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Is Wesley Snipes Guilty Of Tax Evasion Or The Victim Of Criminal Financial Management And Tax Planning?

June 28, 2010 By

Is Wesley Snipes really guilty of criminal tax evasion or was the star unaware of what was happening because he was the victim of bad financial management? Since Ken Starr, his former investment advisor and financial manager has been indicted for a Ponzi scheme that reflects Bernard Madoff’s crimes, shouldn’t Snipes be given the benefit of the doubt and a new trial? The serious income tax problems of Wesley Snipes could have been avoided with capable tax planning and management.

If Wesley Snipes had placed his financial management and tax planning in the capable hands of Creative Artists Management, all of these negative consequences never would have arisen. By failing to align themselves with trustworthy advisors, Hollywood celebrities have a striking tendency to fall victim to business charlatans and financial schemes that land them in hot water. In addition, the Tax Resolution Institute has helped many celebrity and ultra-wealthy clients (who always remain anonymous so their privacy is protected) out of serious tax problems and tax relief challenges.

Is Wesley Snipes a Victim of a Criminal Tax Planner?

Is Wesley Snipes a Victim of a Criminal Tax Planner?

Wesley Snipes’ attorneys are hoping his former financial adviser Ken Starr’s arrest could pave the way for a new trial on tax evasion charges that landed the star of the “Blade” trilogy a three-year prison sentence. Snipes has been seeking to have his conviction overturned, but now his attorneys want to file a new appeal based on the arrest of Ken Starr. Starr, the one-time financial adviser to Snipes and other celebrities, was charged in May with securities fraud worth $59 million. Did the IRS believe the testimony of Ken Starr, turning Wesley Snipes from the financial victim into the tax debt fall guy?

Ken Starr was a key witness in Snipes’ 2008 trial, and Snipes claims that Starr lied when he testified that he told the movie star to file tax returns and ignore the advice he got from an anti-tax outfit. Snipes’ attorneys asked the 11th Circuit Court of Appeals in a motion filed Wednesday to stop considering the pending appeal and instead allow his attorneys to file a new request to either dismiss the conviction or grant Snipes a new trial in light of his adviser’s arrest. The motion contends that prosecutors knew that Starr, who has pleaded not guilty, was under federal investigation for tax violations of his own when he testified against Snipes in January 2008. Defense attorneys said in the filing such an investigation damages Starr’s credibility.

The actor was convicted of three misdemeanor counts of willful failure to file his income tax returns and sentenced in April 2008 in what was considered a key victory for prosecutors who aggressively pursued the maximum penalty to deter others from trying to obstruct the Internal Revenue Service. Prosecutors say he made at least $13.8 million over three years and owed $2.7 million in back taxes that he refused to pay. And Snipes, who is free on bail while he appeals, apologized at the time and said he was an idealistic artist who was “unschooled in the science of law and finance.”

The Criminal Financial Management & Tax Planning of Ken Starr

The Criminal Tax Planning of Ken Starr

Who is Ken Starr? Until the New York money manager grabbed headlines as the alleged center of a $30 million Ponzi scheme, Starr operated in the shadows, despite an A-list client list that included Martin Scorsese, Uma Thurman and Sylvester Stallone. If anything, the flashiest thing about the 66-year-old Starr was his wife, the ex-stripper Dawn Passage and his $7.5 million Manhattan condominium with a 32-foot lap pool that Starr purportedly used his clients’ money to buy. Following a long-running investigation by the Internal Revenue Services’ criminal investigation division, Starr was arrested at his Upper East Side apartment while hiding in a closet. He is currently charged on three counts — wire fraud, fraud by an investment advisor and money laundering — and is being held without bail.

Much like Bernard L. Madoff, who is serving a 150-year sentence for bilking tens of billions of dollars from his closely knit network of clients, Ken Starr cultivated business at charity events and lavish parties, bridging the worlds of New York and Hollywood to build a star-studded client list of socialites, financiers, philanthropists, A-list actors and Hall of Fame athletes. Starr used his access to famous and powerful clients “to burnish an image of trustworthiness, leading his clients to entrust him with management and control of their financial affairs,” sometimes assuming “total control” over their financial lives. Did Snipes give Starr such control?

Why would a powerful Hollywood star allow a financial advisor to control all of their finances, setting up shell companies and making questionable investments? Although Wesley Snipes is a capable actor, there is a certain truth to his claim that he is unschooled when it comes to business. Given Ken Starr’s charm — the persuasive power of a con man — and his high-end connections in celebrity circles, it is not surprising that Snipes gave away so much control.

Unlike Ken Starr, the founders of Creative Artists Management and the Tax Resolution Institute do not mingle at parties and events with Hollywood stars and celebrities. Instead, they focus on doing the business of their jobs and focusing on their work: Secure Financial Management and Reliable Tax Planning. Yes, the goal of Creative Arts Management is to make money for our clients, but without ever placing our client’s future security at risk or in any kind of jeopardy.

In an up and down economy, wealthy clients need to know their financial interests are protected. If Wesley Snipes had ignored the pomp and circumstance of Ken Starr and made the levelheaded choice of Creative Arts Management and the Tax Resolution Institute, the star’s name would be clean. Snipes only would have been in the papers in relation to action in his movies and not criminal tax evasion

Filed Under: Income Tax Problems, Tax Planning, Tax Relief Tagged With: , , , , , , , , ,

Tax Resolution Institute Reduces San Francisco Petroleum Executive’s Tax Liability By $120,000

June 24, 2010 By

The Tax Resolution Institute was able to lower the back tax liability of a San Francisco Petroleum Executive by $120,000. By employing federal tax expertise and experience with the IRS, we were able to protect or client from an incorrect assessment after a tax shelter was disallowed. If you need help with a big income tax debt or problem, check out the details of this account. Most likely, we can help you as well and provide real tax relief.

An Executive Tax Shelter Disallowed

An Executive Tax Shelter Disallowed

The Petroleum Company President recommended that the Executive enter into a major tax shelter. Although the Petroleum Company accountants estimated a less than 50% chance of shelter being viable, the company applied the pressure. When the president of a company recommends something to you, such a recommendation should be considered more of an exclamation point than a question mark. Knowing he had to go along in order to keep in good standing with the company, the Executive invested in the tax shelter despite initial misgivings.

Ultimately, it turned out that his initial misgivings were right on target. Seven years after the tax shelter was created, the IRS reviewed and disallowed it. All of the executive who took part in the tax shelter were considered full partners. As a result, he IRS assessed the tax liability across the board equally. Such an assessment, however, turned out to be incorrect when it came to the future client of TRI.

The Shock of an Incorrect Tax Liability Assessment

The Shock of an Incorrect Tax Liability Assessment

Our executive client who had the initial misgivings chose to stop taking the allowed deductions from the shelter after the first three years. Unlike his partners who had continued to take the personal income tax deductions for the entire period, his liability should have been significantly less. Since the IRS had assessed the liability as a whole, the back taxes owed by the Petroleum executive were much greater than what he had actually received in deductions taken from the tax shelter.

A major challenge is once a penalty has been assessed, the IRS does not want to admit that an assessment is ever wrong. Even when an inconsistency or problem is pointed out, changing the assessed amount remains difficult. Luckily, the San Francisco Petroleum Executive came to the Tax Resolution Institute. With years of experience handling such incorrect assessments, our tax experts knew what to do.

TRI's Helping Hand and Tax Relief

TRI's Helping Hand and Tax Relief

After intense negotiations and the filing of an amended tax return, the TRI Tax Experts appointed to the case were able to have the Petroleum executive’s tax liability pro-rated. In the end, after the new assessment, the amount owed in back taxes due to the disallowed tax shelter was reduced by approximately $120,000 in light of the actual tax deductions taken. If you are in tax trouble with the IRS and need tax relief, please contact us and we can help you. In truth, as the largest collection agency in the world, the IRS often makes mistake when it comes to assessments. The goal of the Tax Resolution Institute is to amend such mistakes in order to protect your financial future and the security of your assets. If you need tax resolution services, feel free to call the Tax Resolution Institute at 877-829-8370 or fill out our  tax resolution form.

Filed Under: Income Tax Problems, Tax Relief Tagged With: , , , , ,

Tax Relief Success in Sacramento: The California Franchise Tax Board Refunds Bank Levy To Taxpayer

June 11, 2010 By

For the Tax Resolution Institute, nothing is as satisfying as when we can provide real tax relief success for taxpayers that come to us for help. Before we dive into the true story, we want to note that certain details have been altered to protect the privacy of our client. The Tax Resolution Institute will never violate a client’s right to privacy and anonymity.

Recently, we received a letter from a happy Sacramento taxpayer who had received a large refund from the California Franchise Tax Board. What is so rewarding is that money that was previously levied by mistake was refunded in full to the client after the Tax Resolution Institute successfully handled his tax problem.

In the letter, the happy Sacramento client who had been facing huge income tax problems with both the California Franchise Tax Board and the IRS expressed his gratitude when he kindly wrote:

“I just wanted to drop you a line to let you know that the State of California has just sent us, not one, but two refund checks.  I take this to mean that the issue with them is resolved. Great job and thanks!”

Tax Relief Success For A Sacramento Taxpayer

Tax Relief Success For A Sacramento Taxpayer

When the Sacramento taxpayer first came to us, he owed a bundle of taxes, penalties and interests for various unfilled personal income tax returns. By the time the Tax Resolution Institute became involved, the client’s bank accounts were being levied by the California Franchise Tax Board to cover the unpaid state tax bill. Right away, the Tax Resolution Institute took action to protect the future financial security of our client.

By taking action on the delinquent tax debts, we stopped the IRS and local state taxing agencies from further levying his bank accounts or garnishing his wages. Without this action, the enforcement actions eventually would have expanded into possible asset seizures. The Tax Resolution Institute went through and prepared the unfiled tax returns. The preparation and submission of the unfiled returns took place on both the Federal and the State level.

With the Federal Taxes, the Tax Resolution Institute negotiated a successful Installment Agreement for the delinquent tax debts. Wiping away the penalties and interests, the taxpayer received a payment plan that fit into his economic timetable. The Installment Agreement was workable and secure, satisfying all the parties involved.

California Franchise Tax Board Refund

California Franchise Tax Board Refund

The real tax resolution success came when the unfiled tax returns were filed with the California Franchise Tax Board. Upon accepting and processing the tax returns, the Tax Compliance Officer that not only did the client not owe any more money, but they actually were due a refund. In addition, the client’s bank accounts had been improperly levied and they were due a refund for the money that previously had been levied.

What a success for the Sacramento taxpayer! Thanks to the Tax Resolution Institute, no more enforcement actions were taken against them and they received two refund checks from the State of California. If you have a serious state or federal income tax problem, don’t you deserve to find out whether such positive tax relief is a real possibility for you?

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Relief Tagged With: , , , , , , , ,

Business Man Sentenced For Evading Income Taxes In San Francisco and Las Vegas and For Poaching

June 8, 2010 By

At the end of May, a federal judge sentenced San Francisco businessman Luke Brugnara to 2 1/2 years in prison and ordered him to pay $1.9 million in back taxes for failing to report profits from real estate sales to the Internal Revenue Service from 2000 through 2002. Later in the week, Brugnara was sentenced to 15 months in federal prison for violating the Endangered Species Act by poaching steelhead trout, a term he will serve while also doing time for his income tax violations. U.S. District Judge Maxine Chesney imposed the sentence Wednesday after Brugnara pleaded guilty to illegally capturing the threatened species and making false statements to investigators.

Luke Brugnara Convicted For Evading Income taxes

Luke Brugnara Convicted For Evading Income taxes

The Tax Resolution Institute could not have helped Brugnara with the poaching conviction. If you repeatedly kill an endangered species, you are going to pay the price. However, if Brugnara had come to the tax experts at the Tax Resolution Institute for help with his back taxes before it became a legal case, real tax relief could have been achieved. There is no point in trying to hide big profits from the IRS, the largest collection agency in the world. Sooner or later, you will be caught and you will pay the price. Instead, by consulting a tax professional, you can discover a way to cover your tax debt without damaging your future financial viability and without breaking the law.

In the case of Brugnara, for years the San Francisco businessman flouted laws protecting endangered species and requiring the payment of income taxes. After making a small fortune in real estate, Brugnara filed false tax returns and failed to report more than $45 million in capital gains from the sale of real estate. The tax-evasion case against Brugnara dates back to 2000 through 2002. The criminally delinquent taxpayer did not report capital gains from the sale of four properties in San Francisco and one in Las Vegas. In addition, the indictment against Brugnara alleged that he did not properly report corporate income connected to his home mortgage, car loan and other personal payments.

IRS Prosecutes Tax Evasion In San Francisco and Las vegas

IRS Prosecutes Tax Evasion In San Francisco and Las vegas

Brugnara’s criminal behavior extended to his projects in both California and Nevada. After acquiring the Silver City Casino in Las Vegas, he sought a license from the Nevada Gaming Control Board. During its background investigation, the board found that he had not filed tax returns from 1991 though 1998. Court documents show that he also provided a lender with invoices from a nonexistent tax service and a false statement that he owned more than $400 million in artwork. If you try to evade paying your income taxes and break the law, both the IRS and the State Taxing Agencies eventually will catch up with you. If you are in tax trouble, please do not make the mistakes made by Luke Brugnara. Instead, contact the Tax Resolution Institute and find a tax relief solution today.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Relief Tagged With: , , , , , , , ,

Tax Resolution Expert Markwei Boye Analyzes Income Tax and Payroll Tax Problems in Detroit & Michigan

June 4, 2010 By

As the recession continues to hit both American taxpayers and companies, the Tax Resolution Institute is talking with tax experts around the country about rising income tax problems and payroll tax difficulties. By contacting tax professionals with valuable information, TRI will increase the value of this ongoing blog by providing you with the edge you need in these challenging times. To start this series, our first discussion was with Markwei Boye, a respected Enrolled Agent from Detroit who recently started a Tax Resolution Service Blog to address these rising concerns.

Tax Resolution Specialist Markwei Boye

Tax Resolution Specialist Markwei Boye

With a Masters in Business Administration (MBA) from Wayne State University, Markwei Boye is a member of the Registered Financial Planning Institute, National Association of Enrolled Agents, National Association of Tax Professionals and National Society of Accountants. An Adjunct professor at Cornerstone University School of Business, Markwei Boye is the founder and owner of Smart Business International PLLC, which was established in Detroit in 1995 as a small business accounting and tax-consulting firm.

With the American auto industry in crisis, the city of Detroit and, to an even greater extent, the state of Michigan have been hit hard by the recessionary economy. Boye explains that his company has been receiving calls left and right from former automobile workers in tax crisis. Many of the workers in the auto plants agreed to a buyout plan when the plants closed. Unfortunately, most ended up spending all of the money without taking into consideration their future tax bill. Today, they find themselves unemployed with no job prospects, and they cannot pay their income tax bill. In addition, many of these American workers have lost their homes.

Like the Tax Resolution Institute, Markwei Boye offers these people a variety of effective tax solutions. “Many taxpayers do not realize that just about everything is negotiable with the IRS,” said Boye. “We can help substantially reduce your back tax debt with an affordable payment plan. We have years of experience submitting Offers in Compromise to obtain a final settlement of all taxes, penalties and interest.” If the individual is completely tapped out and an Offer in Compromise is not an option, Boye has the tax account classified with the IRS as Code 53, otherwise known as Currently Not Collectible.

Payroll Tax Problems Darken Detroit

Payroll Tax Problems Darken Detroit

In terms of payroll tax problems, Markwei Boye has seen a sharp rise in Detroit and Michigan as a whole. The majority of the companies are tied to the automotive industry. Since the plants have been shut down, tons of subsidiary businesses that relied on the success of the auto industry have been thrown into crisis. Once these companies started having financial difficulties, they went into panic mode and cut corners when it came to covering the trust fund of their payroll taxes. As the Tax Resolution Institute has expressed in the past, cutting these corners is often a death-knell for a company.

Since most of the companies Boye works with have already gone under, he focuses on working with the IRS to no longer make them responsible parties for the matching portion of the Trust Fund. When asked if the IRS has become more aggressive and difficult in terms of Payroll taxes, Boye explains that most IRS Revenue Officers just want to collect the Trust Fund and close a case. Instead of being more aggressive, the IRS is often more reasonable, willing to waive the penalties and interest in order to settle a case.

Markwei Boye explains that whenever he tells an IRS Revenue Officer that he is calling about a client in Michigan, they immediately become more reasonable. Recognizing the recessionary crisis brought on by the automobile industry, the IRS is willing to compromise. The problem is that a majority of taxpayers with income tax problems and companies with payroll tax problems take what Markwei Boye calls the Ostrich approach. They stick their head in the sand and hope the problem magically will go away. But the IRS and tax problems never just go away. They only get worse unless they are properly handled by a tax professional like the tax experts at the Tax Resolution Institute.

Filed Under: Income Tax Problems, Payroll Tax Problems, Tax Relief Tagged With: , , , , , , , , , , ,

Released from Prison for Income Tax Evasion, R&B Icon Ron Isley has to pay $3.1 Million in Back Taxes to the IRS

June 1, 2010 By

Released from prison after completing a three-year sentence for income tax evasion, R&B icon Ron Isley of the legendary group The Isley Brothers, still has to pay off his back tax debt to the Internal Revenue Service. The 68-year-old singer was released on April 13, after a 2006 trial found him guilty of five counts of tax evasion and one count of willful failure to file a tax return. Isley was also ordered to pay $3.1 million in back taxes to the Internal Revenue Service.

R&B Icon Ron isley faces His Back Tax Debt

R&B Icon Ron isley faces His Back Tax Debt

Isley’s tax crisis never had to become so extreme and damaging. If he had contacted a tax professional as opposed to evading his tax payments, he would never have gone to prison. In addition, the tax experts at the Tax Resolution Institute could have found a payment solution for the famous singer.

The Hollywood Reporter reported that Isley was sentenced to 37 months in prison, instead of the maximum sentence, which would have sent him to jail for 26 years. Isley was imprisoned at a Federal Correctional Institution, and then completed his sentence in a halfway house following an early departure last October. The ‘Contagious’ singer requested a reduced sentence for health issues – he cited complications from a stroke and a bout with kidney cancer, but ultimately it was denied because the judge deduced that Isley was a “serial tax avoider.” If you are a serial tax avoider, please contact the Tax Resolution Institute and take action today.

Ronald Isley’s career allows for one of the best musical equivalents of the Kevin Bacon pop culture phenomenon “Six Degrees of Separation.” With brothers Vernon, O’Kelly and Rudolph and under the family moniker, Isley first landed on the pop music charts with the perennial party favorite “Shout” in 1959. Three years later, they beat the Beatles up the charts with their version of “Twist and Shout.”  The brothers’ later maturation as R&B and soul masters was arguably instrumental in pushing the evolutions of the genres themselves.

Income Tax Evasion Is A Lose-Lose Proposition

Income Tax Evasion Is A Lose-Lose Proposition

After being released, Isley was interviewed by comedian Steve Harvey.  Isley said: “I’m overjoyed to be home and to be able to do everything that I want to do. I’m in love with this record business and I’m in love with the fans and everything and I just couldn’t wait to get back to doing that. I’ve been thinking about it for 3 years and wondering what it was gone be like. It changed me a whole lot” The singer performed for the first time after being released on May 8 at a reunion concert in Atlantic City with his brothers.

Nevertheless, Isley greatly regrets his serial tax evasion that led to prison. It damaged his family, his career and his reputation with a permanent stain that can never be removed. Before you find yourself in such desperate tax straits, contact the Tax Resolution Institute. If you take action today, tax relief can be a possibility for you.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Relief Tagged With: , , , , , , , , ,

Kevin Mitchell, former San Diego Padres baseball slugger, owes $5.3 Million in Back Taxes to California

May 28, 2010 By

Homerun-bashing San Diego Padres bad boy Kevin Mitchell, a member of the 1986 World Series champion New York Mets and the 1989 National League MVP, owes more than $5.2 million in delinquent state taxes, records in California show. Kevin Mitchell was paid an estimated $20 million during a 14-year major-league career with the Mets, San Diego Padres, San Francisco Giants, and five other teams. Mitchell, a native San Diegan and now 48, had a stellar career early on with the Mets and Padres. Kevin Mitchell needs today to find real tax relief in California.

San Diego Padres Slugger Kevin Mitchell Busted For Back Taxes By The California Franchise Tax Board

Kevin Mitchell Busted For Back Taxes By The Franchise Tax Board

Clearly, Mitchell mismanaged his baseball earnings with a combination of bad business management and poor tax planning. If Kevin Mitchell had come to the tax experts at the Tax Resolution Institute, he could have found a positive combination of preventive measures and tax relief solutions. Today, with the huge state tax debt and the bad publicity, Mitchell could still find real tax relief at the Tax Resolution Institute.

Kevin Mitchell was paid an estimated $20 million during a 14-year major-league career with the Mets, San Diego Padres, San Francisco Giants, and five other teams. Mitchell, a native San Diegan and now 48, had a stellar career early on with the Mets and Padres.

Kevin Mitchell was known as a bad boy because he is the only known player to be accused of decapitating a cat. Mets pitcher Dwight Gooden wrote in his 1999 autobiography, Heat, that he witnessed Mitchell decapitate his girlfriend’s cat with a 12-inch knife. Mitchell denied it, but his bad karma could be catching up with him.

Kevin Mitchell, however, is not the only San Diego resident to wind up on California’s list of the worse tax debtors. In fact, when the California Franchise Tax Board released its list of major individuals and corporations with the largest tax delinquencies, three of the top eight are from San Diego County. They are Jeffry C. Howard, $5.4 million, fifth; Kevin Mitchell $5.2 million, sixth, and Michael Fanghella $4.1 million, eighth. Since they are all personal income tax delinquencies, Kevin Mitchell finds himself right in the middle of the list of San Diego’s worse delinquent taxpayers.

Former San Diego Padres Slugger Owes California $5.2 Million In Back Taxes

Former San Diego Padres Slugger Owes California $5.2 Million In Back Taxes

Since San Diego is right in the Tax Resolution Institute’s backyard and some of our most respected tax experts work and practice in San Diego, San Diegans like Kevin Mitchell with severe tax problems should contact the Tax Resolution Institute. The tax experts at TRI can find tax relief and real tax solutions for severe tax problems.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Relief Tagged With: , , , , , ,

Poker Superstar Michael Mizrachi Has A Tax Lien Filed Against Him By The IRS And Owes $339,000 In Back Taxes

May 21, 2010 By
Poker Star Michael Mizrachi Owes Back Taxes

Poker Star Michael Mizrachi Owes Back Taxes

Michael “The Grinder” Mizrachi finds himself in a real serious bind these days.  The Sun Sentinel out of Fort Lauderdale reports that Mizrachi owes $339,000 in back taxes and had a tax lien filed against him by the IRS. In addition, Mizrachi lost his Hollywood, Florida home to foreclosure via an online auction last week.  Another home in Miramur was foreclosed on and sold as well, according to court records. Both properties were assessed this year at less than half of their purchase price. If Mizrachi had contacted a tax professional before the back tax debts with the IRS got out of control, he could have possibly saved the houses and avoided the bad press of the IRS tax lien filed against him.

Commenting on the matter, Michael Mizrachi would only say that his previous accountant was “doing a bad job” and that he had now “hired a better one” and was working on settling the liens. What Mizrachi needs is the  Financial stability is always going to be important to a poker player, as they are then able to focus their attentions on playing the game without all the extra pressures associated with cash flow problems.

Mizrachi’s tax attorney, Steven Chung, said, “Mr. Mizrachi is a victim of the real estate collapse and the recent recession. We are working to resolve his current situation, which was caused by the negligence of his previous professional advisors. We appreciate that several of his creditors, including the Internal Revenue Service, have been understanding and flexible.”

Mizrachi is part of Team UB.com, one of the biggest online poker rooms. From 2005 through 2007, Mizrachi was one of the top players in the game. After signaling the presence of a new star in the poker world by earning $325,000 in 2004, Mizrachi exploded in 2005 by finishing fifth at the World Poker Tour’s Jack Binion World Poker Open and winning the WPT’s L.A. Poker Classic less than a month later. The two final tables earned “The Grinder” over $2 million and pushed Mizrachi to cash seven times at the World Series of Poker that year. According to the HendonMob Database, Mizrachi has $7.1 million in tournament earnings in his career.

Michael Mizrachi's Poker Fame Does Not Stop The IRS

Michael Mizrachi's Poker Fame Does Not Stop The IRS

Mizrachi was active, however, in “swapping” pieces with other players in the poker community. The practice of “swapping,” where a player puts up a percentage of another player’s buy-in and earns that percentage back when a player cashes in a tournament, is something commonly done by poker players to hedge their expenses. The problem with the practice, as is known by poker players, is that the tax burdens go entirely to the winning player and the person who is on the other end of the “swap” doesn’t have any income taxes taken from his piece.

Mizrachi admits that he engaged in this practice and estimates that of the approximately $6.7 million he won from 2004 to 2007, approximately $3.7 million went to backers and “swapping” deals. As a result, Mizrachi owed a lot of taxes to the IRS on money that he was never able to actually bank. As time passed and he took no action, his tax debts led to tax liens and financial chaos.

Fellow poker pro Marc Levy of Boynton Beach pointed out the financial difficulties faced by many professional poker players these days, away from the glamorized media reports. As he explains: “If you’re in a $10,000 event every other week, that’s $240,000 just for buy-in, not to mention all your expenses. There are plenty of guys I know who do well playing poker but still go through their money.” Since professional poker players’ careers swing up and down in dramatic fashions, they often approach tax time with no money left to pay their income taxes. At this point, the job of a smart poker player is to leave the table and contact a smart tax professional like the tax experts at the Tax Resolution Institute.

If you’re facing an IRS Tax Lien, whether you’re a poker pro or not, the Tax Resolution Institute can help. Call 877-829-8370 today.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Lien Problems, Tax Relief Tagged With: , , , , ,

IRS Bounty: Connecticut Lawyer Convicted of Tax Evasion For Failing To Pay Income Taxes

May 17, 2010 By

David Thomas tried to outsmart the IRS by failing to report more than $120,000 in income. On May 14, long after the IRS had uncovered the lawyer’s extensive tax evasion in 2004 and 2005, U. S. District Court in Connecticut sentenced Thomas to three years of probation. Thomas, who has resigned from the practice of law, must pay over $80,000 in back taxes, penalties and interest. In addition, Thomas, 56, was ordered to perform 150 hours of community service after he pleaded guilty to one count of filing a false federal tax return.

Lawyer Sentenced For Federal Tax Evasion

Lawyer Sentenced For Federal Tax Evasion

If David Thomas had been honest and hired a tax professional, he could have avoided the sentence by being a respectable citizen and paying his taxes on time.  Nonetheless, the Tax Resolution Institute is aware that sometimes tax day comes and you do not have enough money on hand to cover your income taxes. Rather than lie to the IRS and commit the crime of tax evasion, call the Tax Experts at TRI. We can help you find a solution that will protect your reputation and help to ensure your future financial viability.

In the case of David Thomas, he simply tried to pull a fast one on the IRS. From 2004 to 2005, Thomas was hired by the Cedar Island Improvement Association to provide legal assistance. Cedar Island Improvement was installing an underwater pipe connecting the Town of Clinton and Cedar Island. During his time on the project, Thomas received $120,877 from the Association. For the tax years 2004 and 2005, however, the lawyer’s federal tax returns did not reflect the amount earned. In fact, the overall adjusted gross income was shown as zero in the tax returns that Thomas filed.

IRS Prosecutes Lawyer For Evading Back Taxes

IRS Prosecutes Lawyer For Evading Back Taxes

By committing the crime of tax evasion, Dave Thomas has lost his profession, his reputation and his ill-gained assets. If you owe back taxes and cannot cover the bill, do not make the mistake that Thomas made. The Tax Resolution Institute specializes in helping find tax relief for individuals with huge income tax bills and delinquent back taxes owed to the IRS.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Relief Tagged With: , , , , , , , ,

With A Tax Lien Filed Against Him In 2009, Rush Hour Star Chris Tucker Has A $3.6 Million Tax Bill In California

May 13, 2010 By

According to the Detroit News, less than a year ago, Chris Tucker, the Rush Hour star, had a $3,594,409 tax lien filed against him by California tax officials in Sacramento County Court. Tucker owes the taxes for the years 2001-02 and 2004-07 when he was actually making movies. Since he has not made a film since Rush Hour 3, it is hoped that Tucker saved enough from his $20 million dollar pay days to cover the tax lien. If not, the Rush Hour star with a criminal history could find some of his expensive luxury assets seized or he might have to have an auction like boxer Thomas Hearns to cover the tax bill. With a criminal history, Tucker needs to put these problems behind him.

Tax Lien Filed Against Chris Tucker

Tax Lien Filed Against Chris Tucker

Tucker is the latest celebrity to be named and shamed as indebted to the already financially struggling state. Finding fame in Friday with Ice Cube and the Rush Hour films with Jackie Chan, Tucker became infamous for being extremely difficult to work with on a movie set, throwing tantrums and screaming fits. Even though he has made millions in earnings he has failed to be compliant with California tax laws for several years now and that has just all caught up with him.

Since California is in such a drastic financial crisis, they are coming after delinquent taxpayers with a vengeance. The California Franchise Tax Board has been given a mission to collect all delinquent tax bills owed so they can help the state rescue itself from the financial crisis. Supposedly, Tucker has been talking to Ice Cube about starring in a third movie to complete the Friday. In addition, it has been rumored that Quentin Tarantino wants to make a war movie with Tucker and Brett Ratner is developing a film with Tucker about the personal valet to Frank Sinatra.

Chris Tucker Owes Back Taxes To California FTB

Chris Tucker Owes Back Taxes To California FTB

Without question, Tucker should hop on one of these movie roles and restock his finances. In addition, he should contact a tax professional like the tax experts at the Tax Resolution Institute. Beyond having experience helping high profile celebrities with tax problems, TRI knows how to provide wealthy individuals with effective financial and tax planning so nothing bad happens in the future. With a strong hand at the wheel, Chris Tucker’s financial life can steer right back on track.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Lien Problems, Tax Relief Tagged With: , , , , , , , , , , ,
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