The Potential Consequences of Not Filing Tax Returns (Part 2)

In the first part of the two-part series, the Tax Resolution Institute examined what triggers an IRS investigation, and the first round consequences that come from not filing tax returns.  In the second part, we will look at how not filing a return can become a criminal matter if the IRS believes you willfully chose to not file your income tax returns.  If willful tax evasion is suspected, IRS Criminal Investigation Division (CI) may be called upon.  This is the last thing you want to face if you have not filed a return.  In addition we will look at what [...]

Texas Doctor Prosecuted By The IRS For $2.9 Million In Income Tax Debts And Willful Tax Evasion

Being prosecuted by the IRS, Texas Doctor Anthony Sertich was caught cheating on his personal income taxes while also withholding the payroll taxes of the employees in his medical office. As a result, he’s in big trouble with the Internal Revenue Service. If you are a doctor and you find yourself financially underwater, don’t make the same mistake that Sertich did. This ear, nose and throat doctor got so far behind that his original tax bill has nearly doubled and continues to increase. Now he’s being prosecuted by the IRS for willfully evading his personal income taxes and a failure [...]

IRS Income Tax Underpayment Of Over $ 1 Million Submits MMA Pioneer Royce Gracie To IRS Scrutiny

Even if you are a legendary MMA fighter, IRS income tax underpayment is a big mistake. Before his return to the cage in Bellator 149 to face old nemesis Ken Shamrock, UFC Hall of Famer Royce Gracie finds himself in a serious fight with the IRS over his taxes. Di Gracie rightfully claimed a tax credit for the poor or did he commit fraud in order to reduce his tax bill? Did Royce Gracie try to submit the IRS by illegally claiming the Earned Income Credit, a tax subsidy designed for low-income working families? MMA Pioneer Gracie & IRS Income [...]

Two Billion Dollar IRS Tax Fraud Case Could Be The Biggest Ever

In early January, the IRS is going to court to settle a humongous tax fraud case. Texas tycoon Sam Wyly is set to face off against the Internal Revenue Service at trial over more than $2.2 billion the agency says he owes for using offshore trusts. The offshore trusts resulted in what the Internal Revenue Service is calling one of the largest tax fraud cases in U.S. history. The Tax Resolution Institute understands if your tax problem with the IRS seems tiny in comparison, but it still needs to be handled. Huge IRS Tax Fraud Case Biggest IRS Tax [...]

California Tax Return Preparer Pleads Guilty To Million Dollar Tax Fraud Scheme

In California, Nancy Hilton, the former operator of a Moreno Valley based tax preparation business pleaded guilty today to a massive scheme to defraud the Internal Revenue Service of millions of dollars. By filing of bogus tax returns claiming tax refunds, the tax preparer defrauded the federal government while placing her clients in jeopardy. Hilton wanted a shortcut to easy money, leading to criminal acts that defrauded the government and placed clients, both unaware and colluding, in serious danger. California Tax Return Preparer In Trouble With a traditional CPA firm backing our business, the tax resolution specialists at the Tax [...]

Risks To The Small Business Owner Intensified After Employment Taxes And Trust Fund Court Decisions

Problems with employment taxes and the employee trust fund can be the death knell for a small business owner. The California District Court’s decision in United States v. Guerin illuminates the personal risks that small business owners and company executives face in regards to the trust fund and employment taxes. Responsible officers can face personal liability for their company’s unpaid employment taxes if the failure to pay over the taxes is determined to be willful. Risks To The Small Business Owner The Judge Does Not Care For Executive Excuses What the Guerin decision truly demonstrates is that willfulness is not [...]

Tax Resolution Institute Warns Against IRS Phone Scams By Criminals Impersonating IRS Agents

(Note - A portion of this blog is excerpted directly from the IRS website and the IRS update about the phone scams) IRS phone scams by criminals impersonating IRS agents continue to be a huge threat. Threatening phone calls demanding money by scam artists remain near the top of the annual "Dirty Dozen" list of tax scams for the 2015 filing season. The Internal Revenue Service highlighted this problem in an announcement on January 22, 2015. IRS Phone Scams & The Dirty Dozen The Dangers of IRS Phone Scams Illuminated Russell George, Treasury's inspector general for tax administration, [...]

Court Case Makes IRS Substitute For Return (SFR) Kiss Of Death For Discharging Tax Debts In A Bankruptcy

According to Mallo v. IRS, No. 13-1464 (10th Cir. 2014), a taxpayer can no longer discharge an income taxes liability in a bankruptcy if the IRS filed a Substitute For Return (SFR) for the taxpayer. If an untimely 1040 Form, filed after the Internal Revenue Service (IRS) has assessed the tax liability, is a tax return for purposes of the exceptions to discharge in section 523(a)(1)(B)(i) of the Bankruptcy Code, it is no longer considered valid. Such an update is essential because it implies that if a taxpayer wants to discharge a tax liability in a future bankruptcy, they better first file their [...]

Watch Out For Criminal Tax Evasion As The Department Of Justice Pushes Judges For Prison Sentences

When it comes to criminal tax evasion, the Tax Resolution Institute has seen a major shift in the past year in relation to sentencing. The Department of Justice is pushing judges to sentence defendants guilty of criminal tax evasion to prison. The clear message being sent is criminal tax evasion is a crime that deserves the punishment of incarceration. If you are guilty of criminal tax evasion and have not been caught yet, the time to take action is now to clean up the mess. Criminal Tax Evasion A Serious Offense When it comes to taxpayers that have willfully underreported [...]