Stanley H. Block’sIRS Times & Inquirer™Read About Taxpayers with IRS Problems & Learn Helpful Tips on How To End Them. |
 |
| Volume VIII, Issue 6 - www.mdtaxattorney.com |
Inside This Issue … |
||||
Opa-locka, Fla. Mayor Admits Tax CrimeMyra Taylor, the suspended mayor of Opa-locka, Fla., near Miami, has pleaded guilty to a misdemeanor tax charge. She could face up to a year in prison.Taylor, together with her husband, John, operated several charter schools and a day-care center in South Florida. In June 2004, federal prosecutors indicted the couple, alleging that they used their schools’ money to pay personal expenses — including utility bills, home repairs and cars — then did not declare the substantial sums of money on their personal tax returns. Taylor, who was elected mayor of Opa-locka in 2003, has said she will not resume her public office. “She has voluntarily agreed not to be reinstated or seek reinstatement,” her lawyer, Ben Kuehne, told the Associated Press. Calif. Businessman Sentenced to Six YearsA Redding, Calif., businessman was sentenced to six years in prison following a two-week trial that found him guilty of 13 tax charges resulting in a tax loss of $256,000.The jury convicted Walter A. Thompson, 58, of two counts of filing false claims for refunds on his individual tax returns for 1996 and 1997, filing a false amended individual income tax return for 1998 and 10 counts of willfully failing to deduct, withhold, collect and pay over income and social security taxes from his employees at CENCAL Sales, an aviation flight bag manufacturing business. In addition to failing to withhold taxes from his employees’ paychecks, the jury found that Thompson filed false amended individual returns for 1996, 1997 and 1998. Thompson had filed returns for these three years, reporting over $300,000 in total income for the three years and substantial taxes. The amended returns purported to reduce the amount of income and tax in each year to $0 and sought refunds of approximately $65,000 for 1996 and 1997. Man Pleads Guilty to False ReturnJohn Delo Nichols, 63, of Phoenix, pleaded guilty to willfully failing to make an income tax return in 1999, even though Nichols had sufficient income.Nichols apparently received more than $565,000 in 1999. According to the plea agreement, Nichols admitted he had received a substantial amount of money as a result of his activities promoting the “Freedom Church of Revelation” (FCR) during 1999. Nichols admitted some of the money came as the result of “seminars” conducted to promote FCR. He faces up to one year in prison and a $25,000 fine. Calif. Woman Sentenced To 37 Months for Tax SchemeKaren Louise Younce, 54, of Grass Valley, Calif., was sentenced to 37 months in prison for her role in a large-scale abusive tax trust scheme.According to Assistant U.S. Attorney S. Robert Tice-Raskin, Younce previously admitted that, from 1992 to 2002, she helped impede the collection of more than $2 million in federal income taxes. Using domestic and foreign trusts she marketed, Younce helped a host of clients hide income from the IRS. In addition, Younce advised and assisted her clients in cycling their income through offshore bank accounts she controlled, then returning the income to the clients. Fla. Men Get Probation for Tax ChargesWalid Abulaban, 42, and Nidal Qasem, 45, both of Tallahassee, Fla., were each sentenced to three years of probation, 12 months of home confinement, and a $50,000 fine following convictions on four counts of filing false tax returns for the years 1997, 1998, 1999 and 2000. Abulaban and Qasem skimmed cash profits from convenience stores they own. These profits were not deposited into the corporate bank accounts for the stores and were never reported to the IRS as income.Brothers Tried to Evade Millions in Income TaxesTwo brothers in San Diego pleaded guilty to charges that they failed to report millions of dollars in income.Samer S. Gadalla and Sherif S. Gadalla, co-owners of Computer Depot Warehouse, both often received business revenue in cash, using the money for personal expenses. In fact, from 1998 to 2002, the brothers did not report millions of dollar in income. According to the plea agreement, the Gadalla brothers agreed that they will be sentenced based on the total amount of tax loss for the years 1998 to 2002. As a result, from 1998 to 2002, Samer Gadalla admitted to reporting only $103,958 when he actually earned $5,007,853 for that same period. Samer tried to avoid paying $2,006,905 in income tax. His brother, Sheirf, reported for the years 1998 to 2002 as income $29,831 when he actually owed $1,979,316 in income tax for that same period, resulting in a tax loss of $1,949,485. “The extent of this tax evasion was fairly breathtaking,” U.S. Attorney Carol C. Lam said in a statement. Both brothers face up to three years in prison and a fine of up to $100,000. Contractor Receives Prison for EvasionEdward R. Petrucci, 48, of Orange, Ct., was sentenced to two months, to be followed by six months at a halfway house, 12 months of home confinement, and three years of supervised release. Earlier, Petrucci pleaded guilty to one count of evasion, admitting that he tried to avoid paying more than $1 million in taxes.Petrucci is the owner and operator of several corporations that were in the business of insulation remediation and installation. Petrucci admitted that during the years 1996 to 1999, he used corporate funds to pay for a variety of personal expenses, including gambling debts ($1,745,000), home improvements ($594,716), and home furniture ($65,567). Although Petrucci has already paid a portion of his outstanding tax liabilities, according to the prosecutor, he still owes the IRS more than $2 million in tax, penalties and interest. St. Louis Woman Imprisoned for False Tax ReturnAndrea Shanta Smith, 28, of St. Louis, Mo., was sentenced to 21 months in prison and ordered to pay restitution of $38,888. Earlier, Smith pleaded guilty to five felony counts of filing false income tax returns. On three occasions, Smith filed false tax returns claiming $11,743 in refunds.Ariz. Man Charged For $0 Income FilingsDorvin J. Jones, 54, of Prescott, Ariz., was charged with filing false income tax returns the years 1998, 1999 and 2000. According to the indictment, Jones reported taxable in the amount $0 on each return. Jones allegedly knew he earned $72,008.11 in 1998, $96,858.44 in 1999 and $32,250.97 in 2000. If convicted, Jones faces up to three years in prison and a fine of up to $250,000. |
Learn how to avoid IRS problems and solve them if you find yourself with one!
 Forward this newsletter to a friend!Know someone who might be interested in this newsletter? Simply click the "forward" button on your email client and send this newsletter to them, or send them to http://www.mdtaxattorney.com/ newsletter.html where they can read the newsletters online! Make sure to encourage them to sign up for their own copy! Get a FREE subscription!Did someone forward this newsletter to you? If so, make sure to visit our website at http://www.mdtaxattorney.com/ newsletter.html and click the link in the middle of the screen to sign up for your own free copy each month! IRS Question CornerQuestion: I don’t have the time hear to explain exactly why, but let me just tell you that I owe roughly $106,000 in back taxes. The IRS sent me a letter yesterday. I’m freaking out. I don’t have that much money! What can I do?Answer: For most people, dealing with the Internal Revenue Service can be a positively frightening experience. And it should be. IRS agents have the power and ability to make your life extremely difficult — or even send you to prison. In fact, I’ve had clients sit in my office who were perspiring so heavily that the sweat ran down their brow like rivers. They were petrified! But I will tell you what I’ve told them: If you consult a qualified tax professional, you will quickly discover that, while an IRS problem isn’t fun, it doesn’t have to be a nightmare. Let’s take a quick look at your case. While your current estimate of $106,000 in back taxes might be accurate, the first thing a qualified tax professional will do is analyze your tax returns with a magnifying glass to make sure you are not paying even a cent more than you owe. Once that is completed, you and your qualified tax professional will meet with an IRS agent. You will likely have two options: 1) Installment Agreement — Similar to how a mortgage or car payment works, you will pay a small amount over time that will eventually pay off your debt. Like a car payment, the amount is substantial but not enough to drastically change your lifestyle. 2) Offer in Compromise — If you do not have the resources to pay off the debt, you will be a likely candidate for an Offer in Compromise. Under this plan, you will present the government with a compromise offer that generally amounts to pennies on the dollar! I deal with problems such as yours every day. I’m an IRS Problem Solver. For a free, no-risk consultation, call my office at 410-727-6006. PAST EDITIONSRead past editions of our newsletter online at http://www.mdtaxattorney.com/newsletter.html. I’d Like To Hear From YOU!Whether you’d like to avoid the IRS, contact the IRS, settle with the IRS or just want to refer a friend, relative or client, I’d love to hear from you. I would be happy to provide you or that special person you refer a no-obligation confidential consultation to explain every option available to solve IRS problems.UOIRSBLOCK@AOL.COM ACCOUNTANT@MDTAXATTORNEY.COM Thank You! Thank You!Thanks to YOU, the word is spreading. Thanks to my clients and friends who graciously referred me to their friends, clients and relatives last month! I enjoy building my business based on the positive comments and referrals from people just like you.I just couldn’t do it without you! |
|||
Stanley H. Block, P.A. & Associates
| 200 East Lexington Street Lower Suite Baltimore, MD 21202 |
(410) 727-6006 (888) 884-8686 Fax: (410) 539-6440 |
accountant@mdtaxattorney.com www.mdtaxattorney.com |