07 Feb Newsletter February 7th, 2019
Inside this edition: Aretha Franklin’s Estate Gets No Respect from the IRS, Where in the U.S. is Jeffrey Schneider?, Investigation 2018 Annual Report, First Indictments in the Panama Papers Revelations, IRS Question & SFS Answer, For the foodies…Low carb “breadcrumbs”
February 7, 2019
Inside this edition:
- Aretha Franklin’s Estate Gets No Respect from the IRS
- Where in the U.S. is Jeffrey Schneider?
- Investigation 2018 Annual Report
- First Indictments in the Panama Papers Revelations
- IRS Question & SFS Answer
- For the foodies…Low carb “breadcrumbs”
Where in the U.S. is Jeffrey Schneider?
Tax Season- Stuart and Royal Palm Beach, Florida through April 2019
In the News!
Aretha Franklin’s Estate Gets No Respect from the IRS
Investigation 2018 Annual Report
The Internal Revenue released its annual report of criminal enforcement actions taken in the fiscal year 2018.
A major focus of Criminal Investigation (CI) was traditional tax cases, including international tax enforcement, employment tax, refund fraud, and tax-related identity theft.
CI initiated 2,886 cases in 2018, with traditional tax cases accounting for 73% of the total. CI is the only federal law enforcement agency with jurisdiction over federal tax crimes. CI achieved a conviction rate of 91.7% in fiscal 2018.
In 2018, CI established a new international tax and financial crime group. This group works to identify, investigate and recommend prosecution of international offshore tax evasion schemes, looking at U.S. citizen account holders who move their money offshore to avoid detection, and at foreign banks and financial institutions that facilitate U.S. citizens to hide their money offshore.
First Indictments in the Panama Papers Revelations
“Panama Papers” is the name given to a leak of more than 11 million documents in 2015, which detailed financial and attorney/client information from a Panamanian law firm and the wealth management firm of Mossack Fonseca showing possible tax evasion and money laundering throughout the world.
Four individuals were indicted on charges that include wire fraud, money laundering, conspiracy and conspiracy to defraud the United States.
The names of the four charged are: Ramses Owens, a lawyer who worked for Mossack Fonseca, who remains at large; Dirk Brauer an asset manager for Mossfon Asset Management, a division of Mossack Fonseca, who was arrested in Paris; Richard Gaffey, an accountant residing in Massachusetts; and Harald Von Der Goltz, a former U.S. resident living in London, who was arrested in December, 2018 along with Gaffey.
In the unsealed indictment, it charges that Owens, Brauer and Gaffey set-up complex entities which allowed their clients to hide and invest millions of dollars which wasn’t disclosed to the IRS. Also, the trio created new schemes to cover their client’s secret offshore bank accounts in Switzerland and other countries.
Evidence was obtained in early 2017, when one of their clients decided to cooperate with the Justice Department and a meeting was set-up between Brauer and an undercover agent posing as a financial advisor. During the meeting, Brauer proposed to have the undercover agent send his U.S. client’s money overseas and set-up a fake investment for them. Brauer then advised them to report the investment took a loss, and then after the undercover agent could move the money back to the United States without the IRS discovering it.
Questions and Answers
Question: I owe several years of back taxes but do not have the money to pay the IRS. I want to get them off my back and heard of something called an Offer in Compromise. What is it and how can it help me?
Answer: An Offer in Compromise is the IRS’ tax resolution debt settlement program. It’s a program for taxpayers who owe the IRS more money than they can afford to pay. It’s the IRS’s version of a “fresh start” when it comes to tax debt. If approved, the IRS accepts a lesser amount (sometimes a fraction of what’s owed) to settle your debt. However, it isn’t always easy to gain approval due to its strict criteria.
The IRS considers your income, assets, expenses, ability to pay, and whether paying the full amount would cause financial hardship. It’s important to remember that the IRS wants its money and will only accept an Offer in Compromise if it thinks it wouldn’t receive any money otherwise.
Your odds for acceptance increase significantly when you have an experienced negotiator dealing with the IRS, like a CTRS or an EA.
A certified tax resolution specialist (CTRS) is a tax expert who helps clients deal with tax issues and represents them before the Internal Revenue Service (IRS).
An Enrolled Agent (or EA) is a tax advisor who is a federally authorized tax practitioner empowered by the U.S. Department of the Treasury. Enrolled agents represent taxpayers before the Internal Revenue Service (IRS) for tax issues including audits, collections and appeals.
The Enrolled Agent status is the highest credential awarded by the IRS. The EA credential is recognized across all 50 U.S. states. Attorneys and certified public accountants (CPAs) are licensed on a state by state basis, and are also empowered by the Department of the Treasury to represent taxpayers before the IRS.
The Now What Help! Series
Defining and deconstructing the scary and confusing letters that land in your mailbox. Jeff defines and deconstructs the scary and confusing letters in a fashion that mixes attention to detail with humor and an intricate clarification of what is what in the world of the IRS.
The books are available in paperback and ebook on https://amzn.to/2LR55YR
A Bit of Tax Humor…
If you love something, set it free.
If it comes back, it will always be yours.
If it doesn’t come back, it was never yours to begin with.
If it just sits in your living room, messes up your stuff, eats your food, uses your telephone, takes your money, and doesn’t appear to realize that you actually set it free in the first place, you either married it or gave birth to it.
Either of which is probably tax deductible.
How can I help you?
If you have a state or 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.
Thank you for your kind words
Low carb “breadcrumbs”
Jeff always does very well on the low carb diet, and the weight melts away. I gained a few pounds over the holidays and vacation and thought I would give it a try. Bear in mind that I don’t eat meat and dairy is always iffy with my sensitive tummy. I have lost a few pounds, only three more to go and then it is back to my beloved oatmeal for breakfast.
Regardless of which diet I am on, the bread and bagels at Sami’s Bakery are just the thing when you are carb starved. Even though they are in Tampa, they ship.
The recipe I am sharing today is terrific for carnivores. I use the hot and spicy pork rinds for Jeff’s breading. Great for chicken tenders which I fry in the air fryer. Great meal!