22 Aug SFS Tax Problem Solutions Newsletter – August 22, 2019
Inside the August 22nd edition: Utah Man Thinks the Laws Don’t Apply to Him, Software Company Owner will be Doing Hard Time in Prison, IRS Details Car Wash Owner’s Taxe, Be a Snitch and Earn Millions!, Your IRS Question & SFS Answer, What folks have to say about us, For the foodies…Tomato Basil Soup, A Bit of Tax Humor
August 22, 2019
Inside the August edition:
- Utah Man Thinks the Laws Don’t Apply to Him
- Software Company Owner will be Doing Hard Time in Prison
- IRS Details Car Wash Owner’s Taxes
- Be a Snitch and Earn Millions!
- IRS Question & SFS Answer
- What folks have to say about us
- For the foodies…Tomato Basil Soup
- A Bit of Tax Humor
CALL 877-355-8010 for more information
In the News!
Utah Man Thinks the Laws Don’t Apply to Him
For two decades Judge Paul Parker tried working with Dennis Kay Iverson, a man from Utah who owed back taxes. The Judge finally had enough and issued a bench warrant for Iverson’s arrest. Ten days later, Iverson was taken into custody.
Iverson owes the state of Utah $25,062 in back taxes, interest, and penalties. He represented himself in court and argued that the tax laws did not apply to him. Judge Parker sentenced Iverson to seven 1-15 years, and six 0-5 years, in prison on 13 felony tax evasion convictions. The terms will run concurrently, which means he will serve all of the sentences at the same time. At his sentencing, Iverson told Judge Parker, “This is an emergency war powers court, and I order you to release me. I will accept no form of punishment.”
Software Company Owner will be Doing Hard Time in Prison
The owner of a software firm in Carnegie, PA, Amarender Tiparthy, was sentenced in U.S. District Court to two years in prison for payroll tax evasion.
Tiparthy pled guilty to collecting payroll taxes, including Medicare, Medicaid and Social Security from his employees from 2010 to 2013 totaling over $2.2 million but didn’t turn any of the money over to the IRS.
While Tiparthy’s attorney argued that he paid some of the money back, U.S. Attorney Mary Houghton disputed that saying that Tiparthy had been the subject of IRS collection efforts for 15 years, and during that time built a $500,000 house which is considered lavish in Western Pennsylvania. Tiparthy’s attorney also requested that he be given home detention, which was rejected by the Judge. Attorney Houghton stated, “The 2.2 million dollar back taxes case makes this the largest payroll taxes case in the district and that by giving Tiparthy probation would send a horrible message to other tax cheats.”
In addition to prison time, the Judge ordered Tiparthy to pay the full amount owed to the IRS.
IRS Details Car Wash Owner’s Taxes
A couple from Missoula, MT pled not guilty to thirteen counts of conspiring to defraud the federal government. Joseph Baumgardner and his wife, Traci Baumgardner, along with their accountant, Daniel Burke of Florence, MT were accused by the federal government of skimming money from two businesses and failing to report that income on their tax returns.
The Baumgardner’s owned the Splash Car Wash and Pro Sweep Plus, an industrial maintenance company, and Burke, a CPA prepared their tax returns.
The indictment alleges that the Baumgardner’s skimmed cash from the car wash and with their CPA’s assistance, did not report the money on their corporate or individual returns.
Although earning over $5 million for the years 2011 through 2013, the total income tax paid for the same time period was $10,066. They also incorrectly identified personal expenses, such as a 2004 Freightliner motor home (calling it a trailer), a Nordic Heat ski boat (calling it a sweeper) and family trips as businesses expenses.
If convicted, the defendants face a maximum of five years in prison, a $250,000 fine and three years of supervised release.
Be a Snitch and Earn Millions!
The IRS Whistleblower Program, which rewards tipsters who turn in tax cheats a percentage of the money collected by the IRS, had their most lucrative year for rewards ever in 2018.
The IRS collected $1,441 billion in taxes, penalties, and interest on information provided by whistleblowers, which paid out $312 million in rewards.
Whistleblowers receive an average of 21.7% of the amount collected from the tax cheat they reported.
One tipster, who wishes to remain anonymous for obvious reasons, was awarded approximately $100 million for turning in a multi-national corporation.
The largest award ever went to a former private banker for UBS AG for turning the bank in, which admitted it encouraged U.S. taxpayers to hide assets abroad. Although he was convicted for the same crime and spent 30 months in prison, he was awarded $104 million in 2012.
Question:I own a small business, and to keep afloat, I did not send the IRS my employee’s withholding (941) taxes for a few years. How much trouble am I in?
Answer: Owing 941 payroll taxes is very different from owing personal income taxes. Not only can the IRS padlock the doors to your business, but they can also come after you personally, levy your bank accounts, confiscate your receivables, and seize your property. Scarier still is that it could turn into a criminal matter. Why? Because the money was already deducted from your employee’s payroll checks; so it’s not your money to begin with! The IRS will look at it as if you stole their money. Payroll tax delinquency is the IRS’s number one enforcement priority.
You need to get help from an experienced professional who deals with the IRS every day. We can assess your situation and figure out the best way to protect you and will take over all dealings with the IRS, so you don’t have to. Don’t let them take everything you’ve worked so hard for; call us today!
The Now What Help! Series
How can I help you?
If you have a state or federal tax problem 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.
Tomato Basil Soup
Is there a better comfort food than a grilled cheese sandwich with tomato soup?
Jeff and I both enjoyed this meal as kids and still do to this day. Of course, we no longer use white bread and American cheese, and the soup is not out of a can. The recipe I am sharing this month is easy to prepare and is very tasty. I hope you enjoy the soup as much as we do.
I know soup in August!? But this one is just so good you can have it year-round!
A Bit of Tax Humor…
A taxpayer received a strongly worded “second notice” that his taxes were overdue. Hastening to the collector’s office, he paid his bill, saying apologetically that he had overlooked the first notice. “Oh,” confided the collector with a smile, “we don’t send out first notices. We have found that the second notices are more effective.”
Please note Jeff will be out of the office in August on:
July 30-August 2
As always he is avaiable via e-mail but please be patient as he will be in education and may time time to respond.