MAY 2013

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

IRS Exempt Group Under Congressional Scrutiny for Holding up Tea Party Applications

We’ve had a number of people ask about the Congressional hearings regarding tax exempt status for political organizations. In this scandal, the IRS not only sat on cases, but also required detailed information, and asked questions that were, quite honestly, excessive.

This particular case has gained notoriety because the acting IRS Commissioner, Steven Miller, resigned over the scandal. The IGs report does touch on a few problems, but there may be much more going on than simply a few people in the IRS holding up applications from various organizations such as the Tea Party. The real truth of the matter will require some time and in-depth investigations.

Many have expressed concern about the IRS going after everyday taxpayers like they have some political groups. There is one thing we must point out: The parties involved applied for a special tax status. All of the controversy revolves around the tax exempt section of the IRS, and those who applied for a special tax status. If you are not applying for some kind of special benefit, there is no need to fear the IRS.

Again, to reassure you: If you are not trying to get some kind of special tax status from the IRS, and are keeping good records of your income and deductions, there is no reason to fear.

David S. Nelson, CPA, CTRS
Certified Public Accountants

IRS Times & Inquirer

Inside This Issue...

Actor Stephen Baldwin Guilty of Tax Charges
Kansas Strip Club Owner Submitted False Tax Returns

Actor Stephen Baldwin Guilty of Tax Charges

Actor Stephen Baldwin pleaded guilty to failure to file income taxes for three years and will pay $300,000 in back taxes to the government.

Baldwin, the youngest of the Baldwin brothers and best known for his roles in The Usual Suspects and The Flintstones in Viva Rock Vegas, was arrested in December on charges that could have resulted in a prison sentence of up to four years. According to Baldwin's attorney, if the actor pays back the $300,000 he owes, the tax charge will be removed from his record. If he does not pay his back taxes, he will receive five years of probation and will have five years to pay the $300,000.

Baldwin blamed his tax troubles on mistakes made by professionals who were paid to manage his affairs while he was on a remote island shooting the reality TV show Survivor.

Kansas Strip Club Owner Submitted False Tax Returns

A Kansas man who owned a strip club received three years of federal probation for filing false tax returns and underpaying his federal income taxes.

Kirk Roberts, 49, Salina, Kan., was also ordered to pay $153,510, the full amount of taxes he owes.

He pleaded guilty to three counts of filing false income tax returns for tax years 2006, 2007 and 2008. In his plea, he admitted that while he was the owner of Wild, Wild West Inc., a strip club in Salina, he failed to report cash receipts totaling $537,942. As a result, he underpaid his federal income taxes by $153,510.

--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.

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