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IRS Times & Inquirer^™

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Volume VII, Issue 2   -   www.mdtaxattorney.com

► Alabama Man Indicted On Tax Charges

► Florida Chiropractor Sentenced For Income Tax Evasion

Former Inmate Collects $600,00 in False Returns

A federal grand jury in Tucson, Arizona, indicted Daniel G. Johnson, a 26-year-old former inmate at the Marana Community Correctional Treatment Facility, on five counts of filing false income tax returns. In all, Johnson allegedly received $600,474 in fraudulent refunds.

In November 2000, according to the indictment, Johnson filed two fraudulent returns with the IRS that reported false wages and withholdings. One claimed a refund of $2,129, while the other reported a $2,179 refund.

Then, in April 2001, Johnson filed three year-2000 returns claiming large amounts of false wages and gambling winnings, according to the indictment. Two of the refunds netted Johnson $207,686 and $378,988, respectively.

He faces up to five years in prison and/or a $250,000 fine on each of the five charges.
 

Tax Evasion Scheme Promoter Pleads Guilty

John F. Poseley pleaded guilty to his role in a conspiracy to defraud the United States by marketing tax evasion schemes through Innovative Financial Consultants. (Continued on Page 2)
(Continued from Page 1: Tax Evasion Scheme Promoter Pleads Guilty)
From 1995 to 2003, according to the indictment, the Tempe, Ariz.-based Innovative Financial Consultants sold more than 3,000 bogus “onshore” and “offshore” trust packages by claiming that taxpayers could avoid income taxes.

The 60-year-old Poseley, from Case Grande, Ariz., was a salesman for Innovative Financial Consultants, persuading people to buy offshore and onshore trust. Poseley admitted to the court that he told taxpayers that they could avoid taxes by placing assets into the trusts. Poseley also admitted that he ignored information that refuted Innovative Financial Consultants’ claims. He faces up to five years in prison and a $250,000 fine.

“Contrary to the assertions of tax scam promoters, you cannot magically avoid income taxes by diverting income to a trust,” said U.S. Attorney Eileen J. O’Connor. “People who promote or participate in such schemes are risking serious civil and criminal penalties.”
 

Kansas Woman Gets 46 Months in Prison

Huong-Thuy Pham, a 48-year-old woman from Wichita, Kansas, was sentenced to 46 months in prison without parole, to be followed by one year of supervised release, for not filing an income tax return and then filing false returns.

Pham admitted that she did not file her own federal income tax return for the year 1996 despite having earned $172,433.75. The Kansas woman then filed returns in 1997 and 1998 that claimed false credits, filing status, or amounts of income in order to receive refunds.

Man Pleads Guilty to $2.4 Million Tax Fraud Conspiracy

A San Marcos, Calif., man has pleaded guilty in U.S. District Court in San Diego to filing more than 620 false income tax returns claiming about $2.4 million in bogus refunds.

Moises Moran, along with his brother Esteban Moran, were charged with conspiracy and 15 counts of making false claims. According to the indictment, the Morans’ scheme involved fraudulent claims for refunds using the Earned Income Credit, a refundable federal income tax credit intended to assist low-income working families.

In court, Moises Moran admitted that he and his brother would obtain other people’s information and then file income tax returns that fraudulently claimed EIC refunds. As part of the scam, the brothers would attach false W-2 forms and then list dependents that did not exist. Refund checks were then sent to post office boxes the brothers controlled. The money was deposited into bank accounts and then withdrawn using ATMs in the United States and Mexico.

“These types of illegal refund schemes take advantage of our tax system and will be aggressively pursued by IRS Criminal Investigation,” said IRS Criminal Investigation Special Agent Denise L. Rubin.

 

IRS Question Corner …
 
Question: I’m in deep trouble. My finances are a wreck. I’ve filed tax returns every year, but as a self-employed professional in the struggling technology industry, I’ve allowed myself to get into the hole big time with the IRS. I owe $120,000 in back taxes for the years 2000 to 2002. My 2003 return will only add to that amount, I suspect. What can I do? I don’t want to go to jail.

Answer: Although I certainly understand your nervousness, you should know that you are not going to go to jail. Trust me. Since you’ve filed your tax returns every year, you haven’t broken any laws. People get behind in their bills, and the IRS knows this.

You have options. Since it sounds like you will not be able to pay back the $120,000 you owe in taxes, your best strategy will be to consult with a qualified tax professional who can help you file an Offer in Compromise. Believe it or not, since the IRS knows that chasing people across the country is no way to collect back taxes, the agency provides the Offer in Compromise program as a way for delinquent taxpayers to settle up and move on. Oftentimes, an offer can reduce your tax debt by pennies on the dollar.

You and your tax professional should first analyze your 2000, 2001 and 2002 tax returns to make sure you are not paying the IRS anymore than you should. After all, why give Uncle Sam a tip? Once that’s done, you can enter into negotiations with the IRS. For many of clients, an Offer in Compromise means they can reduce their tax debt, see the light at the end of the tunnel, and never have to change their lifestyle. There’s a good chance you may have similar results. Once you’ve made the offer, the IRS will look at your assets and determine how much of your debt you can pay. A qualified tax professional can often, as I said, reduce that debt to pennies on the dollar.

I solve problems such as your every day. That’s what I do — I’m an IRS Problem Solver. Although it’s easy to be intimidated by, even scared of, the IRS, you should know that taxpayers have many options. Want to hear about them? For a free, no-risk consultation, call my office at 410-727-6006.

SAN JOSE, CALIF., ATTORNEY INDICTED
ON TAX CHARGES
A federal grand jury has indicted Owen George Fiore, a 69-year-old attorney in San Jose, Calif., on four counts of income tax evasion.
According to the indictment, which is a result of an inquiry by IRS Criminal Investigations, Fiore allegedly attempted to evade income taxes due for years 1996 to 1999 by underreporting his income during those years by a total of $626,623.
If convicted, Fiore faces up to five years in prison and a $250,000 fine for each of the four counts.
 

CALIFORNIA WOMAN IMPRISONED FOR TAX REFUND SCHEME
A Terra Bella, Calif., woman was sentenced to 46 months in prison, to be followed by three years of supervised release, for her part in an illegal tax refund scheme.

Elvia Ruiz, 37, was the organizer and leader of a scheme intended to defraud the IRS. In court, Ruiz admitted that she filed false tax returns to obtain fraudulent tax refunds. She then used post office boxes and some people’s home addresses to receive those false refund checks. Ruiz told the court that the tax filings were made out in the names of fictitious people who in fact had no federal income tax withholdings.
 

ALABAMA MAN INDICTED ON TAX CHARGES
A Selma, Ala., man has been indicted by a federal grand jury for false statements on federal income tax returns.

Ronald Terry Regan was charged in a two-count indictment that alleges he made false statements regarding his income on his tax returns for the years 1997 and 1998. During 1997, the indictment alleges, Regan diverted $169,042 of his employer’s funds to pay personal expenses. He then reported just $35,440 in income. In 1998, Regan allegedly diverted $161,296 and did not report the income.
 

FLORIDA CHIROPRACTOR SENTENCED FOR INCOME
TAX EVASION
Steven Dolberg, a South Florida chiropractor, has been sentenced to 12 months and one day in prison, to be followed by three years of supervised release, after pleading guilty to one count of tax evasion. Dolberg admitted that he evaded about $244,000 in income tax from 1991 to 1993 by using check-cashing businesses in Broward County to conceal his business income.



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