IRS Extends Long Arm of Income Tax Justice
No one is immune to the Internal Revenue Service’s aggressive
investigations of tax cheats, not even millionaire doctors and baseball
legends. In this era of hard-hitting enforcement, you could be next. Be
prepared.
By Stanley H. Block
The Internal Revenue Service
doesn’t play favorites when it comes to enforcement of tax law.
No one is immune.
And that includes big-name
doctors, well-connected politicians, and even a baseball legend.
Just take a look at the
recent headlines. In the past two months, the IRS has received major media
play as it’s taken down some famous — and infamous — tax cheats.
They include:
Xelan Inc. — The San
Diego-based financial planning firm founded in the mid-’70s by L. Donald
Guess has been battling the IRS over its alleged tax shelters. Most of the
company’s clients are doctors and dentist who could now face audits.
Currently, 220 doctors and dentists who used Xelan’s services have
received audit notices from the government. Additionally, the IRS has
taken Xelan Inc. back to court in an effort to the get the names of 2,000 more
of its clients.
Pete Rose — Baseball’s
all-time hit leader recently received a tax lien from the IRS, alleging
that he owes nearly $1 million in back taxes. The 63-year-old Rose, who
was banned from baseball after betting on sports, served five months in
prison on tax charges in 1990 and 1991. Despite the huge debt, Rose does
not face criminal charges this time.
Stephen J. Alexander — The
former mayor of Azusa, Ariz., recently pleaded guilty to tax charges
alleging that he underreported his income for the tax year 1997. As it
turned out, Alexander’s fatal mistake came from his big mouth. In 1997, he
claimed he received $14,885 in income. But the IRS learned that during a
court proceeding when he was under oath, Alexander said he earned well
over $200,000 that year.
Winston Wendall Borden — The
former Minnesota state senator was recently found guilty of not filing tax
returns for the years 2000, 2001 and 2002. Borden then pleaded guilty to
not filing returns for the years 1997, 1998 and 1999. The former senator,
who was previously president of the Minnesota Chamber of Commerce, faces
up to one year in prison for each of the six counts.
Of course, these are just
four of thousands of cases the IRS has prosecuted in the past two months.
These may seem unusual to those who still believe the IRS is a weak agency
unwilling to go after America’s most notorious tax cheats.
But that’s a false
reputation. Today’s IRS will go after anyone, maybe even you.
Stanley H. Block is a Maryland State Tax
Attorney and a member of the American Society of IRS Problem Solvers. You
can contact him at 410-727-6006 to obtain a free subscription to his newsletter
titled The IRS Times & Inquirer.
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