January, 2007
Message from Nelson & Company, P.S., CPAs
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 "So, when would be the best time to break up with the guy I'm living with...taxwise?" CA MAN SENTENCED
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IRS Times & Inquirer
NELSON & COMPANY, P.S. CERTIFIED PUBLIC ACCOUNTANTS 253-752-9522 | 1-800-669-0137 Mobster: I'm Guilty!Genovese wise-guy Matthew Ianniello, 86, has pleaded guilty to racketeering and tax charges in Connecticut. On June 8, 2006, a federal grand jury in New Haven indicted Ianniello and several others on various charges stemming from an investigation of the waste-hauling industry in Connecticut and New York. Since the 1960s, the Mafia in the New York area has represented garbage haulers who claim "property rights" to every stop they collect - no matter what contracts are in effect. The Mafia protects this right and the haulers, in turn, make "tribute" payments to the organized crime outfit, the indictment alleged. Ianniello admitted that, for several years, he collected "tribute" payments from a member of Connecticut's carting industry in exchange for his backing and that he failed to declare these payments as income on his tax returns and failed to file tax returns in 2003 and 2004. As part of his plea agreement, Ianniello has agreed to pay more than $400,000 to the government. CEO Indicted on Tax Evasion ChargesA federal grand jury indicted John Frances Griffin, of Orinda, CA, with mail fraud and tax evasion, in a scheme in which he lied to investors and employees about making significant loans to the company he was running. According to the indictment, Griffin, 43, was the CEO of VaporTech, Inc., a startup company in Livermore, CA, involved in the research and development of technology which converts fuel to hot water, high-quality steam or superheated water vapor. From February 2004 to May 2006, Griffin allegedly told investors he had loaned $275,000 to VaporTech to entice them to invest in the company. The indictment also alleges that Griffin falsely told VaporTech employees he had loaned VaporTech $1 million to conceal the fact that he had taken money from the company bank account without authorization. The indictment further charges that during the calendar years 2004 and 2005, Griffin evaded the assessment and payment of his income taxes by failing to provide his Social Security number to the VaporTech CFO, cashing his salary checks instead of depositing them, and by extensively using cash and cashier's checks to avoid detection of his income. If convicted, he faces up to 20 years in prison and a fine of up to $250,000. IRS QUESTION CORNER...Question: Since the New Year has rolled around, I've made myself a promise: I want to get rid of my tax debt. I owe about $140,000 in back taxes and now earn about $65,000 per year (with no savings). I don't know where to begin. Can you help? Answer: You've made the first step. The hardest part in overcoming tax debt is coming to the realization that you want to finally eradicate that debt. Considering the amount you owe and your annual income, I realize that this tax problem can seem insurmountable. But trust me: It isn't. What you need to do is find a qualified tax professional. He or she will analyze your previous tax return with a fine-tooth comb to get to the exact amount you owe. Why do this? Because there is no reason you should volunteer to pay the IRS even a penny more than you owe. Once you and your qualified tax professional have determined the exact amount of your debt, you will meet with the IRS. While you will have many options available, the two most popular options for taxpayers in your situation are the Offer in Compromise program and the Installment Agreement. The Offer in Compromise program is for taxpayers who no longer have the financial wherewithal to satisfy their debt, no matter how many expenses they cut or assets they sell. If you qualify for this program, your tax professional will negotiate a settlement that often can amount to pennies on the dollar! The other option is the Installment Agreement. Together with your tax professional and the IRS, you will negotiate a payment schedule that will allow you to satisfy your debt without significantly crimping your quality of life. I solve IRS problems like yours every day. I'm an IRS Problem Solver. For a free, no-risk consultation, please call my office at 253-752-9522 or send me an E-mail at Firm@DNelsonCPAs.com. Do it today! |
