| JUNE, 2004
Inside This Issue....
CT MAN JAILED FOR FAILING TO PAY TAXES
Francis R. Sablone, Jr., 55, of Old Lyme, Ct., plead guilty to willfully failing to pay taxes for the years 1992 and 1993.
According to the plea, Sablone owed more than $63,000 in back taxes and penalties. After failing to pay, Sablone, who is an attorney, sought to convince the IRS that he was incapable of paying the full amount owed.
He initiated an Offer in Compromise and convinced the IRS to accept approximately $18,300 for his tax liability and write off the remainder. During the process, however, Sablone did not inform the IRS that he was in the real estate development business and controlled the operation and assets of a number of real estate companies. What’s more, Sablone admitted that he concealed others assets, including a 40-foot yacht.
He faces up to one year in prison and a fine of up to $100,000.
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.
• If you would like to receive future editions of
this publication in plain text, E-Mail Us.
• If you do not wish to receive any
future editions of this publication, received duplicate copies or
if you have received this bulletin in error, please accept our apologies
and E-Mail Us .
We will promptly remove you from our subscription list.
Copies of this and previous versions
of the Tax Bulletin are available on our web site:
NELSON & COMPANY, P.S.
CERTIFIED PUBLIC ACCOUNTANTS
253-752-9522 | 1-800-669-0137
Illegal Alien Jailed for Wire Fraud
27-year-old illegal alien has been sentenced to two years in prison after
pleading guilty to wire fraud.
Mohammad A. Majid, of Gaithersburg, Md., obtained approximately $355,000 from the
Indiana Department of Revenue by electronically filing numerous income tax
returns using fictitious names. In April 2002, the Indiana Department of
Revenue and the Federal Bureau of Investigations identified the fraud and
traced the money to bank accounts Majid controlled.
was arrested and prosecuted in Maryland. Following his two-year prison
sentence, he will be deported.
The People’ Tax Shelter Promoters Guilty
Seven Californians associated with a tax fraud group known as “We The People,” which promoted a bogus tax shelter scheme, were convicted in federal court in Los Angeles.
Lynne Meredith, 54, of Sunset Beach; Gayle Bybee, 56, of Sunset Beach; Gregory Paul Karl, 54, of Solana Beach; Teresa Manharth Giordano, 41, of Murrieta; Willie Watts, 45, of Murrieta; Betty Erickson, 59, of Windsor; and Nora Moore, 55, of Huntington Beach were convicted on charges that included conspiring to defraud the Internal Revenue Service, fraudulently using Social Security Numbers and failing to file income tax returns.
Trial evidence showed that from 1991 to April 2002, Meredith conducted seminars and sold books that led people to believe they could legally shield income and assets from taxation. Meredith and her co-defendants encouraged and assisted taxpayers by forming phony “pure trusts,” opening bank accounts with phony Taxpayer Identification Numbers, filing fraudulent income tax returns and encouraging taxpayers not to file income tax returns.
Each charge they were convicted of carries a penalty of up to five years in prison.
IRS QUESTION CORNER...
According to my current 2004 tax filing, my tax debt has swelled
from $15,000 in 2000 to $79,550. It's time to take action. I hit
some rough financial times and I had expected to pay off my tax
debt before now, unfortunately, I never could. However, I recently
landed a high-paying job and though I can’t cut a check today,
I could pay the tax debt over time. What can I do?
Answer: If your
current resources and employment allow you the opportunity to
pay off this tax debt over time, your best bet would be an installment
agreement. It’s designed for taxpayers in your situation.
Here’s how it works: First, a qualified tax professional
will scrutinize your 2000 to 2004 tax returns to ensure that you
have not overestimated your tax due. This process can often save
taxpayers thousands of dollars. After all, why pay the IRS more
than you’re legally required? Once an exact debt figure is calculated,
you and your qualified tax professional can approach the IRS about
entering into install agreement.
If the agreement is granted, you will then pay a monthly
amount toward your debt that will allow you to pay it off over
time. Think of it like a mortgage or car loan payment. It’s very
similar: an amount substantial enough to pay down the debt but
not so much that it disrupts your lifestyle in any major way.
Although it might not be an option, you should also consider
talking to your qualified tax professional about an Offer in Compromise.
Let’s say, for instance, you lose your current job and are subsequently
unable to pay your IRS debt. In this circumstance, the IRS will
often accept a pay-off amount that amounts to pennies on the dollar.
For many taxpayers, it’s the best and only way to finally get
out of tax debt.
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