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 5 - www.mdtaxattorney.com |
Inside This Issue … |
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State Marshall Pleads Guilty to Tax ChargeA Connecticut state trooper has pleaded guilty to tax evasion, admitting that he underestimated income he received for the years 1997, 1998 and 1999.John B. McGuire, a 62-year-old former Deputy Sheriff in New London County and currently a State Marshal, pleaded guilty to a federal charge of making and subscribing a false tax return. According to court records, during the years 1997, 1998 and 1999, McGuire provided professional services in connection with legal proceedings, including serving legal papers and carrying out wage executions and evictions. McGuire underreported this income for those years, resulting in a tax loss of $45,803. “Individuals who are sworn to uphold the law have a special responsibility to [pay taxes],” said U.S. Attorney Kevin J. O’Connor. Water District Manager Jailed on Tax ChargeThe assistant general manager of the Northridge Water District, in Northern California, was sentenced to 21 months in prison after pleading guilty to tax evasion.Jerry Allen Ness, 62, of Sacramento, was also ordered to pay a fine of $5,000 and to serve supervised release after his prison term. Ness admitted as part of his plea that during this tenure as the NWD assistant general manager, he issued compensation for unused sick leave and vacation pay to its employees through accounts payable rather than payroll. As a result, no federal income taxes were withheld from this compensation, and no Form 1099s or other notifications were issued to the IRS. During that same period, Ness received approximately $119,627 in vacation “buy-back” payments and bonuses from NWD. In total, during this three-year period Ness successfully evaded paying approximately $36,143 in federal income taxes. In addition, Ness also admitted to participating in a scheme to defraud NWD by having NWD pay for personal purchases, which he charged to a water district credit card. Couple Sentenced for Not FilingRichard Perrotti, 46, and Barbara Perrotti, 49, a married couple from Connecticut, were sentenced to three years of probation and ordered to perform 300 hours of community service.On Dec. 10, 2004, the Perrottis admitted that from 1995 to 1998, they operated a business in Branford, Ct., called Old New England Financial Group. Many of the company’s loans were unsecured and in cash at usurious rates in violation of state law. Both Perrottis were previously prosecuted by the state of Connecticut for the illegal loan business. Calif. Man Sentenced To Three Years for False ReturnsA Stockton, Calif., man was sentenced to three years in prison for filing false tax returns for the years 1996 and 1997.According to court records, Batch underreported his 1996 income by $477,472 and overstated his 1997 business deductions by $791,238. Internal Revenue Service criminal investigators determined that the companies that supposedly issued suspicious receipts to Batch’s company did not exist. They also determined that the numbers generated from these receipts had been forwarded to, and used by, the Batch’s tax preparer to prepare his 1997 tax return. Ct. Man Pleads Guilty to Filing False ReturnMichael R. Murray, 56, of Fairfield, Ct., pleaded guilty to filing a false tax return. According to court records, Murray made material misstatements about deductions and expenses on the federal income tax returns he filed for the 1999 and 2000 tax years.Murray admitted that he overstated his deductions and overstated his expenses for 1999 and 2000. The total amount of overstated itemized deductions and overstated expenses was $130,607, resulting in a $36,186 tax loss. Mother and Son Charged in Tax Refund SchemeA mother and her two sons in Jacksonville, Fla., have been charged with operating a tax-refund scheme from a Florida prison.William Michael Koster, 31, Rolando Rafael Valencia, 25, and their mother, Noris Mercedes Keller, 54, have been charged with conspiracy to defraud the Internal Revenue Service and multiple counts of filing false claims for income tax refunds. They face up to 95 years in prison and a fine of up to $4.5 million. According to the indictment, from February to September 2003, Koster, Valencia and Keller operated a scheme to obtain fraudulent income tax refunds by preparing and filing false federal income tax returns in the names of Florida inmates. The indictment alleges that Koster, who was then an inmate at Okeechobee Correctional Institution, obtained the names and social security numbers of other inmates. Valencia then filed false tax returns with the IRS using the information Koster provided. In all, the indictment alleges, the defendants sought nearly $100,000 in fraudulent tax refunds. Pair Allegedly Tried to Use Stolen Tax Refund ChecksMichael Dale Pass, 43, of Inglewood, Calif., and Shone Danielle Harris, 40, of Long Beach, Calif., made their initial appearance in U.S. District Court in Denver on charges relating to the attempted laundering of a stolen tax refund check in California.According to a February 17 indictment, Pass and Harris received a stolen U.S. Treasury check in the amount of $474,150.26. Pass then allegedly contacted Centennial Precious Metals in Denver concerning a possible purchase of gold. Over the course of several weeks, Pass and Harris arranged to use the stolen Treasury check to purchase 1,408 gold coins from Centennial Precious Metals. If convicted, the defendants face up to 20 years in prison and a fine of up to $948,300. Hedge Fund Manager Convicted of FraudRandolph S. Bronte, 53, was convicted of five counts of tax fraud by a federal jury in San Francisco. Bronte, the manager of a private hedge fund, filed false federal income tax returns for the years 1998 to 2000. Bronte failed to report $4.8 million in income and evaded $1.5 million in taxes. Bronte faces up to five years in prison and a $250,000 fine on each of three counts.Ct. Man Pleads Guilty to Tax EvasionCharles H. Pankow, 37, formerly of Salisbury, Ct., pleaded guilty to tax evasion. According to court records, Pankow admitted that he evaded taxes for the years 1998 to 2001. Pankow, vice president of special projects at Skip Barber Racing School, did not file federal individual income tax returns for the years 1998 to 2001. He faces up to five years in prison and a fine of about $250,000. |
Learn how to avoid IRS problems and solve them if you find yourself with one!
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