Inside This Issue …
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Computer Exec Charged with Tax Evasion
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Former Democratic Fundraiser Makes Plea
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IRS Employee, Two Sisters
Sentenced
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Florida Restaurant Owners Charged With Income
Tax Evasion
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Stratosphere Subcontractor Gets Federal
Prison Time
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Former Municipal Judge Indicted as Tax
Evasion Promoter
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Louisiana Failed To Pay Tax On Income From
Gambling Biz
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Arizona Tax Protestor
Indicted
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Ct. Man Receives Home Confinement For Filing
False Returns |
Computer
Exec Charged with Tax Evasion
The president of a company that presents computer-based seminars and trade
shows has been indicted in Massachusetts for allegedly failing to report
substantial amounts of income.
 Ronald
Gomes, the 61-year-old president of Andover-based Digital Consulting Inc.,
allegedly diverted income he received from DCI to a bank in Bermuda in an
effort to conceal the money from the Internal Revenue Service.
According to the indictment, DCI, under Gomes’ watch, diverted $8 million
in income from 1992 to 1996 to a bank in Bermuda. The company then paid
Gomes $913,177 from 1993 through 1995 — income he failed to report to the
government.
If convicted, the computer executive faces five years in prison and a
$100,000 fine on each of his three counts of tax evasion.
Former Democratic Fundraiser Makes Plea
Mark B. Jimenez, a Democratic Party fundraiser, pleaded guilty in August
to tax evasion and election financing charges. According to an indictment
filed in April 1999, Jimenez tried to conceal $5 million in income from
his company, Future Tech International Inc., by diverting the money to
Kalisol, S.A., a sham company Jimenez created in Uruguay.
Jimenez manufactured invoices from Kalisol that he paid from Future Tech’s
account, thereby avoiding having to pay the taxes on the income. He
further instructed his employees to conceal the true nature of the
payments. Jimenez also pleaded guilty to disguising campaign contributions
to avoid regulations regarding donation amounts.
He faces up to five years in prison for tax evasion and another fives
years in prison for elections fraud.
IRS
Employee, Two Sisters Sentenced
Angie Abdussalaam, a 42-year-old IRS employee in Carrollton, Ga., thought
she could fool the agency for which she worked. She was wrong.
With the help of her sister, 46-year-old Belinda Walker and 35-year-old
Keila Owensby, Abdussalaam filed false tax returns in the names of others,
fraudulently collecting $95,000 total in tax refunds.
The sisters obtained names and Social Security by misleading people in
their community by telling them they would help them collect money from a
fake government agency.
Abdussalaam received one year in prison. Her two sisters were sentenced to
10 months in prison
Former
Municipal Judge Indicted as Tax Evasion Promoter
Three Phoenix, Ariz., residents have been charged in a 14-count indictment
that alleges the trio tried to conceal income from sales of a product
known as Millennium 2000 Reliance Defense Program. The product was in fact
a package that assisted Americans in avoiding having to pay federal income
taxes.
Among those indicted was a former Tolleson, Ariz., municipal court judge.
According to the indictment, former Judge John J. Rizzo, Carol A. Rizzo
and Cheryl A. Cully sold the tax-evasion product in the United States
through a company called Millennium Publishing. They then funneled
$301,700 in income to a bank in the Bahamas.
The indictment also alleges that John Rizzo and Cully, an employee of the
couple, provided false and misleading testimony to a federal grand jury.
In addition, John Rizzo alone was charged with aiding and assisting a
third party in the preparation of a false income tax return.
IRS
Question Corner …
Question: I’m a self-employed architectural consult who, amazingly,
has done well in the stock market. I cashed out a good chunk to buy some
property and a new car. Capital gains tax! Ugh! To top it off, I
discovered that my quarterly tax payments as an independent contractor
were poorly estimated. I owe the federal government nearly $85,000 in
income tax. Sure, I can pay it off eventually. But not today. What can I
do?
Answer: Your problem is actually common among self-employed
Americans who pay their own taxes. Many either underestimate or
overestimate drastically their annual income tax and, thus, pay less or
more than they should by year’s end. Obviously, that you cashed out a
number of stock options doubles your current tax dilemma, but trust me,
you have options.
Your best bet is to consult a qualified tax professional as quickly as
possible. He or she will examine your tax filing to ensure that they are
correct. Believe it or not, this process often saves taxpayers thousands
of dollars because it’s common for many Americans to pay the government
more than should be required. Why give Uncle Sam any more than he legally
deserves?
Once this process is complete, a qualified tax professional will discuss
your next option. This can range from an Offer in Compromise to an
installment plan. In your case, since you have the potential to pay off
your current tax debt over time, an Offer in Compromise most likely would
not be for you. However, an installment plan may be just the thing.
Under this option, you work out an installment plan with the IRS that
allows you to make monthly payments that will satisfy your debt over a
period of time. This works just like a mortgage or car payment, allowing
you to pay off your taxes without having to alter your lifestyle. Simple
as that.
I solve problems such as yours every day. That’s what I do — I’m an IRS
Problem Solver. I encourage you to set up an appointment with me. For a
free, no-risk consultation, please call my office at 410-727-6006.
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! |
|
FLORIDA RESTAURANT OWNERS CHARGED WITH INCOME TAX EVASION
The four owners of Los Ranchos, a popular restaurant chain in South
Florida, were charged separately with one count of tax evasion.
According to court documents, from 1997 to 2000, owners Julio Somoza,
Carlos Somoza, Juan Wong and Abraham Quant allegedly skimmed cash from the
daily receipts of the restaurants. Portions of the skimmed cash were
provided to each of the owners. They also received a document detailing
the payment.
Somoza also defrauded the IRS of approximately $411,000 in unpaid tax,
according to court documents. Additionally, Julio Somoza, Juan Wong, and
Abraham Quant allegedly each defrauded the government of approximately
$277,000 in unpaid tax.
STRATOSPHERE SUBCONTRACTOR GETS
FEDERAL PRISON TIME
Ronnie Lee Ford, whose company was a subcontractor for Las Vegas’
Stratosphere Tower, was sentenced to 57 months in federal prison after
pleading guilty to tax fraud, concealment of bankruptcy assets and tax
evasion
According to the plea, Ford admitted that he and his business his partner
cheated the IRS and lied about assets in a 1997 bankruptcy filing.
LA. WOMAN FAILED TO PAY TAX ON INCOME
FROM GAMBLING BIZ
A 39-year-old woman from Shreveport, La., pleaded guilty to two counts of
tax evasion after an investigation by the Louisiana State Police Gaming
Division led to federal tax charges.
According to court records, the gaming division investigated Mona Lisa
Herrington in 1999 after she applied to renew her video game gambling
license. It was discovered that Herrington had not filed an income tax
return in 1997 and had underreported her income for 1998.
IRS Special Agent Jimmy Sandefur testified that Herrington made $315,438
in 1997 and $343,434 in 1998 from video poker machines.
ARIZONA TAX PROTESTOR INDICTED
A federal grand jury returned a two-count indictment against Scott Francis
Creasia, alleging that he filed false returns for the years 1998 and 1999.
According to the indictment,
Creasia is a member of Anderson’s Ark and Association, which is believed
to be a multinational organization that promotes tax fraud scheme for U.S.
taxpayers.
If convicted, Creasia faces up to three years in prison and a $100,000
fine.
CT. MAN RECEIVES HOME CONFINEMENT FOR
FILING FALSE RETURNS
Donald W. Morris was sentenced to four months’ home confinement and fined
$2,000 after pleading guilty to filing false tax returns for the years
1994 to 1998. As part of the punishment, Morris will be required to wear
an electronic monitoring bracelet to ensure he does not leave his home. In
addition, Morris will be required to pay stiff penalties and interest on
his outstanding tax debt.
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 |
