Fraudulent Tax Return Scheme Involves Hiring Postal Carriers

Anthony Gosha, aka Boo Boo, of Phoenix City, Alabama, was arrested by federal agents in July 2017 on charges of filing fraudulent tax returns, conspiring to commit mail fraud, wire fraud and aggravated identity theft.

The indictment alleges that Gosha stole over 7,000 ID’s and used those to file phony tax returns with refunds totaling over $19 million.

Some of the ID’s were stolen from an Alabama state agency, and Gosha also used Electronic Filing Identification Numbers in the name of a fake tax prep business in which they used to file the returns.

On those returns, they instructed the IRS to either issue prepaid debit cards or U.S. Treasury checks.  Gosha recruited several postal carriers to provide addresses on their mail routes to which the refund checks could be sent.  The checks were then cashed at various check cashing businesses in Alabama and Georgia.

If convicted on all charges, Gosha faces up to a maximum of 30 years in prison plus a minimum of 2 years for each count of identity theft, supervised release, restitution, forfeiture and monetary penalties.

Get Fired for Misconduct and Performance Issues? No Problem! The IRS Will Rehire You!

In February, 2016, Internal Revenue Commissioner John Koskinen spoke to the Senate Finance Committee and assured lawmakers that the problem of rehiring employees behind on their taxes, had past conduct or performance problems would be addressed.

But despite these promises, auditors found that the IRS rehired 200 former employees that were terminated for issues ranging from falsifying employment forms, unauthorized use of taxpayer accounts, misuse of email or property, workplace disruption, and violations of the Internal Revenue Code. Four of the rehired employees cheated on their own taxes and another four were found to have improperly accessing taxpayer records. In addition, one employee had several misdemeanors for theft and a felony for possession of a forgery device.

The Treasury Inspector General for Tax Administration has recommended to the IRS Human Capital Officer to increase the amount of hiring officials and give them increased access to job candidates’ past performance records and require that the basis for rehiring them be clearly documented.

The IRS Smells Something Fishy with Alaskan Couple

Commercial fisherman from Alaska, Archie and Roseann Demmert were charged in federal court with four counts of willful failure to pay individual income tax. Information obtained by the court shows a long history of not paying their taxes, going back over 13 years, in which they owed the IRS over $400,000, not including penalties and interest.

The arraignment has not been scheduled yet, but the couple faces a maximum sentence of one year in prison on each count, as well as supervised release, restitution and penalties.

Rapper DMX’s Income Tax Payments are MIA

DMX, the recording star and actor, whose real name is Earl Simmons, surrendered to federal authorities after being charged with 14 counts of tax-related criminal charges totaling $1.7 million in tax liabilities.

It’s alleged that Simmons avoided using his personal bank accounts, and instead used the accounts of other individuals, including his business manager and lived mostly on cash. According to the indictment, Simmons earnings from 2002 through 2005 went unpaid. Authorities say he listed his income in 2011 and 2012 as “unknown”, when he actually made $353,000 in 2011 and $542,000 in 2012.  On his 2013 tax return, he reported earning $10,000 of income when in reality he earned $250,000 that year. In total for the years 2010 to 2015 Simmons earned over $2.3 million.

Simmons appeared on the TV show “Celebrity Couples Therapy” and was paid $125,000, but refused the first installment check as taxes were withheld.  He went to the producer of the show and demanded a new check for the full amount, which he got.

If convicted on all counts, Simmons could face a maximum of 44 years in prison, plus monetary penalties and restitution to the IRS.

Your IRS Questions Answered Here…

Question: I received a Notice of Federal Tax Lien via certified mail for unpaid back taxes and I’m scared and don’t know what to do.  Can you help?

 

Answer: Yes. A Notice of Federal Tax Lien (NFTL) is public record and is generally filed with the County Recorder where you reside.  A federal tax lien will also negatively impact your credit report scores.  It is notice to all your other creditors that the IRS has a secured interest in all your real and personal property you have now and acquired in the future.

 

A federal tax lien will make it very difficult, if not impossible, for you to purchase a home, vehicle and other property on credit.  It may also prevent you from accessing the equity in real property you may have built up over the years.

 

However, the IRS has several different solutions that can resolve your NFTL if you qualify.   You can resolve a federal tax lien by paying it in full or if that is not an option you can find out if you qualify for a “Release of Lien”, a “Lien Subordination”, a Lien Discharge” or “Lien Withdrawal”.  It is important to keep in mind that IRS problems didn’t just happen overnight and will take some time to resolve.  The good news is that generally you won’t have to meet or even speak with the IRS while we’re retained.   It’s important to consult with a tax resolution professional to see which Lien relief solutions you may be eligible for before the IRS starts enforcing aggressive collection action against you. We can help protect what you have and preserve your rights!!

Owner of TNT Tax Services Gets Explosive News from the IRS

Timothy Harris, of Danville, VA pled guilty to aiding in the preparation of a false tax return.

Documents filed in court showed that Harris used his businesses TNA and TNT Tax Services to prepare and file false tax returns claiming bogus business losses to seek refunds that his clients were not entitled to receive, causing a tax loss  to the IRS of more than $250,0000.  Harris faces a maximum of three years in prison plus restitution and monetary penalties.

Televangelist Needs His Own Miracle after IRS Indictment

Todd Coontz, a North Carolina televangelist was indicted on charges of tax fraud for non-payment of income taxes for a 10 year period as well as filing false returns for 2010 through 2013. The amount of the tax liability owing is more than $326,000.

Coontz, who “promised financial miracles for people who sent money to his ministry” with such claims as “You need to plant the $273 recovery seed.  I’m only going to give you two or three minutes to respond.”

Coontz also purchased a 2011 BMW, a 2011 Regal 2500 boat, a 2012 BMW convertible, a 2011 Lexus, a 2011 Land Rover, a 2006 Ferrari, a 2012 Maserati, a 2013 BMW,  a 2013 Land Rover and a 2012 Ferrari with funds through his corporation.  The payments for these vehicles were treated as business expenses on the corporation and ministry’s accounting records even though they were driven by family members and no records were kept about the business use of the cars.

The ministry also purchased a $1.5 million condominium and claimed $200,000 for clothing purchases as a business expense.

The indictment also states that Coontz hid income from the IRS by claiming travel as a business expense while at the same time, receiving travel reimbursement that he kept as personal income, and billing the church for first-class airfare that he did not actually purchase.

Coontz could face up to 15 years in prison if convicted on all counts.

‘Everything is Not Coming up Roses’ for Flower Shop Owner

Adrian Benitez and Jose Ramirez, co-owners of a Great Neck, NY flower business, pled guilty in U.S. District Court to charges of corruptly endeavoring to obstruct and impede the internal revenue laws.

Between 2007 and 2012, the pair diverted more than $1 million in sales to their personal bank accounts instead of their business account.  They directed their customers to pay in cash, or had them pay with a check made payable to cash or themselves personally.  Benitez and Ramirez hid these assets from their tax preparer so the returns filed did not disclose any of the funds they diverted on both their personal and business income tax returns.  The loss to the IRS is approximately $235,805.

No sentencing date has been set, but Benitez and Ramirez each face a maximum sentence of three years in prison, a period of supervised release, restitution and monetary penalties.

Funny Tax Quotes

“Income tax has made more liars out of the American people than golf.”

-Will Rogers

 

“The hardest thing in the world to understand is the income tax.”

-Albert Einstein

 

“Today it takes more brains and effort to make out the income tax form that it does to make the income.”

-Alfred E. Neuman

 

“Did you ever notice that when you put the words, “The” and “IRS” together, it spells “THEIRS?”

-Anonymous

 

“People who complain about taxes can be divided into two classes:  men and women.”

-Unknown

 

“Few of us ever test our powers of deduction, except when filing out an income tax return.”

-Laurence J. Peter, author

 

“Some taxpayers close their eyes, some stop their ears, some shut their mouths, but all pay through the nose”

-Evan Esar

Teller at Check-Cashing Business Gets Bounced by the IRS

Krystal Proctor, a former teller at a check-cashing business, was indicted by a grand jury in the District of Maryland with theft of public money and conspiring to defraud the United States.

It’s alleged that from 2011 through 2013, Proctor and unnamed co-conspirators filed false tax returns with the IRS using stolen IDs. Refund checks were taken to Proctor, who then entered false information into the check cashing business’s database.  Proctor processed the stolen checks under the names of existing customers instead of the individuals named on the checks.

According to the indictment, Proctor cashed over 100 checks totaling more than $500,000.

If convicted, Proctor faces a maximum sentence of five years in prison for conspiracy and 10 years for each count of theft of public money.  She will also have to pay restitution and penalties.

A trial date is pending.