Failure to Pay Employment Taxes by Wisconsin Businessman

Wednesday, December 28th, 2011

After pleading guilty to failure to pay employment taxes, Gene R. Wendt, 56, Rhinelander, Wis., was sentenced to nine months in prison and fined $10,000.
From 2004 to 2008, Wendt owned and operated Crown Point Classics, a business in Hazelhurst, Wis., that restored antique cars andboats.
As the owner of the business, Wendt was responsible for collecting, accounting for, and paying over employment taxes withheld from the wages of CPC employees.
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Tax Evader Guilty of Filing False Refund Claims For More Than $1 Million

Friday, December 23rd, 2011

Following a three-day trial, Douglas M. Cavanaugh, Jr., 45, formerly of Binghamton, N.Y., was convicted of six counts of filing false claims for tax refunds from the Internal Revenue Service.
Cavanaugh was arrested at Los Angeles International Airport shortly after he arrived on a flight from Australia, where he resided. Evidence presented during the trial showed that Cavanaugh knowingly made and presented to the IRS six claims for payments of refunds

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Owe Back Taxes? Offer in Compromise or IRS Payment Plan Can Help

Wednesday, December 21st, 2011

Question: I’ve been struggling with IRS debt for a couple of years now. How do I know whether the Offer in Compromise or Installment Agreement is the right program for me? Answer: Ultimately you’ll need to consult in person with a qualified tax professional to find out exactly whether the Offer in Compromise or Installment Agreement is right for you, but it might help if you understand each program and

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Offshore Tax Evasion by Diamond Merchant

Tuesday, December 20th, 2011

Richard Werdiger, a former client of Swiss bank UBS, was sentenced to one year and one day in prison for conspiring to defraud the Internal Revenue Service. He had hid more than $7.1 million at UBS and evaded nearly $400,000 of taxes.
Werdiger pleaded guilty in March 2011 and agreedto pay a civil penalty of more than $3.8 million for his failure to report his overseas accounts to the IRS.
From

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Tax Client Saves $169,000 Through Offer In Compromise Program

Thursday, December 15th, 2011

Every month we choose a very special Tax Client Of The Month.  It’s our way of acknowledging good friends and saying “thanks” to those who support Tax Resolution Services with referrals, word of mouth and repeat business.
This month’s Tax Client Of The Month is Mr. Larry B.
Mr. Larry B. owed the IRS over $179,000.00 when he contacted our office. Our negotiations and advocacy resulted in the Franchise Tax Board accepting

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IRS Scrutinizes Higher Education’s Business

Wednesday, December 14th, 2011

The IRS is busy scrutinizing the hallowed halls of higher education. A recent article written by Michael McDonald of Bloomberg News, reports on IRS’ stepped up enforcement of non-profit colleges and universities across America to properly report income from all revenue streams.The American academic community is seeing first-hand the strong arm tactics of the IRS including the beloved Harvard University and the hotel it owns overlooking the Charles River.
Universities

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Tax Evasion by Colorado Madam Results in Sentencing

Tuesday, December 13th, 2011

A woman in Denver who operated a prostitution business was sentenced to time served, followed by two years of supervised release, for tax evasion in connection to her illegal business.
According to the plea agreement, in approximately May 2005, Brenda L. Stewart, 36, agreed to purchase a prostitution business in which she was employed, known as Denver Sugar and Denver Players.
Stewart created an entity called Phoenix Media and Consulting, LLC. This entity

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IRS Back Taxes Owed by Rapper Amount to Nearly $100,000

Wednesday, December 7th, 2011

Bow Wow, a 24-year-old rapper whose real name is Shad Gregory Moss, owes the Internal Revenue Service nearly $100,000.
According to TMZ, the federal government filed a tax lien against Bow Wow in Florida for $91,105.61 in unpaid taxes from the year 2006.
Formerly known by the stagename Lil’ Bow Wow, the rapper released his first album, Beware of Dog, at age 13. He has also appeared in a number of

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IRS to Return $153 Million in Undelivered Tax Refunds

Friday, December 2nd, 2011

The IRS is seeking to return $153 million in undelivered tax refund checks to taxpayers in 2011. A total of 99,123 taxpayers are owed checks, averaging at total of $1547 per check, due to mailing address errors!
If you are one of the taxpayers still waiting to receive your tax relief refund, follow these steps provided by the IRS to get your earned income back where it belongs and how to

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False Tax Return Filed by Jewelry Store Owner

Thursday, December 1st, 2011

Karen St. Pierre, of Barrington, R.I., pleaded guilty to one count of willfully filing a false individual tax return.
According to court documents, St. Pierre owned and operated the House of Windsor, a jewelry store in Newport, R.I., which in 2004 generated about $632,522 in gross receipts. On April 15, 2005, St. Pierre filed a false individual income tax return that reported, in part, that the gross receipts generated by the

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Non-Profit Officers Responsible for Payroll Taxes

Thursday, December 1st, 2011

A recent article in Forbes, Officers of Non-profits Face Personal Liabilities for Taxes by Robert Wood made me think about small business, specifically the people behind non-profit organizations (NPO). The well-meaning people who set up NPO’s provide the community at large withcharitable programs and services that are usually educational, literary, religious, or scientific in nature. In return, non-profits gain tax-exempt status. By not focusing on putting profits in shareholders

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Time to Consider Taxes as Year End Draws Near

Tuesday, November 29th, 2011

With the holidays approaching, it’s a good time to take stock and consider your taxes and financial life — and take time to correct the mistakes.
Thanksgiving just passed, and the holiday season is now upon us.
That means the year is almost over, and with it another tax year.
You’ve been here before, many times actually. We all have. But now is the time — this is the year — to start

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Tax Evasion by Ophthalmologist Gets Him One Year in Prison and Hefty Fine

Sunday, November 27th, 2011

A Brookline, Mass., ophthalmologist was sentenced for his failure to pay hundreds of thousands of dollars in taxes and for obstructing an IRS audit.
Mark S. Hughes, 50, received one year and a day in prison, to be followed by two years of supervised release. He was also ordered to pay a $60,000 fine. Hughes paid the IRS $1.75 million in restitution. He had pleaded guilty to tax evasion and obstruction

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Payroll Taxes Unpaid by Labor Agency Owner, Faces Prison Time

Wednesday, November 23rd, 2011

Doris Ruiz, of Minneapolis, Minn., was charged with one count of conspiracy to defraud the U.S. and ten counts of failure to account for and pay over federal employment taxes. The indictment alleges that from 2005 to 2007 Ruiz diverted $152,292.44 in payroll taxes by instructing employees to stop preparing tax return forms.
Ruiz is the owner of Olen Staff Company, a temporary work agency in Minneapolis. If convicted, she faces

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Filing False Tax Returns Gets Alabama Woman 35 Month Prison Term

Tuesday, November 22nd, 2011

Tawana Powell, 38, of Prattville, Ala., was sentenced to 35 months in prison after pleading guilty to conspiring to file false and fraudulent federal income tax returns charges. From 2005 to 2007, Powell and her co-conspirators filed more 160 returns with the IRS by using stolen identifying information of other individuals. The intended loss to the United States was more than $1.3. Powell was ordered to pay $676,465.49 in restitution

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Offer in Compromise Saves Tax Client Over $89,000

Monday, November 21st, 2011

Every month Tax Resolution Services chooses a very special Tax Client Of The Month.  It’s our way of acknowledging good friends and saying “thanks” to those who support our business with referrals, word of mouth and repeat business.
This month’s Tax Client OfThe Month is Mr. George N. Mr. George N. owed the IRS over $92K in back taxes when he sought help.  After several months of negotiations, we were

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Prison for Tax Evasion by Florida Man

Tuesday, November 15th, 2011

John Ivaldi, 59, of Palm Bay, Fla., and formerly of South Windsor, Conn., pleaded guilty to federal charges and was sentenced to three months in prison, to be followed by three months of home confinement and one year of supervised release, for failing to pay more than $123,000 in federal income taxes.
According to court documents and statements made in court, Ivaldi formerly owned and operated two businesses, Clean Fix Company,

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Tax Evasion by Detroit Political Fundraiser Who Pled Guilty

Tuesday, November 15th, 2011

A fundraiser for former Detroit Mayor Kwame Kilpatrick pleaded guilty to two counts of tax evasion.
Emma Bell, 66, of Detroit, worked as a fundraiser for nonprofit entities that included Kilpatrick for Mayor, the Kilpatrick Inaugural Committee and the Kilpatrick Civic Fund. Bell waspaid a percentage of the funds she raised for these entities, as determined by Kilpatrick — usually a commission of between 10 percent and 15 percent. According

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Veterinarian Pleads Guilty to Tax Evasion

Friday, November 11th, 2011

A Tennessee veterinarian faces up to three years in prison and fines up to $250,000 for federal tax charges.
Danny Dwain Moore, 56, of Unicoi, Tenn., pleaded guilty to willfully making a false federal income tax return.
Moore has been a licensed veterinarian in Tennessee since 1980.In the early 2000s, Moore began an online business specializing in the sale of natural holistic veterinary products for horses and pets. The business was

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Celebrity Tax Evasion: Comedian Chris Tucker Owes IRS $11.5 Million

Wednesday, November 9th, 2011

Comedian and actor Chris Tucker, best known for his starring role with Jackie Chan in the Rush Hour trilogy, owes the IRS $11.5 million in back taxes and penalties.
He’s also behind on payments on his $6 million, 10,000-square-foot waterfront home in Florida. SunTrust has filedfor foreclosure on the property.
But the 39-year-old Tucker, ever the funny man, turned his financial misfortune into something of a comedy routine when he appeared

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