Office Manager of Supply Company Supplies Herself with Company’s Cash

The office manager of a contractors supply company in Illinois, Joan Chenoweth, has been indicted by a grand jury for embezzlement and for filing false tax returns.

Chenoweth controlled the company’s finances and had access to the business’s credit cards and bank accounts. In addition to writing company checks to herself, she paid personal credit card bills with company credit cards, and wrote unauthorized payroll checks to herself that exceeded her salary.

She avoided detection by making false entries into the company’s accounting program and by deleting true and correct entries. During a four-year period Chenoweth stole approximately $624,152.

In addition to the fraud charges, she is charged with filing false income tax returns for 2014 through 2017.

If convicted, Chenoweth will be required to pay restitution and penalties, and faces up to 20 years in prison.

Finance Director Steals Over 1.5 Million from School Board Goes to Prison to Learn a Lesson

Laurie Wade, the financial director for the Franklin County Board of Education in Kentucky, was sentenced to 10 years in prison for money laundering and filing false tax returns.

Beginning in 2011 and continuing through 2019, Wade wrote numerous unauthorized checks from the school board account to herself and made false entries into the company’s accounting program to cover her tracks.

Simultaneously, Wade served as the treasurer of the Leestown Gospel Church and controlled its finances with little oversight. Over a period of several years she used the Church to launder money she had stolen from the school board. She made repeated deposits into the church bank account and then wrote checks to herself, attempting to legitimize the stolen funds. It was a check from the school board for $89,100, deposited into the church account, that first alerted the FBI to Wade’s criminal activity.

Charged! And We Don’t Mean His Car!

Cory Beck, a senior manager in the information technology department at Tesla, the electric car maker, pleaded guilty to three counts of filing false tax returns after he failed to disclose more than $220,000 in income generated from selling MacBooks he stole from his employer.

Beck had access to the company’s vast array of computer products. He stole the laptops from October 2015 to March 2018.

He faces up to three years in prison and fines totaling $100,000 for each of the three counts he pleaded guilty to.

He Helped Millions Fight Off Viruses Then Hid His Millions from the IRS

John McAfee, the creator of McAfee VirusScan software, has been arrested in Spain and is awaiting extradition to the US on charges of tax evasion. He is accused of failing to file tax returns from 2014 to 2018 despite earning more than 23 million dollars during that time.

McAfee resigned from the company that bears his name in 1994, and during the last few years derived a lucrative income from speaking engagements, consulting work, crypto-currencies and selling the rights to his life story.

To evade paying taxes McAfee had his payments deposited into bank accounts and cryptocurrency exchange accounts in the names of nominees, and concealed assets, including a yacht and real estate, by putting them in the names of others.

Last year McAfee tweeted that he hadn’t filed tax returns for eight years because, “Taxation is illegal.” He faces up to 30 years in prison.

Did You Make Money with Cryptocurrency? How to Get Right with the IRS

For early adopters of Bitcoin, Ethereum and other popular cryptocurrencies, the profit potential has been simply stunning. While there have been some heart stopping moments and frightening ups and downs, the clear long-term trajectory has been upward.

If you are one of those early adopters who profited from the rise in cryptocurrency values, you are probably feeling pretty good about your decision. But your good fortune could soon take a dark turn, one that could leave you in hot water with the IRS.

After many years of taking a hands off approach to cryptocurrency investments, the IRS is now making up for lost time. At first, the tax agency seemed unsure how to calculate virtual profits or tax cryptocurrency gains, but now the rules are largely in place, and it is time for those who profited to pay up.

There has already been some movement on the cryptocurrency taxation front, and it is only a matter of time before the IRS takes notice of your holdings – and your profits. The tax agency has recently obtained data from major cryptocurrency exchanges, and letters are going out to large holders of these virtual currencies. But you should not simply wait for the IRS to contact you. The best approach is to do your homework now and make your plans for paying what you owe. Here are some simple tips to help you get right with the IRS.

Note: If you already have tax troubles or owe more than $10k to the IRS or state but can’t pay in full, contact our firm today. We help people find tax relief, file years of unfiled tax returns, and sometimes settle their tax debt for a fraction of what’s owed.

 

Learn the Rules

There has been a lot of confusion over how cryptocurrencies were to be taxed, and the IRS itself has issued a number of different rulings in that regard. With so much conflicting information, it is no wonder so many cryptocurrency investors chose to avoid the whole thing.

Studies suggest that only a small percentage of cryptocurrency investors have reported their holdings to the IRS. Some holders of cryptocurrency did not believe they were required to report their investments, while others assumed their transactions were anonymous. Now that the IRS has proven that neither contention is correct, it is time to learn the rules and follow the reporting requirements.

The IRS may have been slow to categorize cryptocurrencies, but the tax agency now has firm rules in place. If you hold cryptocurrency or have profited in the past, now is the time to learn the rules. Whether you do your own homework or seek out expert advice, the more you know the better off you will be.

 

Estimate Your Gains

Once you know the rules, the next step is to estimate your potential gains. The rules governing cryptocurrency profits are complex, but you should still be able to estimate the possible tax hit.

It may take some time to reconstruct the purchases and sales you made along the way, so take your time and gather as much information as you can. If you are missing some information, you may be able to find what you need through your favorite cryptocurrency exchange. Many major exchanges keep detailed records of purchases, sales and other cryptocurrency transactions. Once you know how much you made on those cryptocurrency transactions, you can work to calculate the taxes you might owe.

 

Work with a Cryptocurrency Tax Relief Expert

Tax calculations are not for the faint of heart, and it is easy to make a mistake. If you want to avoid problems with the IRS and head off any penalties and interest, you will need expert help and guidance.

The cryptocurrency market is still relatively new, and the current IRS tax treatment of these virtual assets is even newer. Even so, some tax experts have already started to specialize in these alternative investments, and seeking their expertise could help you pay what you owe while avoiding penalties and interest.

If you already have a tax preparer, start by asking about their experience with cryptocurrency investments. If your current tax advisor is not a cryptocurrency expert, it is time to shop around for someone who understands these unique assets and how they are taxed. It may take some time, but it is important to find an expert you can trust.

The IRS may have ignored the early days of the cryptocurrency revolution, but the tax agency is making up for lost time. Some early adopters have already received notices from the IRS, while others are scrambling to calculate their profits and pay what they owe. The tips listed above can help you develop a payment plan, so you can get right with the IRS before it is too late.

 

OWE BACK TAXES?

Our firm specializes in tax problem resolution. We serve clients virtually so don’t hesitate to reach out.  If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

Did You Know You Might Owe Taxes On Debt That’s Forgiven? Here’s How It Works.

When you owe creditors money that you can’t afford to repay, sometimes you may be able to get the debt forgiven or otherwise canceled.  When this happens, you no longer owe your creditors the money that you used to owe them.

The IRS, however, usually treats such canceled debt as income that you’ve received.  Income that you could owe taxes on.  If you fail to report it or fail to pay your taxes on the cancelled debt, you’ll end up owing penalties and interest and over time, that could be just as big of a hassle as your original debt.

Note: If you have any tax trouble or owe more than $10k to the IRS or state but can’t pay in full, contact our firm today.  We help people find tax relief, file years of unfiled tax returns, and sometimes settle their tax debt for a fraction of what’s owed.

 

When Do I Not Owe Taxes On Forgiven Debt?

In some cases, you may get an exemption and there are some circumstances in which you won’t owe taxes.

  • Your debt is discharged through bankruptcy proceedings:
    • If you are in serious financial trouble, you may file for bankruptcy and have your debts discharged by the court. Such debts, while they are forgiven, are not considered taxable.
  • You’re insolvent:
    • When you are able to settle with a creditor by paying them less than you owe them, your financial situation may be bad enough that you owe, in general, more than you own. If you are considered financially insolvent in this way by the IRS, you may have either part or all of your debt excluded from taxation. If you believe that you may qualify for insolvency exemption, you should hire a tax resolution professional to help make sure.
  • A canceled debt from friends or family: 
    • If you borrow from friends or family and have them forgive the debt, the money forgiven is considered a gift, and is not taxable income.
  • Tax-deductible interest:
    • If debt that is forgiven includes interest that is tax-deductible, the interest component does not need to be reported as taxable income. Discharged student loans are also usually exempt from taxation.

 

Including the forgiven debt in your tax return

If you don’t tell your tax professional about the forgiven debt, in most cases, you won’t know about paying taxes on forgiven debt until you receive a notice in the mail about it. Usually, a creditor who forgives you over $600 sends you a 1099-C form stating the amount forgiven. If the debt forgiven is exempt, you may need to fill out a Form 982 to state how much should be exempt, and why.

 

What do you do if you pay taxes on forgiven debt that should be excluded?

If debt forgiven is actually exempt from taxes, but you still pay, you’re allowed to amend your tax return for three years. You simply need to file Form 1040X, and mention your exemption on Form 982.

Working with forgiven debt can be complex. It is usually a good idea to hire a tax resolution professional to work out the details.

 

OWE BACK TAXES?

Our firm specializes in tax problem resolution. We serve clients virtually so don’t hesitate to reach out.  If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem. [add your contact page link].


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

Your IRS Questions Answered Here…

Question: I’m currently separated from my spouse, who owns his own business, and we are in the process of getting a divorce.  I have always filed jointly with my spouse and now the IRS is sending me notices stating I owe $35,000.  I have no idea how they are coming up with this amount as my spouse said he was paying the IRS.

Answer:  You may be able to avoid this liability entirely under the IRS’s Innocent Spouse Relief rules.  Under federal law if an income tax return is signed by both husband and wife, both spouses are 100% responsible for the taxes owed.  However, the law permits special consideration where a spouse cannot be held responsible for mistakes that are attributable to the other spouse.

If you meet the following criteria you may be able to apply for innocent spouse relief:  Your spouse didn’t report all their income; and you were not aware of it and no reason to know about it when you signed the tax return; and it would be unfair to hold you liable for the taxes owed due to your spouse’s error. If you feel you were deceived by your spouse or tricked into signing a return you thought was correct this will help your case too.  There are many other ways you may be eligible for relief under the IRS’s innocent spouse rules and we can help sort this out and determine the proper path for resolution.

Controller Takes Control and Funds Her Own Company

Sue O’Neill, controller for Marco Contractors in Pittsburgh, PA has been sentenced to 64 months in prison for wire fraud and filing false income tax returns.

O’Neill embezzled approximately 8.7 million dollars over a nine-year period from the family owned business. She used 6.7 million dollars of the stolen money to open Bulldog Contractors with a partner, and the remaining two million went into her personal bank account.

O’Neill bought two 1969 Ford Shelby GT500s for $165,000 each and spent $163,000 renovating a 1969 Ford Mustang. She also spent hundreds of thousands of dollars on a country club membership and jewelry and didn’t report any of the stolen funds on her tax returns.

In addition to the prison sentence, she is ordered to pay restitution of 8.5 million dollars to Marco Contractors, $215,000 to another Marco controlled company, and $428,000 to the IRS.

Avoid These 5 Common Tax Filing Mistakes That Can Get You In Tax Trouble

Whether you file the simple 1040EZ or a complex 1040 and a raft of schedules, making a mistake on your tax form could lead to big tax trouble. Something as simple as a math error or unsigned form could invite extra attention from the IRS.

The tax agency sees those mistakes every year, and IRS representatives warn taxpayers to be careful when filling out their forms. Even if you think you have everything filled out perfectly, it never hurts to double-check and look for these common tax day errors.

 

#1 – Assuming Your Tax Pro Prepared Your Taxes Properly

Blindly trusting your accountant or tax preparer to file your taxes correctly can be costly. Of course you want to assume they do a great job, and most tax professionals do, but letting them file without your thorough review is a mistake. We resolve back tax problems for people, and often what gets people in trouble is a simple mistake; like forgetting to report income, missing deductions, or taking too many deductions which can lead to an audit.

These are sometimes honest mistakes that if not caught early, can trigger red flags and have  the IRS sending you letters of balances due.  No one knows your financial situation better than you do so it’s important you double check your return so you’re not blindsided with an unwanted surprise.

 

#2 – Waiting Until the Last Minute

Filing taxes is stressful enough. You do not need to make things worse by waiting until midnight on April 15 to get your return in the mail. Give yourself plenty of time to gather all the necessary documents and complete your return.

Keep in mind that unexpected problems could interfere with your last-minute tax filing plans. Getting your taxes done early is the only way to protect yourself from unforeseen circumstances that can delay your tax filing.

 

#3 – Failing to File on Time

If you cannot file your return on time, you can ask for an extension by filling out a single form. Even if your documents are in disarray, there is no excuse for not filing on time. Filing an extension gives you six more months to get everything in order and complete your return.

Keep in mind that you will still need to estimate the tax you owe and make your payment, even if you file an extension. Filing an extension extends the amount of time you have to get your return to the IRS, but it does not provide a reprieve from your tax debt. If you wait to make your tax payment, you will get hit with penalties and interest.

 

#4 – Not Making a Backup or Keeping Good Records

Making backup copies of your tax returns, income documents and schedules is an essential part of tax planning and preparation. Set up a folder or file box and use it to store your tax documents as they come in, and then scan each one before you put it away.

Once you have completed your return, be sure to make copies of every document, including your W-2 form and tax schedules, before sending the return to the IRS. If you file electronically, be sure to save a PDF copy of your return before completing the final step. Save all of those electronic tax documents on your computer or cloud storage device. Ordering a lost copy of a past year’s return from the IRS is time-consuming and expensive. You can save time and money by making your own backup copies. If the IRS audits you or requests more information from you, all your records will be extremely helpful in the process.

 

#5 – Ignoring Letters From The IRS After You File Your Taxes.

Sometimes the IRS will send follow up correspondence, especially if you owe money to the IRS. It can be easy to ignore the first few letters. Even if you have the intention of paying your taxes soon you should still take action and either get on an installment agreement or reach out to a tax relief firm if your financial situation requires it.

 

OWE BACK TAXES?

Our firm specializes in tax problem resolution. We serve clients virtually so don’t hesitate to reach out.  If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

What is a IRS Levy? IRS and Other Asset Levies Explained

IRS and Other Asset Levies Explained

Falling behind on your debts is never a fun place to be. It’s less fun when a levy is placed on your assets. In this article, we take a look at what an IRS levy is, why it happens, and what you can do about it.

Note: If you have any tax trouble or owe more than $10k to the IRS or state but can’t pay in full, contact our firm today. We help people find tax relief. Often, we can resolve your IRS levy without you having to talk to the IRS. Call today.

Simply put, if you owe back taxes and you ignore the IRS, the IRS can seize your property, take money from your bank accounts, or sell your assets in order to satisfy the balance due.

The IRS will give you plenty of notices via mail before they take this step. If you do not satisfy the debt or make payment arrangements by the specified date, the IRS will attempt to take the amount of the levy directly out of your bank account.

Other types of levies

Private creditors may issue a levy against your bank account with a court order. Court orders are not required for levies by government agencies. The creditor must notify you of the upcoming levy at least 21 days before removing any funds from your account. You may not withdraw money or close the account during this waiting period.

Funds earned from child support, social security, unemployment, workers’ compensation settlements and certain other types of government agency payments are exempt from levy. You must request the exemption and offer proof of the source of the funds.

Wage Garnishments

Government agencies may also garnish an employee’s wages for back taxes, child support and other delinquent payments required by law.

The IRS has the authority to levy up to 85 percent of the employee’s paycheck. The levy notice will be sent to your company’s payroll or human resources department. You must then withhold the appropriate amount of money from the employee’s paycheck and send it to the IRS or state tax board. The employee must provide a wage garnishment release if he is able to work out a payment arrangement.

If you are behind on your taxes, the IRS may levy most payments from federal agencies. This includes railroad retirement benefits, Medicare supplier and provider payments, payments on contracts between your company and a government agency, federal retirement annuities and travel reimbursements.

You may apply for a hardship exemption if the levy will cause your company undue financial distress. Companies going through bankruptcy proceedings are automatically exempt from IRS levies.

Seizing Your Assets

The IRS may also seize your real estate and personal property such as a car or boat. You will receive a 30-day notice indicating that seizures will follow if you do not pay your outstanding taxes or contact the IRS to make payment arrangements. This authority also extends to property and money you own that are being held by another party, such as life insurance cash value. The government sells its seized property at auction to recover some of the funds owed by delinquent taxpayers.

What To Do If You Have An IRS Levy

Back taxes don’t just disappear if you ignore them long enough. Putting your head in the sand will cause the problem to get worse.

If you have back tax debt, we highly recommend you reach out to our firm first. Our clients never have to talk to the IRS, and tax resolution through our firm can save you money and time in the long run. You might also be eligible for other IRS relief programs or get your penalties reduced or removed. Reach out to our firm today for a consultation.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.