Stanley H. Block’sIRS Times & Inquirer™Read About Taxpayers with IRS Problems & Learn Helpful Tips on How To End Them. |
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| Volume VIII, Issue 3 - www.mdtaxattorney.com |
Inside This Issue … |
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‘Survivor’ Winner Charged with Tax EvasionRichard Hatch had the physical ability and psychological cunning to win $1 million on the first season of CBS’s hit reality show Survivor. Now, he’s facing a much greater opponent than a deserted island: the federal government.Hatch, who became known to worldwide television audiences as a flamboyant and ruthless game player, has been charged with tax evasion. Federal prosecutors in Rhode Island allege that Hatch filed an income tax return omitting his more than $1 million in winnings and also failed to report $321,000 in earnings from WQSX-FM, a Boston radio show. Hatch, a 43-year-old resident of Newport, R.I., could face up to five years in prison and a $250,000 fine. The stakes are higher than ever for Hatch. Instead of Survivor host Jeff Probst, Hatch will face a federal judge. Howard Stern Sidekick Pleads Guilty to EvasionLee Mroszak, a Gulf War veteran, became known to radio audiences nationwide as “Crazy Cabbie,” a regular entertainer on the Howard Stern Show. Now, Mroszak will be known for something else: tax evasion.In December, Mroszak pleaded guilty in New York federal court to tax evasion, admitting that he did not file tax returns for the years 2001, 2002 and 2003. During that time, Mroszak won $100,000 in a five-round, amateur boxing match against fellow Stern entertainer “Stuttering John” Melendez in Atlantic City. That could be one of the final stunts for Mroszak. “Crazy Cabbie” likely won’t be returning to the airwaves anytime soon. He faces up to five years in prison for the tax evasion rap. Painter Gets Jail Time for EvasionDale E. Matheny, a 42-year-old painting contractor from Pembroke, Mass., received six month in prison and one year of supervised release after pleading guilty in November 2004 to failing to report more than $750,000 in income.The prosecutor told the court that the evidence would have showed that Matheny owned and operated a Pembroke business known as Dale’s Professional Painting Service, which performed interior and exterior painting services for residential and commercial customers. Matheny’s business generated approximately $130,000 in gross receipts in 1997, approximately $150,000 in 1998, $210,000 in 1999 and nearly $350,000 in 2000. The evidence would have also established that Matheny filed no federal income tax return for 1997 and then grossly underreported income for subsequent years. Exec Recruiter Sentenced For Filing False Tax ReturnAn executive recruiter in Wilton, Conn., has been sentenced to four years of probation for filing a false 1999 tax return for his corporation.Brian M. O’Connell, 50, is the operator of the O’Connell Group Inc. In 1999, after reading the book The Offshore Advantage by Terry Neal, O’Connell contacted Offshore Corporate Services and Neal for advice regarding protection of personal assets. With the assistance of Neal — and through the Nevis American Trust Company in Nevis, West Indies — O’Connell set up an illegal offshore trust. O’Connell avoided paying $143,718 in taxes. Due to his cooperation with the government, the judge departed downward from the sentencing guideline range of 15 to 21 months in prison. Calif. Man Admits To $67,000 in Tax EvasionJeffrey Scott Evans, a 53-year-old software engineer from Walnut Creek, Calif., pleaded to six counts of evasion. According to his plea, Evans admitted that, for tax years 1996 to 2000, he attempted to evade taxes by failing to file income tax returns or concealing his true income. In all, Evans avoided paying $67,000 in taxes. He faces up to six years in prison and a $250,000 fine.Woman Sentenced to 46 Months in Refund SchemeA Terra Bella, Calif., woman has been sentenced to 46 months in federal prison for orchestrating an illegal tax-refund scheme. The investigation was part of a crackdown on such illegal activity in California’s Central Valley.Elvia Ruiz, 37, admitted that she used Post Office boxes to receive refund checks from false returns that she prepared using fictitious names. According to Assistant U.S. Attorneys Mark Cullers, Sheila K. Oberto and E. Robert Wright, the case was part of a crackdown by the IRS on numerous tax refund schemes operating in the Central Valley. The schemes consisted of individuals who submitted false 1040 Individual Income Tax Returns to the IRS in order to receive false refund checks. To date, 16 people have entered guilty pleas in connection with the illegal tax refund scheme. “These cases represent a significant priority for IRS,” said IRS Special Agent Victor Song in a statement. “We are committed to working with the U.S. Attorney’s Office to combat false tax return schemes such as this.” Kansas Man Sentenced for Tax EvasionIvan G. Carney, 54, of Peck, Kan., was sentenced to 21 months in prison and fined $50,000 for tax fraud. Carney was found guilty following a three-day jury trial on two counts of tax evasion.According to trial testimony, Carney, a self-employed chiropractor, failed to file a tax return and concealed $48,347 in income during 1997. Testimony also showed that in 1998 Carney failed to file a tax return and concealed $146,489 in income in an effort to avoid paying $59,277. “The prosecution of individuals who seek to profit by fraudulently filing income tax returns with the IRS to evade tax is key to promoting fairness and equity in our tax system,” said IRS Special Agent Michael Yasofsky Jr. in a statement. Couple Failed to File Federal Tax ReturnA New England couple pleaded guilty to failing to file a federal income tax return. Richard Perrotti, 46, and Barbara Perrotti, 49, formerly of Hamden, Conn., pleaded guilty to failing to file a federal income tax return. The Perrottis earned $757,582 in 1997 but failed to file a return, avoiding $238,923 in taxes. They face up to one year in prison and a $25,000 fine.Dallas Man Indicted for Failing to File Returns for Five YearsA Dallas man has been charged with five counts of failing to file tax returns. David Lee Hitt did not file tax returns for years 1998, 1999, 2000, 2001 and 2002 when he received gross income in those years of $57,067, $106,619, $41,937, $160,870 and $116,793, respectively. If convicted, Hitt faces up to one year in prison and a $100,000 fine on each of the five counts. |
Learn how to avoid IRS problems and solve them if you find yourself with one!
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