Newsletter April 25, 2018

Inside this edition: Work for the IRS & Have a Conduct Issue? No Problem! Here’s A Bonus!, Dentist Gets Caught Filling Pockets with Cash by IRS, Bit of Humor, Celebs Who Got Busted for Tax Fraud, IRS Q & A, For the foodies … Egg Roll Bowls

 

April 25th, 2018

Tax Controversy Specialist, Lecturer
Author of Now What? I Got a Tax Notice
from the IRS. Help!

Inside this edition:

  • Work for the IRS and Have a Conduct Issue?  No Problem! Here’s Your Bonus!
  • Dentist Gets Caught Filling her Pockets with Cash by the IRS
  • A Bit of Humor
  • Celebs Who Got Busted for Tax Fraud
  • Your IRS questions answered here
  • For the foodies … Egg Roll Bowls

Work for the IRS and Have a Conduct Issue?  

No Problem! Here’s Your Bonus!

In 2012 it was discovered in an audit that over 2,800 employees with conduct problems received bonuses, so in 2016-2017 the Treasury Inspector General for Tax Administration conducted another audit and found that the problem was ongoing.

Although the IRS screening stopped over 1,000 employees with tax problems from getting bonuses, another 1,962 employees with discipline problems, including 26 who were found cheating on their taxes, received bonuses totaling over $1.7 million. Three of the employees who received a combined bonus of over $7,000 were found to have over $65,000 in outstanding tax balances.

Among those who received bonuses, two employees who sexually assaulted colleagues received nearly $1,500 in combined bonuses, and another two employees that received bonuses were found to be illegally snooping on taxpayer’s returns.

A spokesman for the IRS said, “The examples are unacceptable but that it’s taken steps to get a handle on things since the last audit. This problem continues to be a priority for us, and we will continue to make improvements going forward.”

Dentist Gets Caught Filling her Pockets with Cash by the IRS

Photo by Trinity Kubassek from PexelsAndrea Henry of Shelby County, TN was sentenced to serve 12 months in prison on charges of evading payment of taxes.

Henry was the owner of 2 dental practice locations, and it was shown that although she filed her 2005, 2006, 2008, 2010 and 2013 returns, she failed to pay $113,781 in income and self-employment taxes. Henry also failed to pay the employment taxes withheld from her employee’s paychecks for several quarters from 2005-2015. The IRS assessed trust fund penalties of more than $160,000.

Instead of paying her taxes, Henry spent the money on personal expenses including private school tuition, expensive housing, and luxury cars.

Once the IRS assessed penalties against Henry, she stopped using her personal bank accounts and used the business account instead to pay personal expenses, including a Dodge Viper and Porsche Panamera.

In addition to jail time, Henry must serve three years supervised release and pay restitution in the amount of $653,116.78 to the IRS.

A Bit of Humor…

Worried about an IRS audit? Avoid what’s called a red flag. That’s something the IRS always looks for. For example, say you have some money left in your bank account after paying taxes. That’s a red flag.
-Jay Leno

Celebs Who Got Busted for Tax Fraud

Celebrities are not immune to paying taxes. These celebs got caught…

  • Dr. King was the first person in Alabama’s history to be prosecuted for tax evasion and was eventually cleared of all charges.
  • Judy Garland owed the IRS $4 million, so they repossessed her home, after which she moved from hotel to hotel.
  • In 1982, Sophia Loren served 18 days in jail for fudging her taxes in 1974 – but almost 40 years later, the court actually decided she was in the right.
  • Infamous Madam Heidi Fleiss was sentenced to seven years in prison for tax evasion in 1996, but served 20 months.
  • In 1989, Al Sharpton was charged and later acquitted of tax evasion. In 2009, the IRS filed a lien against Sharpton of over $538,000 in back taxes.
  • Opera superstar Luciano Pavarotti was charged with tax evasion in 1999 and 2001.
  • In 2013, it was reported that Dionne Warwick owed over $10 million in back taxes to the IRS and the state of California. She filed for bankruptcy as a result.

I’d like to hear from you…

If you have an IRS issue, or just want to refer a friend, relative or client, I’d love to hear from you. I can provide a no-obligation, confidential consultation to help you solve your IRS problems.

Jeffrey Schneider, EA, CTRS, NTPI Fellow
Phone: 772.337.1040
738 Colorado Ave
Stuart, FL 34994

Thank you for your kind words

After several years of dealing with my wife’s illness, I began receiving letters from the IRS and they filed two liens. I contacted the national firms. Their quotes were like an al-a-carte menu. (extra for this, extra for that, etc..) By the time they finished, I might still owe the tax, plus, paid them about half of what I owed in fees. I attempted to solve the problem myself. Big mistake! I began researching local firms (accountants and tax attorneys).

I finally decided to hire Jeff. He is a small firm, local and we could meet face to face. Jeff was honest, explained the options and made no promises other than “He would do his best to resolve my issues”. I went with an Offer in Compromise in July 2014 which was accepted March 2015. I feel like I have my life back thanks to Jeff.

Chip W.

Q & A

Question: If I receive a CP2000 will that affect my current refund??

Answer:  It depends. If you owe back taxes to the IRS, they may keep your refund.

The CP2000 notice means that the income and/or payment information the IRS has on file for you doesn’t match the information you reported in your return.

You’ll need to:

  • Carefully read your notice. There may be a number on the notice. Complete the notice response form (if there is one, if not just follow the instructions).
  • If the information is wrong, contact the person or business reporting it and ask them to correct it and provide the IRS with the updated information.

For the foodies…Egg Roll Bowls

Jeff’s tax season stress eating has ended and he is back on the low carb “way of life.”

As you know we are fans of Asian food and Jeff always enjoys a good (and maybe greasy) egg roll.

This egg roll bowl recipe is super easy, especially if you use the coleslaw mix and matchstick carrots.

By the way, I prepared the Slow Cooker French Onion soup that I posted in the last newsletter and it was delicious! I beefed up the brandy a bit and added garlic.

Ta Ta for now,
Ali

You can find this recipe along other information on our Pinterest page.

SFS Tax Problem Solutions | info@sfstaxacct.com | 772.337.1040 | sfstaxproblemsolutions.com

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