| DECEMBER, 2004
Inside This Issue....
OHIO MAN TRIED TO
CONCEAL MORE THAN
$4 MILLION IN INCOME
A Westerville, Ohio, man was convicted of trying to conceal more than $4 million in income from the Internal Revenue Service.
Eugene Everett Armold, 56, was sentenced to 45 months in prison today for making false statements on income tax returns for 1999 and 2000. Armold was also ordered to pay outstanding income tax liability to the IRS to the tune of $1.5 million.
In 1999, Armold claimed $450,932 in income when it was, in fact, at least $4.2 million.
At trial, it was revealed that the $4 million came from Armold’s ownership of Purchase Plus Buyer’s Group. He paid himself a consulting fee by transferring the money to a Nevada corporation known as Simba Financial Inc. This corporation existed simply to receive this money and then funnel it to several other shell corporations.
Armold used some of the money for personal use and funneled $3 million of it to an overseas account. He then transferred the money back to the United States for personal use.
“Tax crimes steal from us all and should be punished accordingly,” said U.S. Attorney Gregory G. Lockhart in a statement.
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|IRS Times & Inquirer
NELSON & COMPANY, P.S.
CERTIFIED PUBLIC ACCOUNTANTS
253-752-9522 | 1-800-669-0137
Inventor Convicted of Tax Fraud
A San Diego, Calif., man who invented a wheel-lock system for four-wheel-drive, off-road vehicles has been convicted of tax fraud.
Shortly after forming Traction Matters Inc. to market his new product, 62-year-old John Zentmyer sold the company for a cool $1 million.
One problem: Zentmyer never reported income from the sale on his personal income tax return. Instead, he deposited the money in an offshore account. The IRS found out. Zentmyer owed $264,335 in back taxes.
Last month, a federal grand jury in Los Angeles convicted Zentmyer of tax evasion. He could receive up to 50 years in prison at his upcoming sentencing hearing.
Village Official Indicted for Tax Charge
A public works superintendent for the Village of Streamwood, near Chicago, was charged with filing a false federal income tax return in which he allegedly failed to disclose roughly $27,175 of additional income during calendar year 2000.
Timothy Holloway, 45, was charged in a single-count information that alleges that he received additional income in 2000 from American Management Resources in Morton Grove, Ill.
Holloway allegedly failed to disclose the extra income on his 2000 federal income tax return, which was filed in February 2001.
If convicted, Holloway could face up to three years in prison and a $250,000 fine. Additionally, he could be required to pay back taxes and fines.
IRS QUESTION CORNER...
Question: I never thought it would come to this: I owe the Internal Revenue Service $85,000 in back taxes and penalties, according to my accountant. It was a stupid gamble: I delayed paying taxes, hoping that my business would take off. It made money (hence the taxes owed) but never like I thought it would. I closed shop four months ago, I have a kid in college, $20,000 in my bank account, and no way to pay my tax debt. What can I do?
Answer: I’ve had a number of clients with problems such as yours walk through my door. For whatever reason, some taxpayers think they can delay paying back taxes, waiting for sunnier days when they won’t need the money quite as much. In their cases, as in yours, that sunny day never came.
But it’s not all doom and gloom. As an American taxpayer, you have rights and options. That’s part of what I do: present to you your best options and then help you execute them. In your situation, you likely have two options: an Offer in Compromise or an Installment Agreement.
If you can prove to the government that you lack the means — and will lack the means for years to come — to pay your tax debt, you might qualify for an Offer in Compromise. In this program, you offer the IRS a settlement amount (sometimes pennies on the dollar!) that will make your debt go away once and for all. The IRS offers this program as a way to settle debts without having to chase taxpayers around the country year after year.
The other option is an Installment Agreement. If you do not have the ability to pay the debt now but will have the ability to pay over time, then you can enroll in this option. It will allow you to make small monthly payments that over time will finally eliminate your tax debt. These payments are similar in size to a car payment, and although they will eventually satisfy your debt, they likely will not disrupt your present lifestyle.
Why not settle your tax debt once and for all? 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