09 Sep SFS Tax Problem Solutions Newsletter – September 12, 2019
Inside this edition: Empire Star Terrence Howard Under Investigation for Tax Evasion, Tax Defier Might Be Protesting from Prison, Waco, Texas Tax Preparer Tries Wacko Scheme, I’ll Bet You Didn’t Know…, Taxes by Stephen Taylor, Your IRS Question & SFS Answer, What folks have to say about us, and for the For the foodies… Fireball Cinnamon Apple Cider Fall Cocktail
September 12, 2019
Inside this edition:
In the News…
- Empire Star Terrence Howard Under Investigation for Tax Evasion
- Tax Defier Might Be Protesting from Prison
- Waco, Texas Tax Preparer Tries Wacko Scheme
- I’ll Bet You Didn’t Know…
- Taxes by Stephen Taylor
- IRS Question & SFS Answer
- What folks have to say about us
- For the foodies…Fireball Cinnamon Apple Cider Fall Cocktail
- A Bit of Tax Humor
Call 877-355-8010 for more information about our services
In the News!
Empire Star Terrence Howard Under Investigation
According to court documents obtained by The Blast, a celebrity news site, the federal government is investigating Empire star Terrence Howard for criminal tax evasion and financial crimes. Also charged was his third wife Mira Pak and the company she owns, Universal Bridges Inc.
In April 2019, the State of California Franchise Tax Board filed a tax lien against Howard for $143,538 from income taxes owing from 2010. Howard also had a federal tax lien in 2010 for $1.1 million and in 2006 for $600,000.
However, Howard’s second ex-wife is claiming that Howard is using the pending investigation to avoid paying $1 million that she claims he still owes her from a 2013 settlement. Terrence recently filed documents in the divorce settlement case trying to move the date of an upcoming hearing because of the investigation opened on him. His ex-wife, Michelle Ghent, also claims that Terrence is using his criminal conduct to shield himself from her attempts to enforce the judgment.
Lawrence Martin Birk, from Colorado, was convicted of tax evasion by a federal jury in Denver, CO after a one-week trial.
Birk was the sole owner of Tarryall River Log Homes, LLC, and considered himself a tax defier. For more than 20 years, Birk didn’t pay federal income taxes. It wasn’t until the IRS started collection efforts, including visiting Birk at his home, that he hired a firm to prepare eight years of back taxes. Birk was not honest with the firm and omitted $400,000 of retirement income distributions that he funneled through a sham company. Even after filing these returns, Birk refused to pay what was owed. He sent the IRS threatening letters using frivolous tax arguments from known tax defier organizations such as the “We the People” foundation and the “Tax Honesty” movement.
The IRS took steps to seize the money from Birk’s bank accounts. After he was notified about the pending seizure, he purchased cashier’s checks to reduce his balance and impede the IRS’ ability to collect. Birk’s outstanding tax liabilities, including taxes, penalties, and interest, were over $2 million for the years 1998 to 2005. He has not filed tax returns or made any tax payments since 2006.
Sentencing is pending.
Tax preparer, Janell Lighter, from Waco, TX pled guilty to conspiracy to defraud the United States in federal court.
In the indictment and information presented at the hearing, it revealed Lighter assisted her co-defendant Stacey Anderson in preparing and filing false tax returns. Anderson operated her business out of her home in Waco. In 2013 and 2014, the payer filed returns that claimed false business items and/or education tax credits to fraudulently increase their client’s tax refunds from the IRS. Lightner and Anderson prepared returns for clients in Texas, Maryland and the District of Columbia. The tax loss caused by Lightner to the IRS is estimated at over $1.3 million.
In June 2019, Anderson also pled guilty to the conspiracy charge along with filing a false personal income tax return in 2014. Anderson admitted that her actions caused a loss of over $10 million to the IRS.
Both defendants face a maximum penalty of five years in prison for the conspiracy charge, as well as a period of supervised release, restitution, and monetary penalties. Both are due to be sentenced at the end of the year.
I got my paycheck
Half was almost gone
I bought a tank of gas
What’s going on?
I bought a load of bread
This can’t be for real
I pay the toll man
What is the deal?
I got a license
Here we go again
I live on my land
I’ll pay the man
When I die
Will I pay taxes still?
You better believe it
Out of your will.
Source: Reader’s Digest
The Rosetta Stone, the most significant relic of Egyptian
history, is a tax-oriented document. It was inscribed
around 200 B.C. during the reign of the boy-king Ptolemy
V. It was so important that it was written in three languages.
A large percentage of all ancient documents are tax records
of one kind or another.
When Americans started paying annual federal income tax in
1913, they would save money in anticipation of paying a lump
sum at the end of the years to the government. It wasn’t until
World War II when the government needed a more consistent
stream of income to fund the war, that taxes started being
withheld from paychecks.
Read about the Rosetta Stone.
Question: I owe $55,000+ in back taxes, and I think I can handle this myself. Is there any reason why I shouldn’t deal with the IRS on my own?
Answer: One of the worst things you can do is talk to the IRS directly without proper representation. Would you go to court without a lawyer? You are guilty until proven innocent when it comes to dealing with the IRS. The IRS is not on your side, and their primary goal is to aggressively collect money they think is theirs.
However, you do have rights as a taxpayer. One of those rights is the right to representation. If an IRS revenue officer or revenue agent shows up at your front door, will you know what to say or do? The IRS will ask you a series of very intrusive, intimidating questions in the initial interview with them, and how you answer these questions will dictate the fate of your case. Half of the referrals to the IRS’s criminal investigation division come from that “nice” revenue officer you’re having a conversation with.
A CPA or Enrolled Agent or an attorney who is also a tax resolution specialist can conduct these meetings on your behalf. They know how to navigate the IRS maze because they do this for a living, day-in, day-out. They know the “ins” and “outs” and know how to deal with the IRS, so your rights are protected. A tax resolution specialist also knows how to protect your income and assets from levy’s and seizures and get you the lowest possible settlement allowed by law.
The Now What Help! Series
Thank you for your kind words
How can I help you?
If you have a state or federal tax problem 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.
Fireball Cinnamon Apple Cider Fall Cocktail
As I write this article I am suffering from Hurricane Dorian fatigue. Labor Day marked the unofficial end to summer and silly as it might be, I have to put away most of my white clothes – well the white pants anyway and my favorite Guess white and pewter handbag. Yes, I know I live in Florida, and we can wear white all year round. But being a native New Yorker, it is just what we did. Guess we all have our own schtick. And I need a lovely adult beverage.
So fall is here, and I riffled through Pinterest until I found this lovely concoction, and it did the trick! (I didn’t bother with the cinnamon stick and peel)
I hope you enjoy it!
A Bit of Tax Humor…
A taxpayer received a strongly worded “second notice” that his taxes were overdue. Hastening to the collector’s office, he paid his bill, saying apologetically that he had overlooked the first notice. “Oh,” confided the collector with a smile, “we don’t send out first notices. We have found that the second notices are more effective.”
~The Unknown Comic