As published in the Winter Park/Maitland Observer, Thursday Jan. 3, 2012 Edition Offers... Read More »
Win big in the office Super Bowl pool? Don’t forget to tell the IRS
We have all done it. Participated in the office pool for the Super Bowl. I once won $250 a few years back by betting $20 on my team to win. Should I have reported those winnings to the IRS? Good question. According to Kay Bell, tax blogger for this recent article published by bankrate.com, I…
Read Full Article Categorized in: Accounting, Articles, Florida Tax Audits, Individual Tax Returns, IRS Audits, Penalties, Tax Advice, Tax Return Preparation, Tax Tips, Uncategorized, Voluntary disclosureIRS Paid Illegal Immigrants $4.2 Billion in Fraudulent Child Care Credits
Paul Caron reports that the rumor that illegal immigrants received $4.2 billion in fraudulent Child Care tax credit payments from the IRS is true: Following up on last week’s post, Illegal Immigrants’ Child Tax Credit Fraud Costs IRS Billions: FactCheck.org, Tax Credits for Illegal Immigrants: Q: Does the IRS pay billions in tax refunds to…
Read Full Article Categorized in: Credits, Tax CrimesDeath (by Suicide) and Taxes
Tony Nitti of Double Taxation has an interesting story about the tax evasion of a woman who sold suicide kits: [W]hile a 92-year old retired school teacher would never be confused with a legendary criminal of Capone’s ilk, Sharlotte Hydorn shared one thing with Big Al: it again took the IRS to put an end to Hydorn’s …
Read Full Article Categorized in: Tax CrimesFormer IRS Agent & Tax Preparer Orders Hit on Former Clients
Fox News reports that a former IRS agent whose tax preparation business catered to a wealthy clientele is accused of ordering at least two former customers killed as they prepared to testify against him on fraud charges: Federal prosecutors say the targets were key witnesses against Steven Martinez, 50, who was charged last year with stealing …
Read Full Article Categorized in: News, Tax CrimesIt’s Easy to Steal IRS Refunds
Two years ago we addressed the IRS’s flawed refund procedure in False Refund Schemes and Backwards IRS Return Processing Rules. Today, Jay Weaver of the Miami Herald gives a distressing update in Scammers Steal IRS Refunds with Ease: “We are seeing defendants once involved in other types of crimes [such as drug trafficking] getting involved in identity-theft schemes,…
Read Full Article Categorized in: Individual Taxation, IRS Procedure, News, Tax CrimesTIGTA: 82% of Investment Theft Loss Claims are Erroneous
Taxpayers and their advisors have good reason to want to categorize losses as theft losses rather than investment losses. Theft losses are treated as ordinary losses and are deductible in the year incurred.¹ Investment losses are treated as capital losses and are limited to the amount of capital gains plus $3,000. It is, therefore, not surprising that TIGTA has…
Read Full Article Categorized in: Announcements, Deductible Expenses, IRS Audits, NewsIRS Continues to Battle Tax Refund Fraud
WebCPA reports that the IRS increased the number of fraudulent tax refund claims it detected and stopped during the 2011 tax-filing season by 171 percent over the previous year: As of April 30, 2011, the IRS had identified 775,723 tax returns with $4.6 billion claimed in fraudulent refunds and prevented the issuance of $4.4 billion,…
Read Full Article Categorized in: IRS Audits, IRS Procedure, Regulation of Tax Preparers, Tax CrimesBeware of Foreign Tax Evasion Promoters
Fortunately, the Milwaukee Brewers surprising loss to the St. Louis Cardinals in the National League Championship Series has not blurred Milwaukee lawyer and blogger Brian Mahany‘s judgment in tax matters.¹ Mahany, proprietor of the law blog, Due Diligence, gives some excellent advice to prospective offshore investors in Looking to Evade Taxes? There are Still Plenty of People Willing to…
Read Full Article Categorized in: International Taxation, IRS Audits, Tax CrimesIncome is Taxable if it’s not Specifically Excluded
James Maule of Mauled Again has written an excellent post titled Expending Tax Dollars to Litigate Settled Tax Questions. In it he discusses the Eleventh Circuit’s affirmance, in Campbell v. Comr., No. 10-13677 (11th Cir. 2011), of an earlier Tax Court decision (134 T.C. No. 3 (2010)). The Tax Court concluded, following an earlier decision, that a…
Read Full Article Categorized in: Court Cases, Gross IncomeQuarter of a Billion Dollar Tax Refund Scam Busted by IRS
WebCPA reports that a federal grand jury has indicted 55 individuals for participating in a massive income tax fraud scheme based in Southern California that illegally sought over $250 million in tax refunds. Special agents in the Internal Revenue Service’s Criminal Investigation division began rounding up the defendants last Friday in a takedown termed “Operation Stolen…
Read Full Article Categorized in: News, Tax CrimesLawyer Pleads Guilty to Raiding Client Trust Fund & Filing Fraudulent Return
Law and More reports that attorney Jeffrey Abramowitz has pleaded guilty to stealing client funds and filing a fraudulent tax return: Here’s yet another situation which demonstrates the need for checks and balances in law firms for ensuring that attorneys don’t embezzle client funds. Former partner in a two-lawyer firm, Jeffrey Abramowitz, has pleaded guilty…
Read Full Article Categorized in: News, Tax CrimesA Tax Sucker Born Every Minute
Joe Kristan gives us the scoop on another case of absurd tax protester shenanigans (emphasis is mine): A pair of “professional astrologers” in California was enjoined last week from setting up sham trusts to conceal taxable income. That stuff doesn’t work, of course, but I liked this wrinkle: The pair is accused of having clients sign…
Read Full Article Categorized in: Absurd Tax Protester Arguments, Tax CrimesTwenty Fake Dependency Exemptions Generate $300K Tax Refund?
Blake Ellis of CNNMoney writes about a woman who fraudulently claimed 20 child dependents on her income tax return: Tax fraudsters are getting more creative — and, in some cases, more daring. But the IRS is making it harder for them to get away with their tricks. Late last week, a Los Angeles woman pleaded guilty…
Read Full Article Categorized in: Individual Taxation, News, Tax CrimesTIGTA Reports on More IRS Screw-Ups
The Treasury Inspector General for Tax Administration (TIGTA) has issued another report on IRS inefficiency, which, no doubt, will be met by the Commissioner’s demand for more funding (see Related Posts, below). TIGTA reports that some taxpayers received multiple refunds for their First-Time Homebuyer Tax Credit claims, while others changed the acquisition date of their homes on their…
Read Full Article Categorized in: Credits, IRS ProcedureRapper Ja Rule Gets 2 Years For Failing to File Tax Returns
Kelly Phillips-Erb reports that another hip hop rap artist has been convicted of tax crimes: Rapper and actor Ja Rule, whose real name is Jeffrey Atkins, was sentenced this week to more than two years in federal prison for failing to file income tax returns between 2004 and 2006. He had faced up to three…
Read Full Article Categorized in: Tax Crimes