14 Oct SFS Tax Problem Solutions Newsletter – October 10, 2019
Inside this edition:The IRS Exercises its Right to File Lien on Former Fitness Guru, Houston Attorney Tries to Outsmart the IRS and Loses, The Stars of “Chrisley Knows Best” Reality Series Prove—They Really Don’t!, Pediatric Office Manager Finds Out the IRS Isn’t Kidding Around, Your IRS Question & SFS Answer, What folks have to say about us, For the foodies…Apple Bundt Cake, A Bit of Tax Humor
October 10, 2019
Inside this edition:
In the News…
- Houston Attorney Tries to Outsmart the IRS and Loses
- A Few IRS Qirky Facts
- The Stars of “Chrisley Knows Best” Reality Series Prove They Really Don’t!
- Pediatric Office Manager Finds Out the IRS Isn’t Kidding Around
- The IRS Exercises its Right to File Lien on Former Fitness Guru
- IRS Question & SFS Answer
- What folks have to say about us
- For the foodies…Apple Bundt Cake
- A Bit of Tax Humor
Call 877-355-8010 for more information about our services
In the News!
Houston Attorney Tries to Outsmart the IRS and Loses
Jack Stephen Pursely, an attorney from Houston, TX, was convicted of three counts of tax evasion and one count of conspiracy to defraud the United States in September.
According to evidence shown during the trial, Pursely conspired with a former client to move more than $18 million the client had earned through his company, Southeastern Shipping. The company’s business bank account was held on the Isle of Man, where the untaxed funds were then transferred to the United States. Pursely helped to conceal the transfer of funds from the IRS by disguising the transfers as stock purchases in United States corporations owned and controlled by Pursely and his client.
So, Pursely received more than $4.8 million and a 25% ownership in his client’s business for his role in the conspiracy. From 2009 to 2010, Pursely failed to report and pay income taxes owed on these payments by withdrawing the funds as purported non-taxable loans and returns of capital. He used the money instead to purchase personal assets, including a vacation home in Vail, Colorado, and property in Houston, Texas.
A sentencing date is scheduled for December 9th, where he faces a statutory maximum sentence of five years on the conspiracy count, and five years for each count of tax evasion, plus a period of supervised release, monetary penalties, and restitution.
A Few IRS Quirky Facts
Commissioner of the IRS Was Convicted for Tax Fraud
Joseph D. Nunan, Jr, the IRS commissioner from 1944 to 1947, was sentenced to five years in prison and ordered to pay a fine of $15,000 for tax fraud. In 1933, Nunan began withdrawing large sums of money from his bank, fearing the bank would collapse, and kept the money at home. He later deposited the money in other banks. However, it was unclear if this was new income as it could not be tracked. Nunan also won $1,800 on a bet predicting that Harry Truman would defeat Thomas Dewey. On tax returns filed from 1946 to 1950, Nunan did not declare or pay taxes on fees he received for legal services he earned from his firm.
The IRS Has A Plan To Resume Tax Collection a Month After A Nuclear War
In 1989, the IRS updated its employee manual with information detailing the agency’s response to a nuclear war. According to the manual, the IRS will resume tax collection within 30 days of a nuclear attack. Tax collection efforts will be concentrated on areas that produce the most taxes. The manual also states that the staff is to focus on collecting current taxes because the widespread destruction could make it challenging to recover previously owed taxes.
Pediatric Office Manager Finds Out the IRS Isn’t Kidding Around
Terra Ferguson, from New London, NC, was sentenced to 14 months in prison after pleading guilty to one count of failing to collect, account, or pay for payroll taxes.
Court documents indicate that from 1992 through September 2016, Ferguson was employed as the office manager at a pediatric office, where she had complete control over the office’s finances. Part of Ferguson’s responsibilities included collecting, accounting for, and paying over to the IRS the payroll taxes, which were deducted from the employee’s wages.
From March 2011 through September 2016, Ferguson withheld approximately $78,937 in payroll taxes and an additional $35,472 for the employer’s share of employment taxes that should have been turned over to the IRS. Instead, Ferguson used the money to pay her personal credit cards, funded private business ventures involving a mountain cabin rental and bar, paid for vacations, and issued checks to herself for $1.4 million, all from the business’ bank accounts.
In addition to jail time, Ferguson will serve three years of supervised release and pay restitution for $374,101.
The Stars of “Chrisley Knows Best” Reality Series Prove—They Really Don’t!
Todd and Julie Chrisley, the stars of the USA Network reality show, “Chrisley Knows Best,” and their accountant, Peter Tarantino, were indicted in August 2019 on 12 counts of tax evasion, and bank and wire fraud conspiracy.
According to the indictment, the couple failed to timely file federal tax returns or pay income taxes for the period from 2013 through 2016. Additionally, the charges include defrauding many banks by obtaining millions of dollars in loans using false information provided to the lending institutions, including inflated account balances, fake invoices, and audit paperwork.
Todd Chrisley blames a disgruntled former employee, who the couple says was stealing from them, forging their signature and bugging their home, in the act of retaliation after he was fired. Chrisley claims that the employee not only was stealing from the family but, “Took a bunch of his phony documents to the U.S. Attorney’s office and told them we had committed all kinds of financial crimes, like tax evasion and bank fraud.” Chrisley went on to explain that, “We have nothing to hide and have done nothing to be ashamed of.” He says he has a lot of evidence to prove he and his wife Julie are innocent.
The IRS Exercises it’s Right to File Lien on Former Fitness Guru
Richard Simmons, known for his, “Sweating to the Oldies” workout videos, has been hiding out in his home for the past five years. He has tax liens on his business and property for $24,000. The IRS claims that Simmons owes this money for years of back taxes between 2007-2015.
Simmons disappearance years ago prompted his friends to contact the LAPD to perform a welfare check. In 2013, the police did make contact with Simmons, who said he simply wanted to take a break from public life. His status was such a mystery to some that there was a podcast series called, “Missing Richard Simmons” about his whereabouts.
Question: I’ve finally decided to seek help from a Tax Professional who specializes in Tax Problem Resolution. I want to start getting my paperwork together for the appointment; what will I need to bring with me?
The items to bring include:
The most recent IRS/State tax notices and collection letters;
Copies of your last two years of filed income (1040) tax returns;
A monthly household cash flow budget by expense category (list all outflows of money)
Bring your most recent paystubs with YTD info verifying income from all sources and all withholdings and payroll deductions;
If you are self-employed, an independent contractor, or small business owner, prepare a “rough draft” current profit and loss statement. If this is not possible, just bring your Schedule C from your most recently filed 1040;
Bring a list of any quarterly estimated tax payments made for the current year
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