Newsletter March 28, 2018

Inside this edition: Rapper DMX counting on rap to beat the rap at his sentencing, Do you suffer from FOF?, Owner of pizza restaurant slices his income on his tax return, Income tax trivia, IRS Q & A, For the foodies …, A bit of tax humor

 

March 28th, 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:

  • Rapper DMX counting on rap to beat the rap at his sentencing
  • Do you suffer from FOF?
  • Owner of pizza restaurant slices his income on his tax return
  • Income tax trivia
  • Your IRS questions answered here…
  • For the foodies …
  • A bit of tax humor

Rapper DMX ordered to serve 1 year in prison in New York tax fraud case; judge lets him hear his hit ‘Slippin” in court

Rapper DMX, whose real name is Earl Simmons, was arrested on July 13, 2017, on federal tax fraud charges. Prosecutors said he owed $1.7 million in taxes and engaged in a multiyear scheme to conceal millions of dollars of income from the Internal Revenue Service.

Embattled rapper DMX was sentenced today to one year in prison for tax fraud.

He was also given three years supervised release.

DMX counted on a little rap to help him beat the rap at his tax evasion sentencing.

Attorney Murray Richman said in a court document made public on Monday that he wanted to play a few DMX compositions at the sentencing in Manhattan.

DMX, 47, has been incarcerated since his bail was revoked in January by Rakoff, who scolded him for failing to obey bail conditions.

He pleaded guilty to a tax evasion charge in November, the culmination of a federal investigation that determined he had failed to pay taxes on millions of dollars in income amassed from 2002 through 2005 as his hip-hop records sold millions.

The government said DMX was trying to shift blame for his tax payment failure to managers and attorneys.

In papers filed last week, prosecutors called DMX’s crime brazen and sought a five-year prison sentence.

Do you suffer from FOF?

If so, we can help! Contact us today!

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

Owner of pizza restaurant slices his income on his tax returns

The owner of Tony’s Pizza House in Protem, MO, Tony E. Cowden, was sentenced to serve 18 months in federal prison with no possibility of parole after pleading guilty to five counts of tax evasion.

Cowden had listed his business and property for sale in 2015 and undercover agents, posing as potential buyers, met with Cowden. During the meeting, Cowden could not substantiate the sales price of $599,000 with the income on record, but told the agents that, “it saves me a lot of taxes.” He admitted to them that he pocketed all of the money from the sale of Keno-Lotto tickets and the cash received from his restaurant’s arcade games. He also offered his customers discounts on their meals if the bill was paid in cash.

The loss to the IRS was $91,037 and the state loss on income and sales tax $47,490 which he must pay in restitution plus $29,581 to the Social Security Administration for disability payments he was not entitled to receive.

A Bit of Humor…

A little boy wanted $100 badly and prayed for two weeks but nothing happened. Then he decided to write a letter to the Lord requesting the $100. When the postal authorities received the letter addressed to the Lord, USA, they decided to send it to President Clinton. The President was so impressed, touched, and amused that he instructed his secretary to send the little boy a $5.00 bill, as this would appear to be a lot of money to a little boy. The little boy was delighted with the $5.00, and sat down to write a thank-you note to the Lord. It said: “Dear Lord, Thank you very much for sending me the money. However, I noticed that for some reason you had to send it through Washington, DC and as usual, those jerks deducted $95.00”

Income tax trivia

Prior to 1943, in an effort to have a regular flow of income to the Treasury to help pay for World War II, paying income tax was on a yearly basis and the government relied on voluntary compliance.

To help people to learn about and pay their taxes, the government turned to popular culture by:

The cartoon character Donald Duck visited Washington and learned about taxes in a short film called, “The New Spirit”
Irving Berlin composed a song called, “I Paid My Income Tax Today”
At club appearances, popular singer Danny Kaye included songs about paying 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

“We have used SFS Tax and Accounting for over 25 years. They have always been the most professional and efficient tax team we have ever encountered and would never switch to anyone else. We follow them wherever they go. Over the years we have become like family. My husband and I would highly recommend them for all your tax and accounting needs. I guarantee you will be happy and never have to look any further!”
~ Fran P.

Q & A

Question: I owe the IRS about $9300.00 and I just heard about the Fresh Start program. What is it?

Answer:The IRS Fresh Start program makes it easier for taxpayers to pay back taxes and avoid tax liens. Even small business taxpayers may benefit from the Fresh Start program.

If you owe less than $10,000, generally the IRS will not file a lien notice. When a taxpayer meets certain requirements and pays off their tax debt, the IRS may now withdraw a filed Notice of Federal Tax Lien.

When a taxpayer meets certain requirements and pays off their tax debt, the IRS may now withdraw a filed Notice of Federal Tax Lien.

Some taxpayers may qualify to have their lien notice withdrawn if they are paying their tax debt through a Direct Debit installment agreement.

If a taxpayer defaults on the Direct Debit Installment Agreement, the IRS may file a new Notice of Federal Tax Lien and resume collection actions

For the foodies…5 Ingredient Fajita

Only 20 days left until the “official” tax season deadline.

This past weekend I prepared a
5 Ingredient Fajita in the crockpot. Jeff thought it was delish!

Yes, there were a few recipe changes: I added fresh garlic, jalapeno, and red and yellow peppers.

Super easy and it freezes well.

SFS shares other great recipes on our Pinterest page.

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

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