December, 2008

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

Year-end Tips---Loser Stocks - IRAs - Items to Donate to Charity

LOSER STOCKS - To take advantage of those loser stocks, you must sell them to claim a loss for 2008. The maximum write-off is $3,000 per year. Any remaining losses will be carried-over to following years until exhausted.

BAD NEWS FOR IRAs - The Treasury DID NOT suspend the minimum distribution requirement for 2008 from IRAs for those 70 1/2 years of age.

DONATIONS TO CHARITY - There is still time to donate those unwanted items to your favorite charity to lock in a deduction for 2008. Valuation worksheets are available on our Worksheets page at our website. We recommend you take photos of your donations as well as getting receipts.

NELSON & COMPANY, P.S.
Certified Public Accountants
www.DNelsonCPAs.com


IRS Times & Inquirer

Inside This Issue...

Brazilian Racing Star Faces US Tax Evasion Trial
'Priest' Gets 54 Months


Brazilian Racing Star Faces US Tax Evasion Trial

Brazilian race-car driver and "Dancing with the Stars" winner Helio Castroneves faces a tax-evasion trial in March 2009 in a Miami federal courtroom.

Castroneves, 33, a two-time winner of the Indianapolis 500, pleaded not guilty in October and is free on $10 million bail.

Federal prosecutors charged the driver-turned-dancer with one count of conspiracy and six counts of tax evasion, alleging he failed to report $5.5 million in income from 1999 to 2004. Castroneves, with the help of his sister and lawyer, allegedly set up a corporation in Panama to aid in the tax-evasion scheme.

Meanwhile, Castroneves has asked for the trial to be delayed. Penske Racing, in an affidavit filed with the court, said it "will be forced, in all likelihood, to change drivers" if the trial begins in March.

If convicted, Castroneves faces up to five years in prison for each count.


'Priest' Gets 54 Months

Self-proclaimed priest Earl R. Wolfe was sentenced to 54 months in prison on charges of tax fraud and was ordered to pay $224,869 in restitution. In September, Wolfe was found guilty by a Fort Lauderdale jury of conspiring to defraud the United States and filing false tax returns.

According to court records, from 1999 to 2004, Wolfe reported $600 of income on tax returns he filed with the IRS. However, evidence at trial proved he earned more than $750,000 as an unlicensed architect. Wolfe attempted to conceal his income by cashing more than $600,000 at a local check-cashing store and using nominee entities. Evidence presented at trial also proved that Wolfe had not paid any income tax since 1989.

In addition to concealing his income, Wolfe attempted to hide his assets from the IRS. In October 2003, falsely claiming to be a priest, Wolfe created the Office of the Presiding Overseer of the Domicile Creators Service Ministry, which purported to be a tax-exempt religious entity. Wolfe then transferred ownership of his personal residence and two Harley-Davidson motorcycles to the so-called ministry.


 





--Our Policies-- www.DNelsonCPAs.com

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

Contact Us
Back to our Home Page
Back to Last Page Visited
Printer Friendly Page