Stanley H. Block’s…

IRS Times & Inquirer^™

“Read About Taxpayers with IRS Problems &
Learn Helpful Tips on How To End Them.”

Learn how to avoid IRS problems and solve them if you find yourself with one!

Volume VII, Issue 6   -   www.mdtaxattorney.com

Illegal Alien Jailed for Wire Fraud

A 27-year-old illegal alien has been sentenced to two years in prison after pleading guilty to wire fraud.

Mohammad A. Majid, of Gaithersburg, Md., obtained approximately $355,000 from the Indiana Department of Revenue by electronically filing numerous income tax returns using fictitious names. In April 2002, the Indiana Department of Revenue and the Federal Bureau of Investigations identified the fraud and traced the money to bank accounts Majid controlled.

Majid was arrested and prosecuted in Maryland. Following his two-year prison sentence, he will be deported.

Company, President Plead to Evasion

A Paradise Valley, Ariz., man and his company have pleaded guilty to tax evasion in federal court in Phoenix.

Edward Sucato, 47, admitted that he used his construction company, S Corp Construction Management (SCCM), to build two storage facilities.

Sucato admitted that he had SCCM pay the costs involved in constructing these storage facilities, and then deducted the costs on the company tax return. But the constructions costs actually represented payments to Sucato. He then did not report those payments as income on his personal tax return.

Additionally, Sucato took corporate checks and deposited them into an account for his personal use. In 1999, Sucato deposited $73,181.67, of which $58,215.00 should have been claimed as revenue for SCCM. These funds were placed into an account under the corporate name Canyon Plastering and Drywall, a Nevada corporation operating under SCCM. Also during 1999, $132,237.41 was withdrawn from this account for Sucato’s personal use. The income was never reported.

According to the guilty plea, SCCM underreported its taxable income by $798,311.36 on this return, resulting in a tax loss of $281,254.70. Sucato agreed in the plea agreement to make restitution of $674,498.16, the resulting tax loss incurred by Sucato and SCCM for the years 1997 to 1999. He faces up to five years in prison and/or a $250,000 fine.
 

Hawaiian Dentist Gets Jail for Tax Evasion

A practicing dentist in Hawaii has been sentenced to 21 months in prison after pleading guilty to tax evasion.

Victor H. Zuercher, Jr., 63, admitted to participating in a long-running tax evasion scheme. From October 1986 to April 2000, Zuercher filed false and fraudulent individual and corporate income tax returns to the United States and the state of Hawaii. The result was a combined tax loss of more than $200,000.

Zuercher’s assets were concealed through the purchase and operation of a dental practice listing the dentist’s sister as the sole shareholder, falsely attributing $136,000 of income as salary to his son, and giving false statements to an IRS collections officer.

'We the People' Tax Shelter Promoters Guilty

Seven Californians associated with a tax fraud group known as “We The People,” which promoted a bogus tax shelter scheme, were convicted in federal court in Los Angeles.

Lynne Meredith, 54, of Sunset Beach; Gayle Bybee, 56, of Sunset Beach; Gregory Paul Karl, 54, of Solana Beach; Teresa Manharth Giordano, 41, of Murrieta; Willie Watts, 45, of Murrieta; Betty Erickson, 59, of Windsor; and Nora Moore, 55, of Huntington Beach were convicted on charges that included conspiring to defraud the Internal Revenue Service, fraudulently using Social Security Numbers and failing to file income tax returns.

Trial evidence showed that from 1991 to April 2002, Meredith conducted seminars and sold books that led people to believe they could legally shield income and assets from taxation. Meredith and her co-defendants encouraged and assisted taxpayers by forming phony “pure trusts,” opening bank accounts with phony Taxpayer Identification Numbers, filing fraudulent income tax returns and encouraging taxpayers not to file income tax returns. Each charge they were convicted of carries a penalty of up to five years in prison.

IRS Question Corner …
 
Question: My current tax debt has swelled from $15,000 in 2000 to $79,550, according to my current 2004 tax filing. It’s time to take action. I hit some rough financial times, and I’d always expected to pay off my tax debt before now. Unfortunately, I never could. However, I recently landed a high-paying job, and though I can’t cut a check today, I could pay the tax debt over time. What can I do?

Answer:  If your current resources and employment allow you the opportunity to pay off this tax debt over time, your best bet would be an installment agreement. It’s designed for taxpayers in your situation.

Here’s how it works: First, a qualified tax professional will scrutinize your 2000 to 2004 tax returns to ensure that you have not overestimated your tax due. This process can often save taxpayers thousands of dollars. After all, why pay the IRS more than you’re legally required? Once an exact debt figure is calculated, you and your qualified tax professional can approach the IRS about entering into install agreement.

If the agreement is granted, you will then pay a monthly amount toward your debt that will allow you to pay it off over time. Think of it like a mortgage or car loan payment. It’s very similar: an amount substantial enough to pay down the debt but not so much that it disrupts your lifestyle in any major way.

Although it might not be an option, you should also consider talking to your qualified tax professional about an Offer in Compromise. Let’s say, for instance, you lose your current job and are subsequently unable to pay your IRS debt. In this circumstance, the IRS will often accept a pay-off amount that amounts to pennies on the dollar. For many taxpayers, it’s the best and only way to finally get out of tax debt.

I deal with delicate situations such as yours every day. That’s what I do — I’m an IRS Problem Solver. For a free, no-risk consultation, call my office at 410-727-6006.
 

CT. MAN JAILED FOR FAILING TO PAY TAXES
Francis R. Sablone, Jr., 55, of Old Lyme, Ct., pleaded guilty to willfully failing to pay taxes for the years 1992 and 1993.

According to the plea, Sablone owed more than $63,000 in back taxes and penalties. After failing to pay, Sablone, who is an attorney, sought to convince the IRS that he was incapable of paying the full amount owed.

He initiated an Offer in Compromise and convinced the IRS to accept approximately $18,300 for his tax liability and write off the remainder. During the process, however, Sablone did not inform the IRS that he was in the real estate development business and controlled the operation and assets of a number of real estate companies. What’s more, Sablone admitted that he concealed others assets, including a 40-foot yacht.

He faces up to one year in prison and a fine of up to $100,000.

ILL. MAN INDICTED FOR FALSE REFUNDS SCAM
Von A. Easley, 38, of Carbondale, Ill, was indicted for making false tax refund claims. The indictment alleges that the refunds were based on fraudulently prepared W-2 employee withholding statements. If convicted, he faces up to five years in prison.

ILLINOIS MAN GETS 24 MONTHS FOR TAX FRAUD
Milo M. Sullo, 40, of St. Clair County, Illinois, was sentenced to 24 months in prison for filing false income tax returns for the years 1999 to 2001. For each of those years, Sullo filed electronic returns that understated his total taxable income. Additionally, when questioned by the IRS, Sullo made a number of false statements, he admitted.

Thanks for the Kind Words!

“You and your staff worked very hard in helping me settle my case with the IRS. Your professionalism, courtesy, friendliness and hard work certainly made me a believer in your outstanding reputation as one of the best lawyers I ever dealt with! I thank you again. I once again highly recommend you and your firm to anyone in need of help in that field.”
- L. East