Halpern v. Wake Forest University Health Sciences, ____F.3d____(4th Cir. Feb. 28, 2012), is an extremely important case. The court upholds the discharge of a medical student from medical school and rejected his ADHD defense under the Rehab and ADA. Why,…
According to the California Highway Patrol (CHP), hundreds of cyclists are injured in collisions with cars every year in San Diego. Cyclists’ injuries are usually catastrophic due to the fact that cyclists have nothing but a helmet to protect them from an impact with a car. Examples of catastrophic injuries are: head injuries, broken bone [...]
One advantage of a misdemeanor over a felony conviction is that it won’t result in possible deportation for green card holders. We talked about this tax problem in a past blog post. Still, as Wesley Snipes found out, three years of failing to file a tax return can result in three years in prison.
Those two actions were enough to cause a shift from charges of not filing a tax return to tax evasion.
A physician in Kentucky was arrested and charged last month with four counts of tax fraud pursuant to Internal Revenue Code Section 7201, and two counts of failure to file tax returns in violation of IRC section 7203. According to the indictment Dr. Werner Grentz had failed to file income tax returns since 1999. There is a common myth that it is better not to file a tax return at all than to file a false tax return. Like most myths there is some truth to this one. The willful failure to file a tax return is a misdemeanor punishable by “only” one year in jail, and a fine of not more than $100,000. IRC Section 7203. On the other hand tax evasion a/k/a/ tax fraud is a felony, and the resulting imprisonment can run up to 5 years, plus a fine of not more than $100,000. IRC Section 7201.
In addition, in some instances the failure to file a tax return can be charged as tax evasion. That’s what happened to Dr. Grentz. The indictments spells out that he was being charged with failure to file for two of the years, but tax evasion for four different years. In order to be convicted of tax evasion it is necessary for the IRS to show an “affirmative act”, not merely an omission to do something like the failure to file a tax return. According to the indictment in addition to not filing his tax returns he engaged in the following affirmative acts:
Any “advantages” should not be used as an excuse not to file a tax return when there is some uncertainty about the correct position to take on a return. It is much better to file a return with missing or even incorrect information (provided that appropriate disclosures are made) than not to file a return.
Tax Policy Blog reports that the Maryland legislature is considering whether to pass a law that would raise tax rates on wealthy individuals. And what is considered wealthy in Maryland? $100,000.00 of annual income: Maryland’s tax special session began today; expect more analysis on it from us tomorrow. However, we just obtained detail on S.B. [...]
There is little doubt that wealthy Americans are under scrutiny for tax collection. Nowhere is this more obvious than for those who have offshore bank accounts. More U.S. citizens living abroad are deciding to renounce their U.S. citizenship instead of facing IRS tax problems concerning new U.S. tax regulations namely the Foreign Account Tax Compliance Act (FATCA) aimed at curbing tax evasion.
The subject of renouncing citizenship made front page headlines
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The decision is Chamber of Commerce v. NLRB, ____F. Supp. 2d____ (D.D.C. May 14, 2012) and can be downloaded here, Download DDC decision According to the judge, “Member Hayes … did not vote on the adoption of the final rule…
One of the most common types of injuries that can be sustained in a slip and fall accident is a broken bone injury. Broken bone injuries, or bone fracture injuries as they are also called, are classified as either compound or simple. When a bone breaks and penetrates the skin’s surface, the injury is categorized [...]
Paul Caron reports that the rumor that illegal immigrants received $4.2 billion in fraudulent Child Care tax credit payments from the IRS is true: Following up on last week’s post, Illegal Immigrants’ Child Tax Credit Fraud Costs IRS Billions: FactCheck.org, Tax Credits for Illegal Immigrants: Q: Does the IRS pay billions in tax refunds to [...]
Roger Russell of WebCPA reports that Eduardo Saverin, a co-founder of Facebook, has renounced his U.S. citizenship prior to the company going public in a move apparently designed to limit his U.S tax liabilities: The Brazilian-born resident of Singapore took the action last year, and his name appears on an IRS list of people who [...]
This blog started on May 14, 2007 which is exactly 5 years ago. Wow! Time flys. I want to thank the individuals who have served as contributing editors and most importantly, I want to thank you for your support. Please…
Former Richmond, Virginia, House of Delegates member Phil Hamilton’s bankruptcy case was dismissed because he and his wife Kimberly failed to file a revised repayment plan.
EEOC v United Airlines, ____F.3d____(7th Cir. March 7,2012) is the case. It concerns the issue whether or not an employee who seeks an assignment to a vacant position must be qualified for that position. The court previously held that the…
In order to protect payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the Trust Fund Recovery Penalty (âTFRPâ). These taxes are called trust fund taxes because the employer actually holds the employee’s money in trust until he or [...]
March 26, 2009 My goal has always been clear â to get those taxpayers hiding assets offshore back into the system. We recently provided guidance to our examination personnel who are addressing voluntary disclosure requests involving unreported offshore income. We believe the guidance represents a firm but fair resolution of these cases and will provide [...]
Originally, the team’s owner, Tom Hicks, entered a voluntary, court-supervised process under Chapter 11 of the U.S. Bankruptcy Code pursuant to the sale of the team plan that had been previously negotiated and agreed to by Hicks Sports Group (HSG), then prospective new owners. Filed Chapter 11 to Relieve Debt There was a prospective sales [...]
Singer Houston Summers was arrested by local law enforcement in Malibu last week on suspicion of driving under the influence (DUI). Summers was spotted driving an older model sport utility vehicle erratically by local law enforcement agents who quickly pulled him over. Upon approaching the vehicle, officers at the scene reported the strong smell of [...]
26 USC § 6103 – Confidentiality and disclosure of returns and return information – provides that a taxpayer’s tax return information shall be confidential: a) General rule Returns and return information shall be confidential, and except as authorized by this title â (1) no officer or employee of the United States, (2) no officer or [...]
Itâs a great day at Tax Resolution Services. I am honored to announce that both Brian Compton and I have been selected as 2012 finalists for the 10th Annual American Business Awards, otherwise known as the Stevies. Â I was a nominee in 2009 and 2011 -while itâs great to be recognized again by the ABA, Iâm especially happy to Brian receiving recognition for his outstanding leadership.
Brian was selected as a
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The primary purpose of U.S. and California tax laws is to collect revenue for the government, but legislators are very familiar with the power of tax laws to influence taxpayer behavior. By imposing an additional cost on a transaction, tax…
I am delighted to announce the publication of my latest law review article, Employees, Employers, and Quasi-Employers: An Analysis of Employees and Employers Who Operate in the Borderland between an Employer-and-Employee Relationship, 14 Univ. Pa. J. Bus. L. 605 (2012)….