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Abusive Tax Evasion Schemes

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Examples of Abusive Tax Scheme Investigations - Fiscal Year 2009

The following examples of abusive tax schemes are written from public record documents on file in the courts in the judicial district in which the cases were prosecuted.

New Jersey Computer Consultant Sentenced for Using Sham Trusts to Evade Taxes

On June 2, 2009, in Newark, New Jersey, James Najarian, a computer consultant, was sentenced to 12 months in prison, to be followed by three years of supervised release, and ordered to pay a $3,000 fine. On February 17, 2009, Najarian, pleaded guilty to count three of a four count Information charging him with tax evasion. According to court documents, Najarian was employed as a computer consultant by SER Associates, LLC, a limited liability company registered in the State of Nevada, which Najarian owned. Through SER Associates, Najarian performed computer consulting services for LNS Systems, Inc., a company controlled by his sister. LNS Systems made payment via check to SER Associates for consulting services performed by Najarian. In an effort to conceal his personal income and evade the assessment and payment of tax, Najarian established and controlled two trusts, Hokee Consulting and YAR Group, as the sole partners of SER Associates, which functioned as mere shell entities to conceal Najarian's receipt of income by SER Associates. Najarian filed U.S. Partnership Tax Returns, Forms 1065, on behalf of SER Associates for tax years 2002 through 2005, in which he reported the income and expenses he had earned as a computer consultant, but attributed that income not to himself personally, but to the Sham Trusts. Najarian failed to file personal income tax returns for himself during the years 2002 through 2005, even though he had received income of over $473,000 for consulting services performed through SER Associates during that time period, which resulted in over $112,000 in federal taxes due and owing.

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Ohio and Michigan Tax Defiers Sentenced to Prison for Tax Offenses

On May 29, 2009, in Toledo, Ohio, Winfield Thomas, a resident of Carey, Ohio, and Jeanne Herrington, a resident of Parma, Mich., were sentenced to 30 months and 96 months in prison, respectively. In addition to jail time, both Thomas and Herrington were sentenced to three years of supervised release. In November 2008, a jury convicted Thomas and Herrington of conspiracy to impede the Internal Revenue Service (IRS). Herrington was also convicted of corruptly interfering with the administration of the internal revenue laws. Also sentenced was Chad Rickle, who pleaded guilty to conspiring with Thomas and Herrington. Rickle received a sentence of four months in prison, four months of home confinement, and three years of supervised release. According to the evidence presented at trial, Thomas and Herrington promoted and sold bogus financial instruments which they fraudulently stated could be used to pay tax liabilities of their clients. These fictitious financial instruments, referred to as 'Bills of Exchange' and 'drafts,' were purported to be worth thousands of dollars. The total amount of fictitious financial instruments related to the scheme was in excess of $28 million. Trial evidence indicated that Thomas began marketing and selling abusive trusts as estate planning vehicles. He instructed trust participants to file false income tax returns that were prepared by co-defendant Chad Rickle which unlawfully assigned personal property and income to the trusts and then illegally deducted personal expenses as fiduciary and other fees. After the IRS sent the trust participants tax deficiency notices, Thomas instructed participants to ignore IRS correspondence, resulting in IRS tax assessments and the initiation of collection activities. Thomas and trust participants also sent false and threatening documents to the IRS in response to its collection efforts. Following the assessments made against their clients, Herrington and Thomas promoted the preparation and submission of fictitious financial instruments to the IRS as purported payment of outstanding tax liabilities. Herrington instructed the trust participants to open and then quickly close checking accounts and to use the account and routing numbers for those closed accounts on the bogus 'drafts.' Additionally, Herrington submitted false Forms 1099 to the IRS in October 2006, shortly after she was first indicted for tax crimes, in an effort to obstruct the prosecution. These Forms 1099 falsely reported that various individuals associated with the prosecution, including a Tax Division attorney and an Assistant U.S. Attorney in Toledo, Ohio, had received substantial amounts of income from Herrington.

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Los Angeles Area Man Sentenced To Five Years in Prison for Tax Evasion

On May 28, 2009, in Los Angeles, Calif., Giancarlo Pertile, the former owner of Art Marble Design Inc., in Moorpark, Calif., was sentenced to 60 months in federal prison and ordered to pay a $75,000 fine. Pertile was convicted by a jury in January 2009 of five counts of tax evasion for the years 1998 through 2002. According to evidence presented at trial and at the sentencing hearing, Pertile did not report the profits from the operation of his business, Art Marble Design, on his personal income tax returns. As a result of his concealment of business receipts from his bookkeeper and his accountant, Pertile caused false and fraudulent corporate income tax returns to be filed with the Internal Revenue Service (IRS) which falsely understated his business income. Additionally, Pertile filed individual income tax returns for the years 1998 through 2002 that falsely understated his taxable income. According to evidence presented at trial, Pertile paid only $1,200 in federal income tax from 1998 to 2002 despite earning over $850,000 from the operation of Art Marble Design during the same time period. Instead of reporting the profits from the business on his tax returns, Pertile deposited a substantial portion of the business income into additional bank accounts that he concealed from his bookkeeper, accountant and the IRS. As a result of Pertile's conduct, he evaded the payment of approximately $247,000 in federal income tax between 1998 and 2002. At trial, Pertile unsuccessfully argued that his company's business receipts were not taxable because the company was owned by a "pure trust." Pertile also placed his home in the name of a ministry to conceal his ownership in the property from the IRS.

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Former Aegis Trust Counsel Sentenced

On May 14, 2009, in Chicago, Ill., John Stambulis was sentenced to 24 months in prison to be followed by three years of supervised release, and ordered to pay any outstanding taxes due. According to court documents, Stambulis, a Bridgeview attorney, was the chief trust counsel of Aegis, through which he allegedly assisted in the promotion, sale, establishment, and defense of Aegis trust systems. In June 2004, a superseding indictment charged Stambulis, along with several other defendants, for participating in a nearly decade-long scheme to market and sell sham domestic and foreign trusts through, now defunct, The Aegis Company. In February 2008, Stambulis pleaded guilty to conspiracy to defraud the U.S. by impeding the Internal Revenue Service.

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Former City Corporate Counsel Attorney Sentenced for Marketing Sham Trusts

On May 11, 2009, in Urbana, Ill., John Wolgamot was sentenced to 12 months and 1 day in prison for his role in a tax fraud conspiracy that marketed and sold sham trusts to shelter taxpayers' income from the Internal Revenue Service (IRS). In May 2007, a third superseding indictment charged Wolgamot, along with Brian Wasson and Joseph Starns, who died that year, with participating in marketing sham trusts that helped conceal taxpayer assets and income from the IRS. According to the indictment, Wolgamot was a business associate of Wasson and the late Joseph Starns in Midwest Alternative Planning, a business created to promote the Aegis scheme. The case stems from a broad federal investigation of sham trusts and business packages known as The Aegis Company of Palos Hills, Illinois. The executive director and founders of the now-defunct Aegis company were convicted of tax fraud conspiracy. In August 2008, pursuant to a sealed plea agreement, Wolgamot pleaded guilty to one count of aiding in the filing of a false tax return. Following his sentence, Wolgamot will be on supervised release for 12 months.

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Two Sham Trust Marketers and Former Congressional Candidate Sentenced

On April 30, 2009, in Peoria, Ill., three defendants convicted this summer of tax offenses were sentenced to prison terms. Kenton W. Tylman and Debra J. Hills, both of Charleston, Illinois, were convicted in July 2008 for participation in a tax fraud conspiracy that marketed and sold sham trusts and financial packages to shelter taxpayers' income from the Internal Revenue Service. Tylman was sentenced to five years in federal prison; Hills was ordered to serve three years in prison. A third defendant, Brent A. Winters, of California, who was acquitted of the conspiracy charge but convicted of filing a false tax return, was ordered to serve 12 months in prison. Evidence presented by the government at trial showed that beginning in 1995, Tylman sold "trusts" and related financial arrangements for the Aegis Company in Palos Hills, Illinois. In 1998, Hills joined Tylman in the sale and promotion of the "trusts." During 1999 and 2000, Tylman and Hills sold "trust" packages using the business names of Worldwide Financial Services and Worldwide Financial and Legal Association. Purchasers of the so-called "trusts" were charged as much as $40,000 for their services. Tylman and Hills received a percentage of the purchase price, as well as commissions and management fees. Winters, acquitted of the conspiracy, was convicted for filing a false U.S. Individual Income Tax Return for the 1998 tax year. The government presented evidence that Winters, an attorney who made an unsuccessful run for Congress in 1998, loaned $36,616.50 to his campaign fund when he was a candidate for the U.S. House of Representatives. Following his unsuccessful campaign, Winters claimed that he sold the uncollectible loan for $2,500 to "American Land and Mines Company," a trust controlled by Winters and his wife. Winters then reported a capital loss of $34,117 as a deduction on his tax return; however, the law does not allow for deduction of a bad debt created by the sale to a related party. Further, there was no evidence that American Land and Mines Company ever purchased the loan.

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Attorney Sentenced to Three Years in Prison, Fined $250,000 for Impeding the IRS

On April 17, 2009, in Salt Lake City, Utah, Thomas Wood, a practicing attorney from Cottonwood Heights, Utah, was sentenced to 36 months in prison and fined $250,000 for corruptly endeavoring to impede the Internal Revenue Service and failing to file federal income tax returns for two years. Wood was also ordered to pay $56,852 in restitution to the United States Treasury. According to the indictment and evidence presented at trial, from 1998 through 2002, Wood helped two individuals, Glenn Ambort and John Benson, hide millions of dollars in income. In those years, Ambort and Benson were awaiting trial in a federal prosecution for conspiracy to commit tax fraud. While assisting in their defense, Wood used several bank accounts that he held in trust to hide millions in income that Ambort and Benson were taking from the MyCor Investment Club. To facilitate the use of this income without drawing the attention of tax authorities, Wood used non-interest bearing domestic trust accounts to receive and disburse funds, including one in the name of The Family Foundation, an entity he formed to help support the Goodman family, a popular singing group at the time. Wood also opened up and managed the use of offshore debit card accounts in the Bahamas for himself and others. Evidence showed that Wood had not filed a tax return since the 1980s. In the two years for which he was prosecuted, 2000 and 2001, his gross income was more than $180,000 and $56,000, respectively. The income came primarily from investor funds under his control in his nominee trust accounts that he used to pay for personal expenses.

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Georgia Woman and Co-Conspirator Sentenced in Tax Conspiracy

On April 15, 2009, in Atlanta, Ga., Jacqueline Ann Demer, of Gainesville, Georgia, was sentenced to 63 months in prison, to be followed by three years of supervised release, and ordered to pay $315,829 in restitution and to pay a $15,000 fine. Her co-conspirator, Jerry Robert Lahr, of Hurst, Texas, was sentenced to 37 months in prison, to be followed by three years of supervised release, and ordered to pay $1,115,444 in restitution. In addition, Lahr has also filed corrected income tax returns through the current tax year. In December 2008, Demer was convicted by a trial jury on charges related to a scheme to impede the Internal Revenue Service (IRS) in its collection of income taxes. Lahr pleaded guilty in December 2008 to conspiracy to impede the IRS. According to information presented in court: Between December 2001 and 2006, Demer performed banking and clerical services for Lahr. Demer, using the alias "Jessica Dalton," mailed five false and fictitious obligations, captioned "Bond[s] to discharge attachment for debt," to the IRS in October 2003. These false bonds were submitted as purported payment of Lahr's tax liabilities, penalties, and interest for the years 1996 through 2000. Lahr had gross income totaling approximately $2,600,000 for tax years 1996 through 2003, but didn't file federal income tax returns or make any payments to the IRS for those tax years. Lahr and Demer conspired to conceal Lahr's assets, income, and expenditures through the use of bank accounts and shell "trust" entities, all in nominee names. The evidence at trial also established that Demer used at least 30 different business names and post office boxes in seven different locations, some of which were opened with a fraudulent identification card in the name of her alias, Jessica Dalton. Additionally, Demer served as the trustee for various shell entities set up to conceal Lahr's ownership of assets, such as real property and automobiles. Evidence also showed that Demer had not filed a federal tax return since at least 2002.

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Little Rock Attorney Sentenced for Aiding and Abetting Tax Evasion

On April 14, 2009, in Little Rock, Ark., Barry J. Jewell, an attorney, was sentenced to 30 months in prison, to be followed by three years of supervised release, and ordered to pay a $25,000 fine and to pay $4,202 to cover a portion of the cost of prosecution. Jewell was found guilty by a trial jury on September 19, 2008, of causing his clients to file a tax return with the Internal Revenue Service (IRS) under-reporting their actual income for the year by approximately $1.8 million. According to court documents, Jewell created a fraudulent business transaction to substantiate the false return, which resulted in a tax loss to the government of over $700,000. Jewell created a profit sharing trust in which to conceal income from the IRS.

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Former Senior Manager at KPMG, Former Partner at KPMG, and Partner in Law Firm Sentenced in Tax Shelter Fraud Case

On April 1, 2009, in Manhattan, N.Y. John Larson, Robert Pfaff, and Raymond J. Ruble, aka R.J. Ruble, were sentenced on charges stemming from a scheme to design, market and implement fraudulent tax shelters that were used to evade more than a billion dollars in taxes due by their tax shelter clients. Larson, a former senior manager at KPMG, was sentenced to 121 months in prison and ordered to pay a $6 million fine; Pfaff, a former partner at KPMG, was sentenced to 97 months in prison and ordered to pay a $3 million fine; and Ruble, a partner at the law firm of Brown & Wood, was sentenced to 78 months in prison. In addition to the prison terms and fines, Larson and Pfaff are to serve three years of supervised release; Ruble is to serve two years of supervised release. The Judge scheduled a hearing in June 2009 to determine restitution. All three defendants had been found guilty on December 17, 2008, following a ten-week jury trial, of multiple counts of tax fraud. According to court documents, Larson and Pfaff were the founders and partners in Presidio Advisory Services, which purported to be an "investment advisor" for various tax shelter products. Trial evidence showed that from at least 1998 through 2000, Larson, Pfaff and Ruble were involved in the design, marketing, and implementation of a tax shelter known as BLIPS. The defendants represented that BLIPS could be used to completely eliminate either the capital gains or ordinary income tax of tax shelter clients who had at least $20 million in income in that year, purporting to eliminate millions of dollars in taxes otherwise due and owing. The Court found, as relevant to sentencing, that all of the BLIPS tax shelters combined resulted in a tax loss to the U.S. Treasury of almost one billion dollars.

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CA New Home Tax Credit Going Fast

Sacramento – The Franchise Tax Board (FTB) announced today that the $100 million allocated by the state in new home tax credits will soon be gone.

As of June 17, 2009, FTB had received more than 9,800 applications claiming nearly $95 million. Because some of these applications are duplicates, revisions, or invalid, FTB plans to accept 12,000 applications. This will ensure enough valid applications will be available to allocate the full $100 million credit. However, FTB will only issue approved credit certificates until the $100 million is exhausted.

When 11,000 applications are received, FTB will update its Tax Credit for New Home Purchases web page at www.ftb.ca.gov each business day with the new totals. Once FTB receives 12,000 applications, the fax service will be disconnected.

This tax credit is available for qualified buyers who on or after March 1, 2009, and before March 1, 2010 purchase a qualified principal residence that has never been occupied. The buyer must reside in the new home for a minimum of two years immediately following the purchase date. To apply, an Application for New Home Credit must be completed by the buyer and seller within one week after the close of escrow and faxed by the escrow person to FTB at 916.845.9754.

To expedite the processing of applications, qualified buyers are reminded to: submit only one application per new home purchase, only send in the application after escrow closes, and complete the application carefully and accurately. Applications received before escrow closes will be denied.

FTB will continue to report the certificates issued on a weekly basis until the full $100 million has been allocated. FTB expects to complete processing all certificates in August. Each applicant will receive a notification indicating the amount of credit allocated or denied.

Enrolled Agent vs. Tax Attorney / Tax Lawyer

Dealing with tax problems entails a good amount of hard work and stress, which is why it is not advisable to deal with such problems on your own. It requires that you have a fair understanding not only of the taxation process but also of how the IRS operates. Trying to gain such understanding is quite stressful in itself; much more is attempting to apply it to resolve your tax issues with the Internal Revenue Service and get tax relief. The sheer complexity involved in taxation and tax problems is what drives a lot of individual taxpayers and businessmen to approach a tax lawyer for assistance. While it is commendable that these people accept the need to seek assistance with their tax problems, they don't always ask for help from the right tax relief professional. A tax attorney is not always the best person to seek assistance from when it comes to tax problems. Since it's not a legal problem, but a tax problem, the IRS and State simply wants to know when your delinquent tax returns are going to be filed and when & how your taxes are going to be paid. What you need is a professional advocate who has the knowledge of the enforcement and collection procedures of the IRS, the State Franchise Tax Board and who has the specialized experience to effectively resolve these tax issues in your best interest.

Profile of the tax attorney

This is not to say that tax lawyers are not suitable for any kind of tax problems. If you are being accused of criminal matters, tax evasion, tax fraud, or any other serious tax related crimes, then a tax lawyer is your best bet for defense. Tax lawyers are also the best people to seek help from if you or your company wishes to sue the IRS for any wrongdoing.

What exactly is a tax lawyer? Tax attorneys are attorneys-at-law who specialize in tax and tax related laws. They, like other kinds of practicing lawyers, holds a Juris Doctor degree and have passed the bar exam provided by the state where they hold practice. Aside from standing as counsel on your defense, a tax lawyer can also perform other functions such as provide tax advice and assist in tax preparation. There are, however, certain limitations to what a tax attorney can do for you. For one, tax lawyers are only allowed to practice in the state where their licenses were issued. Also, tax lawyers are not guaranteed to have a broad understanding of how the IRS operates - what a tax attorney can promise for certain is only understanding of tax laws of his respective state and the federal government.

Then again, you can by all means still hire a tax lawyer to help you with your tax problem. This move makes perfect sense if you are a big corporation or a rich individual taxpayer who would not miss paying upwards of $500 (and possibly much more) per hour plus all other costs - because that is how much good tax attorneys charge nowadays.

The more reasonable and appropriate option

In the case of the majority of individual taxpayers and businesses who have more plans for their hard earned funds than on spending them on extremely high attorney fees, there are other tax professionals that can provide the same or even better service than tax lawyers. On top of this list are Enrolled Agents; they are your professional tax advocates. Enrolled Agents are tax professionals certified by the IRS to represent clients in tax proceedings, hearings, collections, audits, appeals and other tax related scenarios. By a far cry, Enrolled Agents are the best type of tax professionals that individual taxpayers and corporations can approach for assistance with tax relief and tax problem resolution. This is because Enrolled Agents have the most extensive experience when it comes to dealing with the IRS and like attorneys, are knowledgeable with even the most complex of tax laws. So, the next time you are faced with any tax problem, save yourself from worry, complications, and high cost by choosing a qualified and experienced Enrolled Agent that specializes in tax relief and tax problem resolution to assist you.

For tax relief services, contact Mike Habib, EA. He is licensed to represent taxpayers in ALL 50 states, and specializes in tax controversy matters. Mike Habib fees are on a flat fee basis and very reasonable to work with.

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In face of tighter enforcement measures that the IRS is expected to use to strengthen its tax collection and monitoring policies, tax problems have become, if possibly, more stressful to deal with. Among truck drivers, in particular, the need to immediately address tax problems is more pressing than it has been in previous years. However, given the present economic climate, dealing with tax problems can prove hard for truckers, truck drivers. This is where tax relief for truck drivers plays an integral role. The IRS provides tax relief for truckers, provided that they certain law mandated qualifications and criteria.

Available tax relief for drivers

Truck drivers have at their disposal the same kind of tax relief available to all citizens of the United States. The first of these relief services is back tax return assistance. Back taxes are taxes accumulated from years of unfiled returns, delayed filings, or missing records. If left unattended, back taxes can cause major problems for a truck driver because he or she is likely to be considered evading his or her responsibilities. If you have a good amount of unfiled returns in your hands, you can set your record straight through services offering tax relief for truckers. Our firm, Mike Habib, EA, offer such service basically helps our clients to reconstruct tax records and prepare past due tax returns.

Another tax relief for truck drivers is installment agreement, which can be especially helpful for truckers with excessive tax debts. This type of tax relief service would allow a truck driver who is indebted with the IRS to pay his or her owed taxes through small installment payments. The amount to be paid for each installment and the repayment schedule would be based on the truck driver's current financial status. This setup, along with the amount and schedule, can be negotiated with the IRS given that the truck driver meets certain qualifications. If you are yet unfamiliar with this kind of tax relief for truck drivers, you can retain our tax professional services to help you explore it.

Truck drivers also have the option to get truck relief through offer in compromise or OIC. This is perhaps, the best kind of tax relief for truckers since it would allow them to pay less than what they actually owe the IRS in tax debt and back taxes. On the same note, OIC comes with the strictest qualifications, rules, and guidelines to ensure that only qualified truck drivers and tax payers in general are able to avail of it.

Related to offer in compromise is a tax problem resolution called penalty abatement. This is actually a step above OIC in that it opens the possibility of eliminating penalties on the tax debt if the taxpayer is able to present reasonable and justifiable cause explaining why he or she accumulated the tax debt in the first place. Some examples of reasonable and justifiable cause accepted by the IRS are family sickness, natural disasters, and other situations that are beyond a person's control.

Regardless of the type of tax relief for truckers that you can avail of, what is important is that you try and avail of one. Tax problems are hard burdens to live with. They are among the many number of things that you cannot live normally with. By seeking tax relief, you free yourself of tons of headache and worries. More importantly, you would no longer fear the IRS tax letters coming in, the phone ringing, or the doorbell ringing.

Knowing the right one

Before you seek tax relief for truck drivers, however, you must know what kind to of option is best suited for your situation. This is because every kind of financial situation requires a different approach in the same way that each kind of tax relief approach comes with requires different qualifications. It is best to present your case to a tax professional so he or she can advice you on which tax relief is most suitable to your position.

We represent truckers before the IRS in all 50 states. We can resolve your tax problem and settle your tax debt for the lowest amount allowed by law. Call Mike Habib today at 1-877-78-TAXES or CLICK HERE

Trucker tax relief and IRS tax problems resolution serving and representing truckers and trucking companies in all of the following states, counties, and metro cities, Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington D.C.. West Virginia Wisconsin Wyoming. AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY New York, Los Angeles, Orange County, Riverside, San Bernardino, San Francisco, Ventura, Lancaster, Palmdale, Santa Barbara, Chicago, Washington D. C., Silicon Valley, Philadelphia, Boston, Detroit, Dallas, Houston, Atlanta, Miami, Seattle, Phoenix, Minneapolis, Cleveland, San Diego, St Louis, Denver, San Juan, Tampa, Pittsburgh, Portland, Cincinnati, Sacramento, Kansas City, Milwaukee, Orlando, Indianapolis, San Antonio, Norfolk & VB, Las Vegas, Columbus, Charlotte, New Orleans, Salt Lake City, Greensboro, Austin, Nashville, Providence, Raleigh, Hartford, Buffalo, Memphis, West Palm Beach, Jacksonville, Rochester, Grand Rapids, Reno, Oklahoma City, Louisville, Richmond, Greenville, Dayton, Fresno, Birmingham, Honolulu, Albany, Tucson, Tulsa, Tempe, Syracuse, Omaha, Albuquerque, Knoxville, El Paso, Bakersfield, Allentown, Harrisburg, Scranton, Toledo, Baton Rouge, Youngstown, Springfield, Sarasota, Little Rock, Orlando, McAllen, Stockton, Charleston, Wichita, Mobile, Columbia, Colorado Springs, Fort Wayne, Daytona Beach, Lakeland, Johnson City, Lexington, Augusta, Melbourne, Lancaster, Chattanooga, Des Moines, Kalamazoo, Lansing, Modesto, Fort Myers, Jackson, Boise, Billings, Madison, Spokane, Montgomery, and Pensacola

It is very important for real estate professionals to act on tax problems like excessive tax debt, unfiled returns, back taxes, and self employment tax before these aggravate into expensive and potentially damaging problems. Tax problems the likes of those enumerated above can seriously hurt an individual or a company's reputation and record, especially with the Internal Revenue Service or IRS. So before these tax problems turn to costly taxing nightmares, it is essential that you seek tax relief allotted for realtors, real estate professionals, mortgage brokers, and loan officers.

The real estate industry and the IRS

Tax problems are an inescapable reality present in any business area or industry, especially in wide fields such as real estate and real property. As defined by the IRS itself, real estate businesses include those that are involved in property acquisition, conversion, construction, development, management, rental, brokerage, and leasing. Following this definition, the term real estate professional can be used to refer to real estate agents, mortgage brokers, landlords, property managers, developers, contractors, and even loan officers. Individuals and firms that fall under these categories are allotted a number of benefits and financial privileges by the IRS. These include certain tax exemptions, tax deductions, and tax problem resolution packages.

Some examples of tax relief for real estate related, especially landlords, are deductibles from advertising costs, property depreciation values, cost of insurance premiums, and professional fees paid to attorneys in cases of eviction. The mortgage interest paid for investment property and from credit lines related to the business also makes up a huge chunk of tax deductibles that landlords, mortgage brokers, loan officers, and other real estate professionals can avail of. These types of tax relief are especially valuable when faced with tax problems, particularly excessive tax debts. You should consult a professional tax advocate to help you sort out how these mandated deductions can be utilized to resolve you of your tax problems.

Real estate in the current economy

The real estate industry is one of the hardest hit by the current crisis plaguing the US economy. House prices fell tremendously in the past two years, which were likewise defined by various mortgage problems. As a result, a lot of real estate professionals, particularly loan officers and mortgage brokers, faced more tax problems in the last two years than they have in existence. Back taxes, late and delinquent unfiled tax returns, and tax debts are a pressing problem in almost any real estate firm and even among self-employed Realtors.

The current administration's plans to salvage the economy from its current dire state include several provisions to give tax relief for Realtors. These provisions and plans provide people in the real estate industry who are beleaguered by tax problems with more options for getting tax relief, especially for problems that were caused by factors beyond reasonable control of the people or firms involved.

Facing the problem

The IRS currently provides several options that offer tax relief for Realtors who deserve such relief. However, these options would not come knocking on your doorsteps, no matter how much you qualify for them. You need to act accordingly if you are to benefit from what the IRS currently offers the real estate industry. For one, you need to recognize what kind of tax problems you have on your hands. Straighten out your records to gauge how much tax you owe the IRS in terms of tax debt, unfiled returns, and back taxes. Knowing where you stand would give you good foundation from where to base your next move. In any case, that next move should involve a tax expert and preferably a professional tax advocate or enrolled agent. Having someone as knowledgeable in the tax arena as an enrolled agent working on your case would help you resolve your tax issues in no time.

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Realtor tax relief and IRS tax problems resolution serving and representing real estate professionals and real estate brokers, loan officers tax relief and tax help for mortgage brokers in all of the following states, counties, and metro cities, Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington D.C.. West Virginia Wisconsin Wyoming. AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY New York, Los Angeles, Orange County, Riverside, San Bernardino, San Francisco, Ventura, Lancaster, Palmdale, Santa Barbara, Chicago, Washington D. C., Silicon Valley, Philadelphia, Boston, Detroit, Dallas, Houston, Atlanta, Miami, Seattle, Phoenix, Minneapolis, Cleveland, San Diego, St Louis, Denver, San Juan, Tampa, Pittsburgh, Portland, Cincinnati, Sacramento, Kansas City, Milwaukee, Orlando, Indianapolis, San Antonio, Norfolk & VB, Las Vegas, Columbus, Charlotte, New Orleans, Salt Lake City, Greensboro, Austin, Nashville, Providence, Raleigh, Hartford, Buffalo, Memphis, West Palm Beach, Jacksonville, Rochester, Grand Rapids, Reno, Oklahoma City, Louisville, Richmond, Greenville, Dayton, Fresno, Birmingham, Honolulu, Albany, Tucson, Tulsa, Tempe, Syracuse, Omaha, Albuquerque, Knoxville, El Paso, Bakersfield, Allentown, Harrisburg, Scranton, Toledo, Baton Rouge, Youngstown, Springfield, Sarasota, Little Rock, Orlando, McAllen, Stockton, Charleston, Wichita, Mobile, Columbia, Colorado Springs, Fort Wayne, Daytona Beach, Lakeland, Johnson City, Lexington, Augusta, Melbourne, Lancaster, Chattanooga, Des Moines, Kalamazoo, Lansing, Modesto, Fort Myers, Jackson, Boise, Billings, Madison, Spokane, Montgomery, and Pensacola

Make any personal calls on that company cell phone? That's a "fringe benefit" of your job, according to a 20-year-old law, and the IRS is looking to collect.

The Wall Street Journal reports that the IRS wants to step up enforcement of the 1989 law, which holds that employees who make personal calls on a company cell phone are getting a "fringe benefit" from their employers--a benefit that should count as taxable income.

The law has been "long ignored" by employees and employers alike, according to the Journal, namely because most companies don't have the time or the inclination to tabulate exactly how many minutes you're on the phone with clients versus how often you're gabbing with friends and family.

But now, the IRS is floating a couple of proposals to make compliance easier--for employers, anyway. One would be to simply treat 25 percent of your company cell phone bill as a "fringe"--and therefore taxable--benefit, the Journal reports. Or, an employer could use "statistical sampling" to guesstimate how many of your cell minutes are work-related and which aren't.

OK, but what if you swear on a stack of bibles that you rarely, if ever, use your company phone for personal calls? That's fine, the IRS says--but you'll have to produce separate work and personal cell phone bills to prove it.

Think it's a crazy idea? Apparently the IRS is thinking it over and will make a decision by September, the Journal reports.

Meanwhile, guess who's on your side against the IRS? The big cell phone carriers, who (according to the WSJ story) are worried that companies will drop employee cell phone contracts if the IRS goes ahead with its proposal. (Instead, employers might simply reimburse you for business calls made on your personal phone.)

So, quick show of hands: How many of you have a company-issued cell phone, and if so, do you use it for personal calls? And should personal calls count as a "fringe," taxable benefit? Or should the IRS allow for (at the very least) "minimal personal use" of company phones, especially given that bosses often expect cell-toting employees to be in contact at all times?

For tax relief services, please contact Mike Habib by clicking HERE.

Outsourcing Payroll Duties Can Be a Sound Business Practice, But... Know Your Tax Responsibilities as an Employer

Many employers outsource some of their payroll and related tax duties to third-party payroll service providers. They can help assure filing deadlines and deposit requirements are met and greatly streamline business operations. Some of the services they provide are:

• Administering payroll and employment taxes on behalf of the employer, where the employer provides the funds initially to the third-party.
• Reporting, collecting and depositing employment taxes with state and federal authorities.

Employers who outsource some or all of their payroll responsibilities should consider the following:

• The employer is ultimately responsible for the deposit and payment of federal tax liabilities. Even though the third-party is making the deposits, the employer is the responsible party. If the third-party fails to make the federal tax payments, the IRS may assess penalties and interest on the employer's account. The employer is liable for all taxes, penalties and interest due. The employer may also be held personally liable for certain unpaid federal taxes.
• If there are any issues with an account, the IRS will send correspondence to the employer at the address of record. The IRS strongly suggests that the employer does not change their address of record to that of the payroll service provider as it may significantly limit the employer's ability to be informed of tax matters involving their business.
• Employers should ensure their service providers are using EFTPS (Electronic Federal Tax Payment System) so the employer can confirm payments made on their behalf. Everyone should use EFTPS and Treasury regulations require electronic payment for payroll taxes over $200,000 in a calendar year. Employers should register on the EFTPS system to get their own PIN and use this PIN to periodically verify payments. A red flag should go up the first time a service provider misses or makes a late payment. When an employer registers on EFTPS they will have on-line access to their payment history for 16 months. In addition, EFTPS allows employers to make any additional tax payments that their third-party provider is not making on their behalf such as estimated tax payments.EFTPS is secure, accurate, easy to use and provides an immediate confirmation for each transaction. The service is offered free of charge from the U.S. Department of Treasury and enables employers to make and verify federal tax payments electronically 24 hours a day, 7 days a week through the Internet, or by phone. For more information, employers can enroll online at EFTPS.gov, or call EFTPS Customer Service at (800) 555-4477 for an enrollment form.

There have been recent prosecutions of individuals and companies who have, acting under the guise of a service provider, stolen funds intended for payment of employment taxes. For more information, visit the Examples of Employment Tax Investigations FY2008 Web page.

Remember, employers are ultimately responsible for the payment of income tax withheld and both the employer and employee portions of social security and Medicare taxes.

ORLANDO MAN SENTENCED FOR $181 MILLION PAYROLL-TAX FRAUD

Orlando, Florida - United States Attorney A. Brian Albritton announces that U.S. District Judge John Antoon, II, today sentenced Frank L. Amodeo (age 48, of Orlando) to 22 years and six months in federal prison for conspiring to commit wire fraud, to obstruct an agency proceeding, and to impede the Internal Revenue Service (IRS); failing to remit payroll taxes; and obstructing of an agency proceeding. The Court ordered Amodeo to forfeit more than $1 million seized from various accounts, three homes, several luxury automobiles, commercial real estate, a Lear Jet and his corporations. The Court also imposed a money judgment of approximately $181 million, which is amount of the stolen payroll tax funds. Amodeo had pleaded guilty on September 23, 2008.

According to court documents, Amodeo, and his co-conspirators controlled several companies, including multiple employee leasing companies or PEOs (professional employee organizations). They conspired to absolve themselves and the companies they controlled of the responsibility for existing payroll tax liabilities and to divert payroll tax funds paid by the PEO clients to the PEOs that Amodeo and his co-conspirators controlled.

A number of companies that Amodeo and his co-conspirators controlled played a part in the scheme, they included Mirabilis Ventures (Mirabilis) and affiliates of Mirabilis, AEM, AQMI Strategy Corporation, Common Paymaster Corporation, Nexia Strategy Corporation, Presidion Corporation, Presidion Solutions, Wellington Capital Group, and various other companies.

During an IRS attempt to ascertain and collect the payroll taxes, Amodeo intentionally misled the IRS concerning the unpaid payroll taxes, which allowed the unpaid payroll taxes to increase to significant amounts.

Amodeo also knowingly failed to pay approximately $181 million in payroll taxes, including approximately $129 million in FICA and withholding taxes.

This case was investigated by the Internal Revenue Service. It was prosecuted by Assistant United States Attorneys I. Randall Gold and Anita Cream.

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Calling on all taxpayers with payroll tax problems, contact us today to resolve your payroll tax issues and get tax relief today.

Special Tax Break on New Car Purchases Available in States With No Sales Tax

The Internal Revenue Service and Treasury Department today announced that a tax break for the purchase of new motor vehicles is available in states that do not have a state sales tax. Under the American Recovery and Reinvestment Act of 2009, taxpayers who buy a new motor vehicle this year are entitled to deduct state or local sales or excise taxes paid on the purchase.

The IRS and Treasury have determined that purchases made in states without a sales tax -- such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon -- can also qualify for the deduction.

The IRS said today that taxpayers who purchase a new motor vehicle in states that do not have state sales taxes are entitled to deduct other fees or taxes imposed by the state or local government. The fees or taxes that qualify must be assessed on the purchase of the vehicle and must be based on the vehicle's sales price or as a per unit fee. According to the IRS, Congress intended for these fees or taxes to qualify for this special tax deduction.

"This special tax break is available for people purchasing a new car this year, and that can include people in states without a sales tax," said IRS Commissioner Doug Shulman. "This means that more people can take advantage of this deduction when they file their tax returns next year."

To qualify for this deduction, the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010. Taxpayers can claim this special deduction only on their 2009 tax returns to be filed next year.

The deduction is limited to the fees or taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle.

The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.

The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers who do not itemize will add this additional amount to the standard deduction on their 2009 tax return. The IRS reminded taxpayers the deduction may not be taken on 2008 returns.

Calling on all taxpayers whom have not filed for many years, we can help you file your unfiled tax returns and resolve your back taxes. Get tax relief today and get your life back in order, call Mike toll free at 1-877-78-TAXES or CLICK HERE.

Do not lose sleep over your mounting tax debt - Internal Revenue Service () has designed a program to enable willing taxpayers to get some relief from the amount of tax owed by accepting less than their tax debt liabilities or allowing them installment payments or a holiday period from tax. This is known as the tax relief program and is implemented by offer in compromise / tax settlement with the individual who owes large sum of tax and is willing to pay.

If you qualify to pay less than the mounting tax debt you owe, you can settle your outstanding tax debt dues, the best way out for you is to hire a qualified and licensed tax professional who have experience in effectuating tax relief, IRS tax audit representation and or State tax audit representation. With the help of highly specialized and trained tax relief expert who will represent your case, you have a very good chance to get IRS tax relief and or State Tax relief.

As tax experts know the right way to represent your case, you stand a very good chance of getting Tax Relief and beneficial tax settlement. The tax consultants are familiar with all the tax laws and are updated with changes in tax laws and codes that happen regularly. Their negotiation tactics are powered by their knowledge and experience and are sure to clinch a better deal for you.

You can get tax settlement by allowing you to pay your taxes in installments. Tax professionals can also help you avoid and stop wage garnishment / wage levy. This is am IRS tax levy program under which your tax will be automatically deducted from your monthly wage earnings. Even if you want to get rid of a wage garnishment program earlier levied on you, tax professionals can help you out. Once you receive a wage levy notice, you should take action immediately by consulting a reputable tax consultant so as to avoid getting your paychecks garnished and or levied by your employer under the instruction of the government.

Always get help of a licensed tax professional who can resolve your outstanding tax related matters, you can also seek professional help in matters related to back taxes / delinquent tax returns / unfiled tax returns etc. from a tax attorney or tax professional. You can avail of a payment plan for your back taxes and get all your penalties eliminated with professional help. Handling your tax problems yourselves may result in frustration or negative results.

How to solve your IRS tax problems? For all types of tax related problems and getting instant tax help, please contact us online at myirstaxrelief.com

Getting to Grips with Wage Garnishment

Have you ever heard of a wage garnishment? If you haven't, and you are responsible for paying the IRS what you owe them, then you should read on! If you're in a position where you owe the IRS money already, then you shouldn't just read on, but take note because wage garnishment is something that could very easily be in your future!

Every taxpayer knows that Uncle Sam needs his pound of flesh (or at least roll of dollars), regardless how many mouths you have to feed, and how high your mortgage payments are now that the financial world is in crisis, or how your income has changed. Uncle Sam doesn't care if you've lost your job, or had to take unpaid leave because of health reasons. If you owe Uncle Sam money, he wants it; and in the form of wage garnishments, he's going to make sure that he gets it.

There are strict procedural guidelines that the IRS must adhere to before they can attach a wage garnishment to your salary, and the first of these is to warn you that it's about to happen. If you haven't defaulted on your tax payments, then you need to immediately contact them because they need you in default in order to proceed! If you're not in default, then they can't put a wage garnishment onto your salary. You should get about 30 days warning of the wage garnishment going into effect so check the date that it is due to begin and use your time wisely.

If you're already finding it difficult financially, imagine how much worse it's going to be if the IRS takes money from your monthly income before you get a chance to see it? It's difficult enough to decide which bills get paid when your income no longer covers your monthly outgoings. If the IRS has a wage garnishment on your salary, then they take what they want and you have to make do with what's left. As soon as you get that warning letter, notice of levy, you need to act fast.

Find the services of a reliable tax relief specialist. You need someone who is experienced in wage garnishment issues so that they know their way around the system. You don't have time for them to learn the process on your case, you need someone who already knows the process and can stop the wage garnishment being put into place. These specialists will be able to guide you through the process, and mediate with the IRS on your behalf so that an amicable agreement is reached regarding your tax debt to the IRS.

As the recession tightens its grip, an increasing number of people are finding themselves in a wage garnishment situation. A recent news story from Lima, OH suggested that there was a 24% increase in these cases compared with the same 5-month period in 2008. Uncle Sam wants his money, if you didn't have it to pay when it was due, chances are you don't need him taking it from your wages so if you owe the IRS money, or you get a letter telling you that you are about to have a wage garnishment or wage levy attached to your salary - don't wait until it's too late to stop it.

Pick up the phone and call Mike Habib at 1-877-78-TAXES [1-877-788-2937] or send us an inquiry. Make an appointment with Mike Habib who knows what he's doing, and ensure that the wage levy is stopped before it gets started!

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In April 2009, the IRS released a new form for taxpayers who have experienced, or are at risk of harm from, identity theft. Form 14039, IRS Identity Theft Affidavit, is used to report identity theft to the IRS. FTB does not have a similar form, FTB do have internal procedures to help victims who contact them. First and foremost, FTB want the taxpayer or their representative to contact them as soon as they think something is wrong with their tax account, regardless of whether it was ID theft or not. When a taxpayer receives an FTB notice e.g., billing, refund reduction, e-file rejection that a taxpayer/victim believes is attributable to identity theft, their contact is given priority handling. We then focus on the following issues for the taxpayer:

• Ensure the victim is held harmless, i.e., they get their full and correct refund.
• Minimize the burden on the victim in resolving their identity theft-related tax problem.
• Minimize the time to resolve the case, usually within two weeks to two months depending on the complexity.

The sooner the ID theft is reported, the easier it is to get the taxpayer's account back in order. We would like to remind our readers that if they suspect something is wrong with their tax account or if they have been a victim of ID theft to let the IRS know.

If you are a victim of identity theft and have tax problems, such as back taxes, wage garnishment or a bank levy, contact us today for tax relief options.

Hawaii - Tax Amnesty Program Announced

The State of Hawaii Department of Taxation announced that it is offering a "Tax Fresh Start Program," running from May 27, 2009 through June 26, 2009.

The program provides an opportunity for eligible taxpayers to pay their back taxes to the state while avoiding penalties and potentially avoiding referral for criminal prosecution. It also offers a 50% reduction in interest from the statutory rate of 8% per annum to 4% per annum.

The program is available to all eligible taxpayers owing eligible Hawaii tax(es) for any taxable period ending on or before December 31, 2007.

Mike Habib directly at 1-877-78-TAXES [877-788-2937], you might settle your tax debt for less than you owe.

IRS to seek more regulation of tax preparers

The IRS reported that it is working on new rules that will require paid tax preparers to be licensed. This will improve tax compliance and reduce tax preparer fraud; IRS Commissioner Doug Shulman announced that on June 4, 2009.

A whopping eighty percent of taxpayers get help with their returns, either from paid tax preparers or tax software programs, Shulman told a congressional subcommittee. Surprisingly, tax preparers currently don't have to be licensed, unless they represent clients in proceedings before the Internal Revenue Service.

Commissioner Shulman said he wants "better leverage" to make sure tax preparers act ethically.

"Paying taxes is one of the largest financial transactions individual Americans have each year, and we need to make sure that professionals who serve them are ethical and ensure the right amount of tax is paid," Shulman said.

Commissioner Shulman said he would seek input from the industry before making his proposals to President Barack Obama by the end of the year. The proposals could include new regulations or new laws.

Our firm, Mike Habib EA Tax Relief Services, we are licensed to represent taxpayers before the IRS in all 50 states. If you have a tax problem, such as a wage garnishment levy, or a bank levy, contact us today regarding your tax relief options. Online at www.myirstaxrelief.com, or toll free at 1-877-78-TAXES