Business Partners’ $16M “Under the Table” Scheme Faces Sentencing

The co-owner of J&J Drywall, Jesus Jose Mendez, pleaded guilty to defrauding the IRS of more than two million dollars.

From 2013 to 2017, Mendez and his business partner, Jamie Zambrano, used check cashing businesses to cash more than 600 business checks totaling more than 16 million dollars. While under surveillance, Mendez and Zambrano cashed checks in Rhode Island and then took backpacks full of cash to construction sites, where they paid day laborers in cash.

During that time the business partners deposited four million dollars into their business bank accounts, often in amounts less than $10,000, to not attract any attention to themselves. They had a small number of employees on legitimate payroll, but the rest were paid under the table, eliminating the need to pay employment taxes.

The IRS estimated the federal tax loss at $2,821,463 and the Massachusetts Department of Labor calculated the loss of unemployment contributions at $62,730. Mendez is awaiting sentencing and Zambrano is on the run.

Contact McCauley Law Offices, P.C. today to discuss your TAX JAM and get the IRS off your back!

Employee Hustles Small Town out of Thousands

Erin Hossler, the secretary/ treasurer of the Cressona Borough in Pennsylvania, was found guilty in federal court of tax evasion.

Hossler filed no tax returns in 2015, 2016 and 2017. During that time she stole funds from her employer by paying her personal bills online using the borough’s bank account, and by forging signatures on unauthorized checks made out to herself.

To cover her tracks she altered federal records and withheld payment of employment taxes for borough employees. She also altered an audit from an independent consulting firm to make it appear as if the firm approved of the borough’s finances.

Hossler was sentenced to 15 months in federal prison and ordered to pay $153,539 in restitution to the IRS. Prior to the federal case she was found guilty of embezzlement in state court and served 12 months in prison.

Contact McCauley Law Offices, P.C. today to discuss your TAX JAM and get the IRS off your back!

Your IRS Questions Answered Here…

Question: I’ve been getting notices from the IRS saying I owe them for back taxes. This is stressing me out and starting to affect other areas of my life. What should I do?

Answer:  Owing money to the IRS or State can be intimidating and throw your life out of whack but ignoring these notices will only make things worse. The IRS has several debt settlement options but it’s important to take action before they garnish your paycheck and/or levy your bank account.  One of these options is an installment agreement payment plan.

There are several types of installment agreements.  One of them, is called a “partial pay” installment agreement where it’s possible to reduce the total outstanding balance owed the IRS based on how much time is left on the 10-year collection statute. The IRS does not “advertise” this option for obvious reasons. We know how to obtain this solution, but you must take the first step and call us to see if you qualify for it.

You should have a professional expert in your corner to help you deal with the IRS.  You can’t do this on your own, you’ll get crushed. As a matter of fact, going or talking to the IRS without representation could be the worst thing you can do. It’s like going to court without a lawyer. The IRS does not have your best interests at heart.

We at McCauley Law Offices are experts in IRS tax problem resolution and help taxpayers with their TAX JAMS every day.  There is a solution to EVERY problem. Call us today! 877-TAX-JAMS for a FREE confidential consultation

Phoenixville, PA Couple Settles $127k IRS Tax Debt for 16%

After trying to deal with the IRS themselves for several years this couple came to our firm seeking professional assistance.  They owed the IRS roughly $127,061 and had been jumping in and out of Installment Agreements for years and tried their own attempt and an Offer in Compromise, unsuccessfully.  After reviewing their case we determined that they did qualify for an OIC; we just had to push the IRS to fully comprehend why a settlement made sense.  After submitting their OIC and negotiating with the Settlement Officer, we were able to settle their $127k tax debt for just $20,799.

Unity Tax Preparers United in Crime and Time in Prison

Nikency Alexis, the owner of Unity Tax, and Thony Guillaume, who worked for the company as a tax preparer, have been sentenced to 45 months and 40 months in prison, respectively, for filing false tax returns.

From 2011 to 2016 Alexis and Guillaume prepared returns for clients that claimed business and education expenses that their clients never incurred. When they found out they were being investigated by the IRS the two continued preparing the false returns but listed other individuals as paid preparers.

In total, Alexis and Guillaume claimed more than 2.8 million dollars in fraudulent returns from the IRS.

In addition to the prison sentences, Alexis has been ordered to pay $464,006 in restitution to the IRS, and  Guillaume has been ordered to pay $221,823.

Contact McCauley Law Offices, P.C. today to discuss your TAX JAM and get the IRS off your back!

IRS Abates over $40k in Penalties and Cuts Taxpayer a Refund Check

In any case, it is important to conduct proper due diligence to ensure that you are representing your client to the fullest extent of the law, and putting them in the best possible position given their circumstances. This client came to our firm after working with another attorney who was more interested in appeasing the IRS than negotiating a deal that served his client well. The IRS was forcing this client to sell his assets and pay his back tax debt in full. Once he had sold pretty much everything, he decided that he had enough and wanted to seek outside counsel and after reviewing his case we determined that he qualified for penalty abatement.

Our firm was able to successfully abate $40,290 in penalties, which paid the remainder of the outstanding tax liabilities and left a surplus credit which resulted in the IRS cutting our client a refund check. At McCauley Law Offices, P.C., we are always here to discuss your circumstances and determine which option is best for you and your family and business. If you think you may qualify for a penalty abatement, or you are unhappy with your current representation, contact us today!

Contact McCauley Law Offices, P.C. today to discuss your TAX JAM and get the IRS off your back!


Greenwich CT Taxpayer Owed IRS $215,201 and Settled for $500

Yes, you read that correctly.

When this Taxpayer reached out to our office, he and his wife owed the IRS an astounding $215,201.00 in back taxes.

The amount of stress was so substantial that it was impacting their marriage and their ability to earn income under it’s crushing weight. Our first focus for this self-employed client was getting them “tax compliant” and setting them on a path to pay future taxes timely and appropriately as they earned income. Once we ensured that the client paying was the accurate estimated tax payments, we were able to pursue an Offer in Compromise with the IRS. In this case, our firm was able to prove to the IRS that it was in the best interest of the taxpayer and the IRS to reach a settlement agreement and we worked to negotiate a $500.00 payment to resolve their IRS tax debt. Now that the stress and sleepless nights are behind them, our clients have “gotten back to work” and their income has increase substantially.

If you are self-employed and are suffering from sleepless nights due to back tax liabilities, call our office to see whether you qualify for a settlement with the IRS too!

Accounting Manager Floors Employer with Nearly Two Million Dollar Theft

The accounting manager for a flooring company in Ohio has been charged with embezzling more than 1.8 million dollars.

Joan Dinoto worked for the company from 2013 to 2020 and stole the money by falsely inflating her salary, using her employer’s corporate credit card for personal expenses and forging checks to herself. To hide the fraud she altered the company’s accounting records.

From 2015 to 2020 Dinoto did not report more than a million dollars of the stolen money on her tax returns.

In 2020 she left the flooring company and began working for a lighting company under a fake social security number. She then used her real social security number to apply for unemployment benefits.

Dinoto faces up to 30 years in prison and one million dollars in fines, in addition to restitution of 1.8 million dollars to the flooring company.

Taxpayer in Wilmington Delaware Settles with IRS for $750

McCauley Law Office successfully negotiated an Offer in Compromise with Doubt as to Collectability Due to Exceptional Circumstance with the IRS whereby the taxpayer was able to settle their $36,568 back tax liability for $750.

In this particular instance, the taxpayer had the funds in order to pay the IRS in full, however, our firm was able to convince the IRS that it was both in their and the taxpayers best interest to settle.  This particular type of OIC is commonly referred to as an Effective Tax Administration.

To establish Effective Tax Administration, one must show that an exception circumstance exists, whereby the collection of tax would create an economic hardship, or there is compelling public policy or equity consideration that provide a sufficient basis for compromise.  This taxpayer was suffering from a medical condition that rendered them incapable of working and earning an income in the future.  The taxpayer was collecting Social Security Disability Income that provided for their current needs on a cashflow basis in addition to over $100,000 in cash and securities.  We were able to exhibit to the IRS that the taxpayers’ medical needs would increase over time whereby they would eventually need to use those cash reserves.

If you are in a similar position and would like to discuss the potential of settling your tax debts with the IRS, contact us today!