about additional credits or for more information about the HIRE Act, visit:,,id=220326,00.html

Certified Public Accountants

IRS Times & Inquirer

Inside This Issue...

FL Businessman Gets 51-Month Sentence
Newspaper Publisher Goes to Prison in Tax Case
IRS Question Corner

FL Businessman Gets 51-Month Sentence

John Gullett, of Parkland, FL, was sentence to 51 months in prison, to be followed by three years of supervised release, after being convicted on four counts of filing a false tax return. Gullett was also ordered to pay restitution of $255,000 to the IRS.

According to court records, Gullett submitted false Form 1040 Individual income Tax Returns, statements and documents for tax years 2002 to 2005. He underreported his gross receipts from 2002 to 2005 and filed the tax returns with the IRS knowing that the returns contained materially false information.

Gullett contracted with the Broward County Police Benevolent Association (BCPBA) and the Dad County Police Benevolent Association (DCPBA) to solicit local businesses to buy advertisements in a book that Gullett published listing local businesses. The book was distributed to PBA members.

In exchange, Gullett paid BCPBA and DCPBA between $3,000 and $5,000 per month and kept any funds he raised in excess of these amounts. Gullett failed to report about $3 million of income from 2002 to 2005. Gullett used these monies to purchase a personal residence in Parkland, FL, and various luxury automobiles, including two Ferraris and a Lamborghini.

Newspaper Publisher Goes to Prison in Tax Case

A northern CA newspaper publisher was sentenced to five months in prison and ordered to pay $75,000 in restitution after he pleaded guilty to filing false tax returns for 2000 to 2003.

According to the pea agreement, Harry Warren Green admitted to operating several newspapers in the San Francisco Bay Area, including the Clayton Pioneer, Brentwood Bee, Bethel Islander and the Oakley Herald. Green admitted in his plea that he underreported income he received while operating the newspapers.

Documents filed with the court also state that Green failed to account for all the income received while operating those businesses, real estate commissions he received and income received from the sale of the Clayton Pioneer newspaper in 2003.

IRS Question Corner

Question: A friend told me I should be concerned about doing an Offer in Compromise. He said there are a lot of scams out there. How can I know if an Offer in Compromise is for me, and how can I know I'm not being scammed?

Answer:  Your friend isn't wrong about scams! Of course, scams are everywhere in the industry. Every year around this time, right after people have filed their tax returns and begin to realize they're in significant tax debt, the number of scams reported begins to rise. I'll answer your question in two parts:

First, determining whether the Offer in Compromise is for you is something you should do with the help and consultation of a qualified tax professional. Among your initial steps should be to determine whether you even qualify for the program. if you owe a substantial amount to the IRS and you now lack the means to pay that amount, you may qualify for the program. If you do qualify, it can significantly reduce your tax debt.

Second, scam artists often prey on those with tax troubles, particularly at this time of year. Some will even claim they have experience negotiating Offers in Compromise with the IRS. But most of these scam artists are fly-by-night operations using questionable marketing tactics.

If you need tax advice, you should research the background of the tax professional you are considering to hire: How many years in practice? Does he or she have references? Is he or she licensed? A member of a professional association? If you need tax help, make sure you find a qualified tax professional.

I’m an IRS problem solver. For a free, no-risk consultation, please call my office at 253-752-9522 or send me an E-mail at Do it today!

--Our Policies--

Nelson & Company, P.S., CPAs Since 1979

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.