JUNE, 2006
Inside This Issue....
'Survivor' Winner Sentenced to 51 Months in Prison
Idaho Bingo Operators Indicted on Tax Charges
Ohio Woman Gets 30 Months
for Making False Refund Claims
IRS Question Corner |
OHIO WOMAN GETS
30 MONTHS FOR FALSE
REFUND CLAIMS
Vanessa Carter, of Aurora, Ohio, was sentenced to 30 months in prison, to be followed by three years of supervised release, for making 20 false claims for income tax refunds in the names of 11 people.
The sentence was imposed by U.S. District Judge Patricia A. Gaughan, who also ordered Carter to make restitution of $19,504 to the Internal Revenue Service.
Carter pleaded guilty to the charge on Feb. 15. According to a statement of facts, Carter prepared and electronically filed 20 income tax returns for the years 2000, 2001 and 2002, containing false, fictitious, and fraudulent claims for tax refunds totaling $75,295.
Carter submitted the returns using a software package through which she arranged for the Santa Barbara Bank & Trust to issue Refund Anticipation Loans in the names of the taxpayers. Carter caused five of the refund loans to be direct-deposited into the taxpayers' accounts; for the other 15 returns she caused or directed the bank to deposit the funds to an account of hers or accounts of certain friends and relatives, thereby enabling her to receive and control the loan proceeds.
The IRS issued 13 refunds totaling approximately $50,833 but detected the fraud in time to prevent other payments.
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IRS Times & Inquirer
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'Survivor' Winner Sentenced to 51 Months in Prison
The winner of the first season of CBS's popular show Survivor now has a new challenge - survive 51 months in the hoosegow.
A federal judge sentenced Richard Hatch, of Newport, R.I., to 51 months in prison for evading income taxes. In January, a jury found him guilty of tax evasion for not reporting to the IRS about $1.4 million that he earned from Survivor and other sources.
"In addition to punishing this defendant, this sentence should serve as a warning to others who might think of dodging their tax obligations," U.S. Attorney Robert Clark Corrente said in a prepared statement. "Paying taxes is an ordeal, but it is every citizen's obligation to pay them honestly and fully."
"Our nation's federal tax system is not a reality show to be outwitted - it is a reality, period," said Eileen J. O'Connor, Assistant Attorney General of the Justice Department's Tax Division.
Idaho Bingo Operators Indicted on Tax Charges
Robert J. Ford and William J. Tway, the operators of Big Bucks Bingo in Garden City, Idaho, have been charged with tax fraud and conspiracy for allegedly overstating the percentage of bingo revenues that went to charity.
Ford and Tway have run Big Bucks Bingo since 1996 under a provision in the state constitution that permits bingo and raffle games operated by qualified charitable organizations.
A related state law requires that at least 20 percent of the annual gross revenues of the games must be given to charitable or nonprofit organizations to be used for charitable purposes.
For the year 1999, the indictment alleges, Ford and Tway reported charitable contributions of $159,988; for 2000, the amount reported was 57,000. In both cases, the grand jury charged, the amount actually given to charity was substantially less.
The two men face up to three years in prison on the tax-fraud charges and up to five years in prison on the conspiracy charge.
IRS QUESTION CORNER...
Question: Tell me about the Offer in Compromise program: Who qualifies for it and how do I know if it's right for me? I owe a substantial amount in back taxes.
Answer: While I would need to know much more about your situation to tell you for certain whether you qualify for the Offer in Compromise program, I'm more than happy to tell you about how the program works in general.
After too many long years of chasing down deadbeat taxpayers, the IRS realized that cooperation can often be the best tool for collections. Taxpayers who feel their debt is absolutely insurmountable are unlikely to pay up, the IRS discovered.
Enter the Offer in Compromise program. Through this program, a taxpayer can negotiate a settlement amount with the IRS that often amounts to pennies on the dollar. With the help of a qualified tax professional, you can sit down with the IRS and negotiate a settlement amount that you realistically can pay. This negotiated settlement amount will take care of your IRS debt once and for all.
It's that simple. If for whatever reason you owe back taxes that you cannot afford to pay, the Offer in Compromise program might be for you. First, consult a qualified tax professional who will analyze your previous returns and figure out whether the Offer in Compromise program is right for you.
Now, keep in mind that the IRS will perform due diligence: If you live an extravagant lifestyle and just want to weasel out of tax debt, the IRS won't fall for it. But if you legitimately have incurred huge tax debts that you cannot pay, the program is right for you. And you literally can reduce that debt by pennies on the dollar.
If you're losing sleep because of tax debt, it's time to make changes.
I deal with cases such as yours every day, I'm an IRS Problem Solver.
For a free, no-risk consultation, call my office at 253-752-9522 or send me an E-mail at Firm@DNelsonCPAs.com Do it today!
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