24 Jan Newsletter January 24th, 2019
Inside this edition: Where in the U.S. is Jeffrey Schneider?, 2018 Tax Tips, Pharmacy Owner Will Need Sedatives After Sentencing, Marketer’s Key Performance Indicator Scores a Zero with the IRS , Interesting Tax Facts, IRS Question & SFS Answer, For the foodies…Slow Cooked Lamb Shanks in Red Wine Sauce
January 24, 2019
Inside this edition:
- Pharmacy Owner Will Need Sedatives After Sentencing
- Where in the U.S. is Jeffrey Schneider?
- 2018 Tax Tips
- Marketer’s Key Performance Indicator Scores a Zero with the IRS
- Interesting Tax Facts
- IRS Question & SFS Answer
- For the foodies…Slow Cooked Lamb Shanks in Red Wine Sauce
Where in the U.S. is Jeffrey Schneider?
Tax Season- Stuart and Royal Palm Beach, Florida through May 2019
About the SFS Tax Problem Solutions App…
- Submitting your IRS notice/letter
- Ask Jeff a question about your tax problem
- Order the Now What Help! book
- New clients – request your Free tax resolution consultation
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- Find out more about us and how we can help you
- And more
2019 Tax Tip
In the News!
Pharmacy Owner Will Need Sedatives After Sentencing
Jerry Harper, Jr., the owner of Family Discount Pharmacy with several locations in Virginia, was sentenced to 41 months in prison for failing to account for, and pay, employment taxes.
From 1998 to 2014, Harper was responsible for collecting and paying employment taxes for the pharmacy chain. Although Harper withheld the taxes from his employee’s paychecks, he did not turn those taxes over to the IRS. In 15 years, Harper only filed one quarterly employment return with the Internal Revenue Service.
The amount of employment tax liability was more than $5 million. Harper admitted in court that he used that money to pay personal expenses, including $100,000 for his son’s pharmacy school tuition, $370,000 for real property in Virginia and North Carolina, made over $500,000 in stock investments and wired over $1 million to his personal bank account.
In addition to his prison time, Harper is ordered to serve two years supervised release, pay restitution in the amount of $5,069,555.73 and a fine of $25,000.
Marketer’s Key Performance Indicator Scores a Zero with the IRS
Craig Walcott of Monument, CO, pled guilty to one count of attempting to evade the payment of income taxes in court in November 2018.
Walcott owned and operated a multi-level nutritional supplemental marketing business and also owned and leased residential real estate. The IRS notified Walcott in April 2010 of an assessment of taxes and penalties of more than $450,000 for the tax years 2005, 2006 and 2007. Walcott tried to evade payment of his tax liability by transferring properties to nominee entities, using fictitious mortgages to encumber his property to conceal their equity and continuing to file false tax returns understating his income. Walcott did not file any income tax returns for the years 2012, 2013 and 2014.
As part of the plea agreement, Walcott agreed to pay $628,733 in restitution to the IRS. Sentencing is scheduled for February 25, 2019, where he could face a maximum sentence of five years in prison, supervised release and monetary penalties.
Interesting Tax Facts
- Since 2001, there have been more than 4.500 changes to the tax code, not including the Tax Cuts and Jobs Act of 2017, signed into law December 22, 2017.
- More than one-fifth of paper tax returns contain errors. The IRS reports that while the error rate for electronically filed returns is less than 1%, paper filers are 21 times more likely to make a mistake. Errors can cause tax returns to get audited or rejected, so you’re better off filing electronically and lowering your risk.
- A good 17% of workers violate the tax code when filing their returns. The IRS treats the majority of the violations as honest mistakes.
- Only 30% of households itemize deductions, and that amount is anticipated to be lower because of the new tax laws taking effect with the 2018 tax filing.
- IRS employees also break the law. A 2015 report showed that almost 1,600 IRS worker willfully evaded taxes over the course of 10 years.
Source: The Motley Fool
Questions and Answers
Question: I didn’t report my cryptocurrency gains on several prior year’s tax returns. What do I do? Am I in trouble with the IRS?
Answer: The IRS can go back up to three years to prosecute cases of tax evasion, and in cases where they find a substantial error, they can decide to go back up to six years or more.
The best idea is to amend your tax returns. It can be a very daunting task as you must accurately calculate how much you owe in capital gains for each year. You have to know what the fair market value of the cryptocurrency was at the time of the trade. If you have executed hundreds, if not thousands of trades over the years, this can quickly become an impossible task.
You might consider giving all of the necessary forms and supporting documents to your Advanced Crypto Tax Expert and Enrolled Agent to handle the amendment.
ACT-E a tax professional who has a deep understanding of cryptocurrency and blockchain technology and crypto taxation.
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…
Why do sharks not attack tax auditors?
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.
Slow Cooked Lamb Shanks in Red Wine Sauce
Prior to becoming a vegetarian many years ago, lamb was my favorite meat. Osobucco was one of my favorite meals and if I think back far enough I can remember the meaty succulence and spicy tang. This recipe has all that yummy goodness.
Give it a try and enjoy the warm comfort of a hearty meal.