Newsletter February 27, 2018

Inside this edition: The IRS Digs up Dirt on Excavating Business Owner, Neither Snow nor Rain nor Gloom of Night Stopped this Postal Carrier from his Tax Scheme, Utah Man Shoots Himself in the Foot by Not Reporting Illegal Firearms Sale, Lindsey Lohan Owes over $100K in Back Taxes, Your IRS Questions Answered Here, A bit of tax humor, For the Foodies …

February 27th, 2018

SFS has relocated to

738 Colorado Avenue Stuart, FL 34994
772-337-1040

Still serving clients by appointment only in Royal Palm Beach,
1402 Royal Palm Beach Blvd * 561-868-1868 is no longer in service

 

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

Inside this edition:

  • The IRS Digs up Dirt on Excavating Business Owner
  • Neither Snow nor Rain nor Gloom of Night Stopped this Postal Carrier from his Tax Scheme
  • Utah Man Shoots Himself in the Foot by Not Reporting Illegal Firearms Sale
  • Lindsey Lohan Owes over $100K in Back Taxes
  • Your IRS Questions Answered Here…
  • For the Foodies …
  • A bit of tax humor

Now What? I Got a Tax Notice from the IRS. Help!

An IRS Tax Notice Book Chapter Overview from Jeffrey Schneider. A Now What Video.

Jeffrey Schneider touches on each chapter of his new book in this IRS Tax Notice Book. Some of the topics are:

Let the buyer beware of credentials and the people they buy into.
What can a tax professional do for you that an online program can’t?
The Role of the Taxpayer, The Representative, and the IRS
Getting a love letter from the Internal Revenue Service
Conclusion – Your issues might take a while. Some assembly and patience required.

In this IRS Tax Notice Book, Jeffrey dispels a great deal of the myths and half-truths surrounding receiving a notice. The idea of receiving a letter from the IRS is not a pleasant one for anyone. What makes it worse is the confusion, the fear, the assumptions and the thoughts of all the worst-case scenarios that can make you feel like you have a tidal wave of stress. Schneider explains how…

getting notices should not be as life-threatening as you may think
there is life, sanity, and even money after receiving a notice
you have choices, and you do have some control

The IRS is not always correct! – Even if you owe more than you can pay, there are other options. Using the information presented in this book as tools of navigation, floatation, and even resuscitation can help you to better understand the legitimate letters and notices as well as letters from the IRS private debt collectors and the scammers that have no relation whatsoever to the Internal Revenue Service.

Available on Amazon

The IRS Digs up Dirt on Excavating Business Owner

Michael Collins, of McClelland, IA pled guilty in Federal Court to charges of tax evasion in December 2017.

From 2006 to the present, Collins owned and operated an excavating and trucking company earning over $5.5 million in gross receipts. In order to avoid paying taxes, Collins registered the business and bank accounts in the names of nominees. He filed fraudulent corporate returns which listed the nominees as the owners of his business, and instead of paying taxes, he used the money for personal expenses. The fraudulent returns claimed that the business had no gross income and his only source of income was from unemployment benefits.

In 2006, Collins was also part owner of a real estate development company, and earned over $289,000 but didn’t report the income on his individual tax returns. The IRS contacted Collins about the unreported income and Collins filed an amended tax return showing he owed the IRS more than $100,000, and did not pay the IRS.

Collins will be sentenced in May 2018, and faces up to five years in prison, supervised release, restitution and monetary penalties.

Neither Snow nor Rain nor Gloom of Night Stopped this Postal Carrier from his Tax Scheme

After being convicted by a jury in September 2017, Harold Coley of Columbus, GA was sentenced in December 2017 to 97 months in prison for conspiring to file fraudulent refund claims, mail fraud and embezzlement of mail.

Coley worked as a mail carrier for the U.S. Postal Service to a route in Columbus. During his trial, evidence showed that Coley was recruited by co-conspirator Keisha Lanier to participate in the stolen identity tax refund scheme. While on his route, Coley would compile a list of addresses of vacant buildings or addresses that did not exist and turn over the information to Lanier. Lanier would then obtain stolen identities from a third co-conspirator, Tamika Floyd, who worked for the Alabama Department of Public Health. Most of these stolen identities belonged to 16-17 year olds.

Lanier would then file fraudulent tax returns directing the IRS to mail the refund checks to the false addresses provided by Coley. The IRS issued over 1,600 refund checks totaling more than $2.5 million.

In addition to jail time, Coley is ordered to serve three years supervised release and to pay $901,351 in restitution to the IRS.

Co-conspirators Lanier and Floyd were previously convicted and sentenced to prison in 2015.

Utah Man Shoots Himself in the Foot by Not Reporting Illegal Firearms Sales

Adam Michael Webber from Salt Lake City, UT was sentenced to 4 years in prison for dealing firearms without a license, and filing fraudulent tax returns.

Webber was the sole owner of HK Parts, an internet gun parts business from 2007-2008. Although Webber did not have a license to sell firearms, he added them to his website and also sold them out of the basement of his residence. From 2009 to 2012, Webber also sold firearms through another company owned by another entity. Webber was caught by ATF agents after he sold weapons to undercover agents, once in a parking lot for cash.

Webber earned more than $10 million from 2007 through 2010 and only reported an income of $183,397 for those years on his individual tax returns. In 2010, Webber purchased a new home in cash for $670,000.

During a search of Webber’s home in 2012, agents found $180,000 in cash, a 70 lb. silver bar, silver coins and 300 firearms.

In addition to jail time, Webber will serve three years supervised release, $100,000 fine and previously paid restitution to the IRS in the amount of $1,817,887.

Lindsay Lohan Owes Over $100K in Back Taxes

Actress Lindsay Lohan reportedly is investigating whether her financial managers neglected to pay her federal income tax for three years.

The IRS has placed liens on Lohan, saying that the star owes $100,710.55 for 2010, 2014 and 2015. An unnamed Los Angeles management firm handled her financial matters. Financial management firms are typical for Hollywood stars and other high-income people.

Lohan and her family are now going through her financial records to try to determine the sequence that led to her tax bills going unpaid.

In 2012, the IRS had levied bills for unpaid federal taxes of $93,701.57 for 2009 and $140,203.30 for 2010, and seized Lohan’s bank accounts, It was reported at the time. Actor Charlie Sheen reportedly gave her $100,000 toward payment of her back taxes.

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

“Jeff Schneider is much more than just that guy who reminds you once a year of the dreaded April 15 deadline. If you need one tax advisor, it’s Jeff. You will find him becoming one of your friends too.”
~Ann Margaret Ulrich

Q & A

Question: What Do I Do If I Owe Taxes But Don’t Have the Money to Pay?

Answer:  First, don’t panic! Second, don’t delay in filing your tax return! You should always file your return on time to minimize your tax penalties. Even if you can pay nothing, you should file on time to avoid a greater tax penalty.

Then, try to figure out how much of your tax debt you can actually afford to pay now. You should always pay as much as you can in order to minimize penalties, because your penalties will be based on the amount you still owe to the IRS.

A Bit of Tax Humor

Recipe of the Month

Cod and Shellfish Soup

Tax season is very stressful and I am known to grab a chocolate bar or two or three.

We keep a jar of assorted chocolates in our reception area for our clients and I have had to replenish it several times already. I didn’t think Ali would notice but her eagle eye did. Busted!!!

This recipe is really light and tasty.

Ali tries to keep the carbs down at mealtime and we both enjoy this soup with a low carb dinner rolls from Sami’s Bakery. It becomes a “garlic roll” after being slathered in EVOO, rolled in grated cheese, parsley and chopped garlic.

Visit the SFS Pinterest page and find the recipe in “It’s All About the Carbs for Jeff”.

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

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