08 Nov Newsletter November 8, 2018
November 8, 2018
Inside this edition:
- Arkansas State Senator Get Caught With His Hand in His Campaign Funds Cookie Jar
- Where in the U.S. is Jeffrey Schneider?
- The IRS by the Numbers
- A Bit of Humor
- Spa Owner Must Like Prison Better Than His Resorts
- IRS Question & Answer
- For the Foodies… Chicken Cacciatore
2018 Top Practitioner Award
I am very excited to announce that on Saturday, October 20 I received the 2018 Top Practitioner Award from the ASTPS, the American Society Tax Problem Solvers where I was teaching and taking advance representation education.
About the award criteria:
The award was presented to an ASTPS member who consistently work in tax problem resolution demonstrating a dedication to ASTPS principles. Top practitioners work to enhance our industry’s image and maintain their skills through continuing professional education. They demonstrate a willingness to assist both colleagues and taxpayers.
Top practitioners are those that demonstrate intellectual curiosity and creativity in solving IRS problems. They inspire and motivate by action and example. They demonstrate professional and ethical integrity, ardent client advocacy, and dedication to doing what is right.
To download a PDF of Now What? I Got a Tax Notice from the IRS. Help! click here.
Coming in December 2018: Book two in the Now What Help Series
Now What? The IRS is Taking Everything I Own. Help!
Arkansas State Senator Gets Caught With His Hand In His Campaign Funds Cookie Jar
The indictment alleges that Hutchinson received $366,220 in campaign contributions from 2010-2017 and converted more than $200,000 for his personal use during that time by withdrawing $78,000 in cash, transferring $41,000 by wire transfer, and depositing $42,000 of contributions to his personal account. He also cashed five checks totaling $6,400. Hutchinson used the funds for a Caribbean cruise, a New Orleans vacation, tuition payments for his children, shopping sprees at jewelry and clothing stores as well as paying for everyday household expenses including groceries, gym memberships, and Netflix fees.
To conceal his misuse of campaign funds, Hutchinson underreported the amount received in his campaign filings with the Secretary of State. He also failed to report the funds he converted from his campaign to his personal accounts on his income tax returns. Hutchinson is the sixth lawmaker in Arkansas to have pleaded guilty or been convicted of federal charges in the past year.
The wire fraud charges carry a maximum sentence of 20 years in prison for each count, and the tax fraud charges have a maximum penalty of three years in prison, plus restitution, monetary penalties and a period of supervised release.
Where in the U.S. is Jeffrey Schneider?
14th-15th – Washington D.C.- IRSAC meeting
20th – Orlando – teaching “Taxation and the Gig Economy” to EAs and CPAs for the Orlando Chapter of the FSEA
29th – West Pam Beach – teaching Cannabis and Taxes to EAs and CPAs for the Palm Beach Chapter of the FSEA
The IRS by the Numbers
- The Gettysburg address is 269 words, the Declaration of Independence is 1,337 words, and the Bible is only 773,000 words. However, the tax law has grown from 11,400 words in 1913 to 7 million words today.
- The IRS sends out 8 billion pages of forms and instructions each year. Laid end to end, they would stretch 28 times around the earth.
- Nearly 300,000 trees are cut down yearly to produce the paper for all the IRS forms and instructions.
- American taxpayers spend over $200 billion, and 5.4 billion hours working to comply with federal taxes each year, more than it takes to produce every car, truck and van in the U.S.
- The amount of effort needed to calculate and pay federal income for individuals and businesses in the United States is the equivalent of a staff of 3 million people working full-time for a year.
A Bit of Humor…
“One difference between death and taxes is that death doesn’t get worse every time Congress meets.”
Spa Owner Must Like Prison Better Than His Resorts
Whittington of Scottsdale, AZ, who was previously sent to prison in 1987 for evading income tax and importing multiple tons of marijuana, was sentenced to imprisonment again in October 2018.
The former owner and director of the Springs Resort & Spa received a term of 18 months in prison for filing false individual tax returns. During his trial, court documents revealed that Whittington underreported his income for the tax years 2010-2012 by paying personal expenses from the business account totaling over $1 million. Also, from 2003-2010, Whittington failed to report $9.7 million in investment income generated from two offshore bank accounts in Liechtenstein.
The total loss to the IRS for these fraudulent returns is over $1.8 million, which he is ordered to pay as restitution to the IRS, and given a period of supervised release for one year.
Previously, Whittington was a competitive race car driver whose team won the 1979 24 Hours of Le Mans.
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.
Thank you for your kind words
“I have used SFS Tax & Accounting Services for many years now, and have found them to be reliable and always responsive to any questions I have had. They are always top-notch, friendly as well as professional and I would recommend them to any individual or business.”
Q & A
Answer: First, take a deep breath knowing there is expert help available to you. As part of the IRS’s audit process, they’ll ask you dozens of very innocent sounding questions, however many of these can be invasive as well as intrusive. The answers to which can “seal” your fate with the IRS auditor. However, there is a “right way” to answers these questions. The IRS’s mission is to determine the accuracy of your tax return, and they will leave no stone unturned to accomplish this. We have found that many taxpayers who decide to handle an IRS audit themselves wind up with a substantial bill and owe the IRS thousands of dollars. Auditors are trained to obtain information from you that in many cases is not required under the law. They get away with this because most people fear them and don’t know their rights.
Our clients generally NEVER meet or speak with the IRS. We handle everything for you, so you don’t have to take time away from your job or business to deal with all of the IRS’s paperwork. Just forward your audit letter to us, and we’ll handle the rest. Don’t let them walk all over you. We know the law, your rights, and we can help!
RUSTIC CHICKEN CACCIATORE
Jeff decided that he was tired of low carb foods and is now eating a more balanced diet – meaning pasta and bagels ( “skinny bagels”) are back in the table.
I am taking Dad home (who has rehabbed quite nicely) on Friday with a humongo cooler filled with enough food until we see him later in the month. I cook foods that will freeze well and are easy to heat up. My Dad LOVES anything Italian especially when it is served with pasta.
This recipe came out great. You may or may not know that I am an avid gardener and have a very lush herb and vegetable garden. So extra herb and fresh garlic are always added.