25 Oct Newsletter October 25, 2018
October 25th, 2018
Inside this edition:
- The IRS Catches Restaurant Owner Cooking the Books
- Mental Health Company Owners Must have Lost Their Mind!
- New Jersey Man Teaches his “Clients” How to Cheat the IRS
- A Bit of Humor
- IRS Question & SFS Answer
- For the Foodies – NY Crumb Cake
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.
“Most taxpayers do not realize that they have the right to be represented when it comes to dealing with the IRS.
Do not deal with the IRS alone. You do not have to go it alone and you do not need a lawyer.
This is a major misconception from many that find themselves in deep waters with the IRS.”
– 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.
The IRS Catches Restaurant Owner
Cooking the Books
Chu Chuk Cheung, owner of a restaurant in Springfield, Illinois, was indicted by a grand jury on two counts of tax evasion and ten counts of structuring bank withdrawals to evade tax reporting requirements.
According to the indictment, Cheung, owner of the Osaka Japanese Restaurant, failed to report income he received from the restaurant of $376,976 in 2012 and $145,958 in 2013. In order to avoid his bank reporting transactions, Cheung would withdraw amounts less than $10,000, and it was shown he withdrew $9,000 on 10 separate occasions between August 2013 and September 2014. Cheung was also accused of failing to declare $187,911 of personal income in 2010 and $231,813 in 2011, although he was not charged.
If convicted, Cheung could face up to three years for each count of tax evasion, 10 years for each count of payment structuring, supervised release, restitution and monetary penalties.
Where in the U.S. is Jeffrey Schneider?
On October 17 – Port St Lucie Women’s Council of Realtors – “Making Taxes Less Taxing.”
October 19 – ASTPS – Las Vegas – teaching Advanced Representation Planning to CPAs, EAs and attorneys.
On October 25-26 – Russellville, Arkansas – teaching fellow Enrolled Agents about Cannabis and Tax, Taxation of Expats and the Tax Cut and Jobs Act for 6 hours.
Mental Health Company Owners
Must have Lost Their Mind!
Haydn Thomas from Durham, NC, pled guilty in federal court to one count of making a false statement relating to health care matters and one count of tax evasion. His business partner Catinia Farrington also pled guilty to one count of health care fraud and one count of tax evasion.
Court documents show that the pair, who owned the Durham County Mental Health and Behavioral Health Services, LLC, submitted false claims to Medicaid for services that were not performed. From 2011 through 2015, they received approximately $4 million from thousands of false claims.
Thomas and Farrington diverted the funds from the company to other business bank accounts and used the money to pay personal expenses. The funds were never reported on their income tax returns.
Sentencing will take place on February 2019. Thomas could face 5 years for making a false statement relating to health care matters and 5 years for tax evasion. Farrington could be sentenced up to 10 years for health care fraud and 5 years for tax evasion. Both also face a period of supervised release, restitution and monetary penalties.
Our Masot Has a Name!!
We are pleased to announce the winner of the “Name the SFS Tax Mascot Contest”, Lisa Gerard Braun. Lisa was presented with a Visa giftcard for $25.00.
Max is now official and was introduced to the public on Friday at the Treasure Coast Opportunity Network breakfast.
A Bit of Humor…
New Jersey Man Teaches his “Clients”
How to Cheat the IRSs
A federal grand jury in Camden, NJ issued an indictment to Kenneth Crawford, Jr, charging him with conspiring to defraud the United States Government by promoting a tax refund scheme, filing false claims and obstructing the internal revenue laws.
Crawford and unnamed co-conspirators were charged with executing a “mortgage recovery” tax fraud scheme; assisting client taxpayers to file false tax forms by falsely claiming that substantial amounts had been withheld and paid to the IRS. Crawford recruited and convinced clients, who were behind on their mortgage payments, many facing foreclosure, that they could recover, through their tax refunds, the mortgage debt they owed and paid to financial institutions. Crawford would charge a fee for his services equal to 25% of the refund issued.
According to the indictment, when the IRS discovered the fraud and attempted to recover the refunds issued, Crawford supplied his clients with false documents to send to the IRS.
The amount of fraudulent refund claims was $2.3 million, of which the IRS paid over $1.3 million.
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
“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
Answer: With the passing of the Tax Reform Act in December 2017, these expenses, sometimes referred to “tier 2” deductions, are no longer deductible. Other such expenses that are lost are job hunting expenses, tax preparation fees and hobby expenses.
For the foodies…
New York Crumb Cake
My Dad has been spending some time with us recuperating from a very nasty fall and if there is just one comment I can say about Dad is that he LOVES food.
He is a very big sweet eater, and two desserts that he particularly enjoys are rice pudding and crumb cake. Last week I used the leftover rice from the Chinese takeout to make a big dish of creamy rice pudding. Now that he is finished with that desert it’s onto his favorite, crumb cake.
Last time I looked at Entenmann’s Crumb Cake it was over $5.00, so I am baking. The crumb topping is the best part of the cake, and this recipe is over the top with yummy crumbs just as any good New York style crumb cake would be.
Enjoy the sweet treat… we sure will!