Newsletter October 11, 2018

Inside this edition: American Flag Manufacturer Will Be Seeing Stars & Wearing Stripes, Strange Tax Facts, Alabama Woman Will Receive Jail Time Not for Embezzling but For Not Reporting it on Her Tax Returns, Bit of Humor, Tax Q & A, For the Foodies…  Baked Cauliflower Tots

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October 11th, 2018

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

Inside this edition:

  • American Flag Manufacturer Will Be Seeing Stars and Wearing Stripes After Indictment
  • Strange Tax Facts
  • Alabama Woman Will Receive Jail Time, Not for Embezzling but For Not Report it on Her Tax Returns
  • A Bit of Humor
  • IRS Question & SFS Answer
  • For the Foodies – Baked Cauliflower Tots

$$$ WIN A 25.00 GIFT CARD $$$

Our new Tax Problem Solutions Mascot was delivered, and we Need Your Help naming him!

1. Submit your entry or vote for the best name in the comments by CLOSE OF BUSINESS OCTOBER 15…TAX EXTENSION DEADLINE DAY!

2. Winner will be announced on October 16!

Winner gets a $25 gift card from us. Can’t beat that!

(Must be a Facebook page fan to win.)
SFS TPS Facebook Page

“Most taxpayers do not realize that they have the right to be represented when it comes to dealing with the IRS.

“The IRS is not looking out for any aspect of your best interest. They are a government agency. They are the world’s largest collection agency.”
Quote from Chapter 3

To download a PDF of Now What? I Got a Tax Notice from the IRS. Help! click here.

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.

Please review the book here

American Flag Manufacturer Will Be Seeing Stars and Wearing Stripes After Indictment

Richard Spencer, of Canton, Ohio was indicted by a federal court of 15 counts for failure to account for, collect and pay employment taxes.

Spencer, the owner of RS Sewing, which manufactures American flags, was responsible for the company’s financial operations. For W-2 employees, Spencer withheld federal income, Social Security and Medicare taxes but failed to turn the money over to the IRS. The indictment also alleges that Spencer misclassified a portion of his employees as independent contractors and he also withheld employment taxes. It was found in an audit in 2011 that Spencer improperly classified the workers and was fined as a result, but he continued to do the same thing.

According to the indictment, the amount of money Spencer collected but failed to pay the IRS, was over $162,000. If convicted, the sentence will be determined by the court after reviewing factors such as the defendant’s prior criminal record, his role in the office and characteristics of the violation unique to his case. A trial date is pending.

Strange State Tax Facts

 The Rhode Island individual income tax return form features emoticons. A smiley face appears on the “Amount Overpaid” (refund) line, while a frowny face is shown on the “Total Amount Due” line.

 Nebraska taxes the sale of illegal controlled substances. The state’s law says drug dealers must buy drug tax stamps at the rate of $100 per ounce of marijuana, $150 per gram of controlled substances, or $500 per 50 dosage units of controlled substances that aren’t sold by weight.

 Indiana has several strange food taxes. Marshmallow crème is tax exempt but marshmallows are not. Icing in tubes and containers of frosting are exempt, but cake decorations are not.

 Florida has a “greenbelt law” that before it was strengthened over the years was widely open to abuse. The law provided tax breaks for farms and ranchers, so property developers took to renting cows to avoid paying taxes while preparing their land for building. Even Disney World took advantage.
Source: Cheapism Blog

A Bit of Humor…

A nervous taxpayer was unhappily conversing with the IRS auditor who had come to review his records. At one point the auditor exclaimed, “We feel it is a great privilege to be allowed to live and work in the USA. As a citizen, you have an obligation to pay taxes, and we expect you to eagerly pay them with a smile.” “Thank God,” returned the taxpayer. “I thought you were going to want cash.”

Alabama Woman Will Receive Jail Time, Not for Embezzling but For Not Reporting it on Her Tax Returns

Alita Baker Edeker, of Valley, AL, pled guilty to 6 counts of wire fraud and 3 counts of filing false tax returns.

From February 2007 through May 2014, Edeker directed her company’s client’s payments to her own debit and credit cards she controlled. To conceal her crime from her employer, she made false statements and representations in the company’s books. The amount of funds embezzled was over $700,000, which she did not disclose on her tax returns.

Edeker could face up to 20 years in prison for each count of wire fraud, 3 years for each count of filing a false tax return, a period of supervised release, restitution and monetary penalties.

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 team helped us resolve a complex issue with the IRS. We continue to use SFS for all of our business and personal tax needs. They are extremely knowledgeable and helpful.”
Bob Zalewski – Twin Forks Flooring, Tile & Construction, Inc.

Q & A

Question: I’m currently separated from my spouse, who owns his own business, and we are in the process of getting a divorce. I have always filed jointly with my spouse, and now the IRS is sending me notices stating I owe $35,000. I have no idea how they are coming up with this amount as my spouse said he was paying the IRS.

Answer: You may be able to avoid this liability entirely under the IRS’s Innocent Spouse Relief rules. Under federal law, if an income tax return is signed by both husband and wife, both spouses are 100% responsible for the taxes owed. However, the law permits special consideration where a spouse cannot be held responsible for mistakes that are attributable to the other spouse.

If you meet the following criteria you may be able to apply for innocent spouse relief:

Your spouse didn’t report all their income, and you were not aware of it and had no reason to know about it when you signed the tax return; it would be unfair to hold you liable for the taxes owed due to your spouse’s error. If you feel you were deceived by your spouse or tricked into signing a return you thought was correct this will help your case too. There are many other ways you may be eligible for relief under the IRS’s innocent spouse rules, and we can help sort this out and determine the proper path for resolution.

For the foodies…

Ranch Cauliflower Bites

I really like tater tots, Jeff not a fan.

I am always watching my weight and cauliflower is my go-to vegetable. and is a natural substitute for potatoes.

I am not gluten sensitive so I used a more traditional breading, panko, garlic powder and parmesan cheese, the kind that is non-refrigerated.

An air fryer is a great option to the oven.

Tasty little morsels! Enjoy.

Find the recipe on the SFS Tax Problem Solution Pinterest page along with other pins and videos.

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

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