Inside This Issue....
"I told you we have
ways to make you talk."
CA WOMAN SENTENCED TO 37 MONTHS FOR TAX SCHEME
Karen Louise Younce, 54, of Grass Valley, Calif., was sentenced to 37 months in prison for her role in a large-scale abusive tax trust scheme.
According to Assistant U.S. Attorney S. Robert Tice-Raskin, Younce previously admitted that, from 1992 to 2002, she helped impede the collection of more than $2 million in federal income taxes. Using domestic and foreign trusts she marketed, Younce helped a host of clients hide income from the IRS.
In addition, Younce advised and assisted her clients in cycling their income through offshore bank accounts she controlled, then returning the income to the clients.
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|IRS Times & Inquirer
NELSON & COMPANY, P.S.
CERTIFIED PUBLIC ACCOUNTANTS
253-752-9522 | 1-800-669-0137
Brothers Tried to Evade Millions in Income Tax
Two brothers in San Diego pleaded guilty to charges that they failed to report millions of dollars in income.
Samer S. Gadalla and Sherif S. Gadalla, co-owners of Computer Depot Warehouse, both often received business revenue in cash, using the money for personal expenses. In fact, from 1998 to 2002, the brothers did not report millions of dollar in income. According to the plea agreement, the Gadalla brothers agreed that they will be sentenced based on the total amount of tax loss for the years 1998 to 2002.
As a result, from 1998 to 2002, Samer Gadalla admitted to reporting only $103,958 when he actually earned $5,007,853 for that same period. Samer tried to avoid paying $2,006,905 in income tax. His brother, Sheirf, reported for the years 1998 to 2002 as income $29,831 when he actually owed $1,979,316 in income tax for that same period, resulting in a tax loss of $1,949,485. ďThe extent of this tax evasion was fairly breathtaking,Ē U.S. Attorney Carol C. Lam said in a statement.
Both brothers face up to three years in prison and a fine of up to $100,000.
Contractor Receives Prison for Evasion
Edward R. Petrucci, 48, of Orange, Ct., was sentenced to two months, to be followed by six months at a halfway house, 12 months of home confinement, and three years of supervised release. Earlier, Petrucci pleaded guilty to one count of evasion, admitting that he tried to avoid paying more than $1 million in taxes.
Petrucci is the owner and operator of several corporations that were in the business of insulation remediation and installation. Petrucci admitted that during the years 1996 to 1999, he used corporate funds to pay for a variety of personal expenses, including gambling debts ($1,745,000), home improvements ($594,716), and home furniture ($65,567).
Although Petrucci has already paid a portion of his outstanding tax liabilities, according to the prosecutor, he still owes the IRS more than $2 million in tax, penalties and interest.
IRS QUESTION CORNER...
I donít have time to explain exactly why right now, but let me just tell you that I owe roughly $106,000 in back taxes. The IRS sent me a letter yesterday and Iím freaking out! I donít have that much money. What can I do?
Answer: For most people, dealing with the Internal Revenue Service can be a positively frightening experience. And it should be. IRS agents have the power and ability to make your life extremely difficult ó or even send you to prison.
In fact, Iíve had clients sit in my office who were perspiring so heavily that the sweat ran down their brow like rivers. They were petrified! But I will tell you what Iíve told them: If you consult a qualified tax professional, you will quickly discover that, while an IRS problem isnít fun, it doesnít have to be a nightmare.
Letís take a quick look at your case. While your current estimate of $106,000 in back taxes might be accurate, the first thing a qualified tax professional will do is analyze your tax returns with a magnifying glass to make sure you are not paying even a cent more than you owe.
Once that is completed, you and your qualified tax professional will meet with an IRS agent. You will likely have two options:
1) Installment Agreement ó Similar to how a mortgage or car payment works, you will pay a small amount over time that will eventually pay off your debt. Like a car payment, the amount is substantial but not enough to drastically change your lifestyle.
2) Offer in Compromise ó If you do not have the resources to pay off the debt, you will be a likely candidate for an Offer in Compromise. Under this plan, you will present the government with a compromise offer that generally amounts to pennies on the dollar!
I deal with problems such as yours every day. I am an IRS Problem Solver. For a free, no-risk consultation, call my office at 253-752-9522 or send me an E-mail at Firm@DNelsonCPAs.com. Do it 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