July, 2013

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

Is the IRS turning average taxpayers into bookkeepers?   The answer, in many cases, is “Yes”.

Our experience in recent IRS audits has shown the level of required, detailed information is at the same standard as required for businesses.

If you claim expenses, make sure you have (at minimum) a receipt and proof of payment.


The Continuing Evolution of Obamacare -  

We planned to provide additional information on Obamacare in this issue. However, because of the many ongoing changes, we have decided to wait until the next bulletin.  Stay tuned.


Take Me Out to the Ball Game...

We have 10 tickets available on a first-come, first-serve basis for Tacoma Rainiers games. Tickets are for general seating and are exchangeable for different seats, different days - and they include a parking voucher!

Please call the office at 253-752-9522 to reserve your tickets.

David S. Nelson, CPA, CTRS
NELSON & COMPANY, P.S.
Certified Public Accountants




IRS Times & Inquirer

Inside This Issue...

-RAPPER FAT JOE SENT TO PRISON FOR TAX EVASION
-‘SOVEREIGN CITIZEN’ SENTENCED TO 97 MONTHS FOR PROMOTING TAX SCHEME




RAPPER FAT JOE SENT TO PRISON FOR TAX EVASION

Rapper Fat Joe was sentenced to four months in prison for failing to file tax returns on more than $3.3 million in income.

Fat Joe, whose real name is Joseph Cartagena, pleaded guilty to two counts of failing to file an income tax return.

“There was a lot going on in the years that I didn’t file my taxes, but it was my responsibility,” he said.

Fat Joe is best known for the song “Lean Back,” and had a well-publicized feud with fellow rapper 50 Cent.

The judge in his tax case could have sentenced Fat Joe to two years in prison. But the judge was lenient in giving a four-month sentence due, in part, to Fat Joe’s payment of $718,000 in back taxes and for his history of charity work. In a letter to the judge, Bronx Borough President Ruben Diaz described how Fat Joe donated computers to local schools.




‘SOVEREIGN CITIZEN’ SENTENCED TO 97 MONTHS FOR PROMOTING TAX SCHEME

A Yelm, Wash., man who advised and assisted others in a tax fraud scheme was sentenced to 97 months in prison and three years of supervised release.

Raymond Leo Jarlik Bell, who was also ordered to pay $702,276 in restitution, was convicted in March 2013 of five counts of filing false, fictitious and fraudulent claims, 15 counts of assisting in filing false tax returns, three counts of mail fraud, and one count of criminal contempt. He and his wife, Ute Christine Jarlik Bell, are members of the so-called “Sovereign Citizen” movement, whose adherents believe the U.S. government is illegitimate.

The government’s investigation of Bell centered on the filing of false tax returns using a scheme known as OID fraud. In 2006, Bell obtained a tax refund in excess of $30,000 using the scheme. Numerous others who Bell advised filed for and received fraudulent refunds they did not deserve. One woman received a tax refund of more than $590,000.

In 2005, U.S. District Judge Robert J. Bryan ordered Bell to stop promoting fraudulent tax schemes. Less than three years later, he was back promoting another massive tax fraud among friends, family and strangers.




 

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Nelson & Company, P.S., CPAs Since 1979

====NOTICE REQUIRED BY IRS====
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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