July, 2011

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

Congress Offers Tax-Free Flights...for now.

While Washington argues over the debt ceiling, frequent travelers may catch a break. 
One of the tax measures not yet resolved involves federal taxes on airline tickets. Since Congress has not confirmed the FAA budget, laws that authorize collection of federal taxes on airline tickets expired. Tickets sold after July 22 2011 won't include these federal taxes. 

Virgin America has turned this into a savvy promotion with slogans such as "Evade Taxes. Take Flight. Book a Tax Holiday. Grab a Seat With Fewer Federal Taxes." 

Others, namely American and US Airways, decided instead to scoop up your savings for themselves by increasing ticket prices by the amount of tax you would have saved.
There is a way to take your tax savings back, however. If you paid for tickets on or before July 22, 2011 for travel beginning on or after July 23, 2011, you may be entitled to a refund of ticket taxes already paid.

Airlines are permitted under the law to refund the tax, and the IRS has asked the airlines to provide refunds when requested. Although in theory this should work smoothly, if your airline isn't cooperative, you will be able to submit a claim to the IRS - just not right now. They don't have a plan in place yet. If you're eligible for a refund, keep an eye out at www.irs.gov for an announcement.

David S. Nelson, CPA, CTRS
Certified Public Accountants

IRS Times & Inquirer

Inside This Issue...

Most-Hated Mom Owes IRS $68,000...so far.
Florida Man Sentenced to Prison for Failing to Pay Employer and Personal Taxes

Most-Hated Mom Owes IRS $68,000...so far

The IRS filed a $68,520.41 tax lien against Casey Anthony in Kississmee, FL. prior to her being acquitted of charges related to the death of her daughter, Caylee.

It will be interesting to see how much she will owe for future book and movie deals. 

Florida Man Sentenced to Prison for Failing to Pay Employer and Personal Taxes

Stuart M. Register, 44, of Brandon, FL. was sentenced to 27 months in federal prison after pleading guilty to 13 counts of failure to pay federal income tax and four counts of filing false income tax returns.

According to court records, from 2003 to 2007, Register owned and operated Criminal Research Bureau Inc., in Brandon, Fla. He employed individuals and had a duty to withhold and pay over federal employment taxes from those employees to the IRS.
From the first quarter of 2003 to the fourth quarter of 2007, Register withheld federal employment taxes from his employees totaling $316,220.22, but failed to pay it over to the IRS.

In addition, for the tax years 2003 to 2006, Register failed to pay personal income tax, filed false individual income tax returns with the IRS, and collected federal income tax refunds to which he was not entitled.

Register's failure to pay taxes he withheld from his employees, together with his filing of false income tax returns resulting in undue refunds, resulted in a total tax loss to the IRS of $345,612.87. The case was investigated by the IRS Criminal Investigation Division.



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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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