June, 2009

IRS Times & Inquirer

Inside This Issue...

N.Y. Politico Has Tax Problems
TN Man Convicted of Tax Evasion
IRS Question Corner

N.Y. Politico Has Tax Problems

Nassau County, N.Y., Legislator Roger Corbin has been charged with filing false federal tax returns and making false statements to agents of the FBI and IRS.

According to the complaint, Corbin received 81 checks totaling approximately $226,000 from a developer between Feb. 22, 2005, and Dec. 31, 2007. Each of the checks was made payable to “Cash” and deposited into one of Corbin’s personal bank accounts. In interviews with special agents of the FBI and IRS, Corbin acknowledged receiving the checks from a developer who had been awarded construction contracts as part of a federally funded revitalization project in New Cassel. Records showed the money was used for personal expenses, though Corbin told FBI and IRS agents he gave the money to an individual who was purportedly paying workers at the developer’s New Cassel construction sites.

If convicted, Corbin faces up to five years in prison on the false statement charge and up to three years in prison for each of the false tax returns filed. He also faces a fine of up to $250,000 on each count on which he is convicted.

TN Man Convicted of Tax Evasion

Michael R. Aldridge, 42, of Memphis, was convicted of one count of tax evasion the tax years 1991 to 1997.

Evidence presented during the eight-day trial revealed that Aldridge owed more than $261,000 in taxes. Evidence also showed that Aldridge signed and submitted false Forms 433-A and 433-B with two Offers in Compromise (OIC) to the IRS and made false statements and submitted false documents during the negotiation of these OIC.

In addition, Aldridge purchased vehicles in the names of family members and friends during tax years 2001, 2003 and 2004, and purchased a residence using two different nominees between 1992 and 2005.

Evidence revealed that in 2004, Aldridge liquidated the assets of his corporation, Pro Oil, for a profit of $433,000, and through an elaborate scheme, diverted these funds for his own benefit. In an attempt to conceal the scheme, Aldridge made it appear that various relatives had loaned the corporation money. Testimony during the trial showed that Aldridge directed his attorney to disburse the proceeds of this sale to various relatives. Most of these relatives had not made loans to the corporation and they were instructed by Aldridge to deposit $50,000 checks into their personal bank accounts.

IRS Question Corner

Question: I have a lot of debt, including tax debt. How I amassed this debt isn’t important right now. What is important is this: What can I do about the tax debt?

Answer:  Unfortunately, given our economy and the stock market collapse that began in October, yours isn’t an uncommon position. But the first thing you should do is remember that you have options, particularly regarding your tax debt.

It sounds to me that you might be an ideal candidate for the Offer in Compromise program. The IRS designed this program for taxpayers who, for whatever reason, are unable to pay off their debt tax, even over time. This may be a result of job loss, illness, death in the family, etc. Ultimately, the reason doesn’t matter so much as your current financial position and the amount of your tax debt.

However, if you qualify for the Offer in Compromise program, you could reduce your debt significantly. The reason for this is simple: After years of chasing deadbeat taxpayers, the IRS discovered in many situations that it is actually more effective to offer a kinder, gentler approach that favors negotiation over a strong arm.

If you think you might qualify for the Offer in Compromise program, the first thing you should do is consult with a qualified tax professional. He or she will analyze your previous returns with a fine-tooth comb, ensuring that you are not obligating yourself to pay even a penny more than you owe.

Once your debt amount is established and verified, you and your qualified tax professional will meet with the IRS to discuss a settlement offer. This offer — which, as I said, can amount to a very significant savings — will settle your debt once and for all.

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!

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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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