Newsletter July 26, 2018

Inside this edition: Embezzled Money Must be Reported on Your Tax Returns, Karaoke Bar Owner will be Singing a Different Tune in Prison, A Bit of Humor, The IRS Reports a Surge in Email Phishing Schemes, Question & Answer, For the Foodies …

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July 26th, 2018

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

Inside this edition:

  • Embezzled Money Must be Reported on Your Tax Returns
  • Karaoke Bar Owner will be Singing a Different Tune in Prison
  • A Bit of Humor
  • The IRS Reports a Surge in Email Phishing Schemes
  • Question & Answer
  • For the Foodies …
“Most taxpayers do not realize that they have the right to be represented when it comes to dealing with the IRS.
Do not deal with the IRS alone.
You do not have to go it alone and you do not need a lawyer.
This is a major misconception from many that find themselves in deep waters with the IRS.” Quote from Chapter 3
Request your free copy of Now What? I Got a Tax Notice from the IRS. Help! by email info@sfstaxacct.com or call 772-337-1040.

 

In Now What? I Got A Tax Notice From The IRS. Help!, 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.

Embezzled Money Must be Reported on Your Tax Returns

New York Attorney Steven Etkind was charged in the District Court of NY on counts of conspiring to defraud the United States, corruptly endeavoring to impede the internal revenue laws, and tax evasion.
Etkind was a partner and the head of a New York law firm’s tax, trust and estates group and also a certified public accountant. According to the indictment, Etkind was named co-executor of the estate (valued at over $35 million) of a successful entrepreneur client who died in 2008.
The client’s “will” directed the creation of charitable trusts for the sole purpose of donating money from his estate to the charitable organizations. Etkind and a currently unnamed co-conspirator originally directed donations to legitimate organizations, and then set-up phony charities in which he was named co-trustee and used these to steal more than $3.5 million from the estate. Etkind used part of the money he stole to purchase a 6,300 square foot home in the name of someone else.
To cover his theft, Etkind filed false personal, corporate and charitable trust tax returns and made false and misleading statements to the IRS during an audit and examination.
If convicted, Etkind faces a statutory maximum sentence of five years in prison on the conspiracy charge, five years for each count of tax evasion, and three years for obstruction.

Karaoke Bar Owner will be Singing a Different Tune in Prison

Kae Wook Lee of Queens, NY, pled guilty in May 2018 to charges of failing to collect and pay employment taxes to the IRS.
Lee was the sole owner and CEO of Mona Lisa 7 Corporation which operated a karaoke bar in Queens. According to court documents, for the tax years 2011 to 2013, Lee deposited part of the bar’s earnings into shell accounts he created. From those accounts, Lee would withdraw money to pay his employee’s wages in cash – without collecting employment taxes or paying those taxes to the IRS. Lee would conceal the cash payments from his accountant and, in turn, filed false tax returns that underreported his employee’s wages. The IRS estimates their loss as approximately $612,500.
Lee is scheduled to be sentenced in September 2018, where he could face up to five years in prison, a period of supervised release, restitution, and monetary penalties.

A Bit of Humor…

“The present tax code is about 10 times longer than the Bible, a lot more complicated, and, unlike the Bible, contains no good news.”
—Don Nickles, former U.S. Senator

Virginia Couple Tries to Outsmart the IRS

and Gets Caught

Phishing is a scam where fraudsters send email messages to trick unsuspecting victims into revealing personal and financial information that can be used to steal the victim’s identity. To trick taxpayers into thinking the emails come from the IRS, they use the actual logo, so victims think it’s an official communication. These emails contain various scare tactics, and they ask the person to confirm personal information and verify their PIN information.

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 and his staff have helped our family through our tax troubles in the past. And I know he’ll continue in the future. – Don Musante

Q & A

Question: I owe the IRS money… how do I pay what I don’t have? They want more than I got. Can you get blood from a stone?

Answer:

Usually it is best to have your tax professional such as an Enrolled Agent (EA) guide you through the maze of options. An EA can also look at prior tax returns to see if you paid too much tax in a previous year, which can help lower your tax debt. An EA can also put together an offer in compromise, where you pay less than you owe (if the IRS agrees). These can be tricky, as the IRS will determine your financial situation based on their guidelines of what you should be spending in various categories.
“In other words, the IRS cash flow analysis creates phantom cash flow – money the IRS thinks you should have to pay them, but you don’t,” explains Jeffrey Schneider, EA, CTRS, NTPI Fellow explains in his book Now What? I Got a Tax Notice from the IRS. Help!
**If you have a general question that you would like answered in our next publication, email Jeffrey Schneider. Unfortunately we cannot provide answers to your specific problem.

For the foodies…

Jamaican Steamed Cabbage

We recently dined at Mo-Bay Grill in Sebastian with friends and the food was excellent. Each of us had a different dish, but, as this is my post, I will describe my outstanding ‘I’ Tal Vegetable Stew which contained the yummiest cabbage mixed with vegetables.
The next morning I went in search of a recipe for a similar dish and came across this recipe. Not quite like Mo-Bay’s, but it was good with the addition of lentils and vegetable stock instead of water.
The addition of Jerk chicken will round out the meal for Jeff.

Find the recipe, Jamaican Steamed Cabbage, on the SFS Tax Problem Solution Pinterestpage along with other pins and videos.

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

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