   |
            |
IRS Times & Inquirer Volume V, Issue 8.1 Lawmaker Indicted for False Returns A federal grand jury indicted Nathan H. Suzuki, 54, a member of the Hawaiian state House of Representatives, with three counts of tax evasion and two counts of willful failure to disclose financial interests in Hong Kong and the Kingdom of Tonga. Suzuki, 54, submitted false individual federal income tax returns for the years 1995, 1996 and 1997, the indictment alleges. The indictment also alleges that Suzuki transferred money to accounts that he controlled in Hong and the Kingdom of Tong. What’s more, Suzuki authorized one of the money transfers to a Tongan bank account by using a fax machine at the Hawaiian Home of Representatives. According to evidence submitted, Suzuki deposited approximately $4 million into overseas banks in 1995, $3.9 million in 1996, and $615,000 in 1997. If convicted, Suzuki faces up to 10 years in prison for not disclosing his foreign investments and a fine of up to $500,000. He also faces up to three years in prison and a $250,000 fine for each of the three counts of filing false federal income tax returns.
California Man Pleads Guilty to Refund Scheme Henry Maurice Hunter claimed the IRS owed him more than $270,000, and he had the documents to prove it. The only problem was the documents were false. Hunter pleaded guilty to obtaining false W-2 forms on behalf of himself and others and submitting those W-2 forms to the IRS in order to procure refunds. The W-2 forms used the claimant’s real name and an amount of withheld income that entitled the claimant to the Earned Income Credit, a subsidy for low-income families. The average fraudulent refund was approximately $4,300. Hunter faces a maximum sentence of five years in prison and up to a $250,000 fine.
Disbarred Attorney Charged, Evasion A federal grand jury in Dayton, Ohio, indicted Fuad B. Nasrallah, 44, on charges of bank fraud and tax evasion. Nasrallah allegedly used a “check-kiting” scheme that netted him $16.5 million in 4,300 transactions. He didn’t claim the income on his returns. ”The indictment alleges that Nasrallah set up a scheme involving multiple bank accounts in which he would write checks from an account with uncollected funds and deposit them into other accounts he controlled, a practice known as ‘check-kiting’,” said U.S. District Attorney Gregory G. Lockhart. Nasrallah practiced immigration law in Ohio from 1996 to 1998, when the Ohio Supreme Court disbarred him. The indictment also charges Nasrallah with tax evasion from 1996 to 1998. He allegedly claimed a taxable income of $129,801 for 1998 when he knew his taxable income was substantially greater.
Thank you! Thank you! Thanks to YOU, the word is spreading. Thanks to my clients and friends who graciously referred me to their friends, clients and relatives last month! I enjoy building my business based on the positive comments and referrals from people just like you. I couldn’t do it without you!
IRS Will Audit 50,000 Taxpayers Randomly, Some Line by Line Tax cheats beware. You could be among the 50,000 taxpayers the Internal Revenue Service will audit this year as part of the first random IRS audits since 1988. Of the 50,000 random audits, 2000 will be “calibration” audits, which check tax returns line-by-line. The federal government criticized line-by-line audits in the mid-90s, when taxpayers complained to Congress that IRS agents forced them to defend every single line of their tax return. However, in our post-Enron America, Lawmakers have become more receptive to allowing methods that ensure proper accounting and tax payment from both corporations and individuals. Because the audits are random, the IRS stressed, the audits are not meant primarily to catch tax cheats. The data gathered during these audits will help IRS agents identify those who may be the most likely tax cheats in the future. “The information from these audits will allow the IRS to target its limited resources on examining those taxpayers who are most likely to be up to no good, while leaving honest taxpayers alone,” Sen. Charles Grassley, R-Iowa, commented to the Wall Street Journal.
FEDS CLOSE DOWN TAX EVASION BUSINESS Since 1985, Honolulu resident Royal LaMarr Hardy, a.k.a. Royale LaMarr Sounet, has profited from a tax evasion scheme he sold in Hawaii, Alaska, Washington, Oregon, California, Texas, Florida, South Carolina and Michigan, alleges a federal indictment. Hardy’s illegal business sold fraudulent bankruptcy filings, annual statement packages in lieu of filing federal or state income tax returns, and trust schemes. The indictment also names Ursula A. Supnet, 44, Michael L. Kailing, 45, Fred M. Ortiz, 58, and Terry Leroy Cassidy, 50, as co-conspirators. If convicted, Hardy and Supnet both face up to 10 years in prison and a $500,000 fine. Kailing, Ortiz and Cassidy face five years in prison and a $250,000 fine.
FLORIDA MAN ARRESTED FOR TAX EVASION Internal Revenue Special Agents arrested Clearwater, Fla., resident Dana Carl Sjostedt for allegedly attempting to avoid paying income taxes. A federal grand jury indicted Sjostedt, alleging that he willfully evaded federal income taxes for the years 1995, 1996 and 1997. According to the indictment, he owes $40,225.31 for 1995, $37,686.62 for 1996 and $115,588.06 for 1997. If convicted, Sjostedt faces a maximum of 15 years’ in prison.
ILLINOIS RESTAURANT OWNER PLEADS GUILTY TO FALSE TAX RETURNS Jerome H. Vogel, 55, owner of Elder’s Restaurant in Quincy, Ill., pleaded guilty to two counts of tax evasion. Vogel admitted he filed a corporate tax return for Elder’s Restaurant in 1995 that understates receipts by $67,245 and understated dividends by $1,197. On the same return, Vogel also included $3,785 as expenses, when the funds were used to purchase shares of stock in GTE and Coca-Cola. For the 1996 tax year, Vogel did not report $11,153 in capital gains and $81,344 he received from Elders in stock of GTE, Coca-Cola and Pepsi. He faces up to three years in prison and a fine of up to $250,000.
THREE FLORIDA RESIDENTS SENTENCED U.S. District Judge Steven D. Merryday sentenced three Florida residences for attempting to cheat Uncle Sam. Wendell Mullis received eight months in prison and three years of supervised release; Carol Mullis three years of probation; and John Geisler three years probation. Merryday also ordered the three to make full restitution to the IRS. Wendell and Carol Mullis owed $31,027, while Geisler owed $14,653.
LAW ENFORCEMENT OFFICER INDICTED A federal grand jury in Arizona indicted immigrations inspector Jose K. Livanios, 44, and his wife, 46-year-old Leticia Livanios, for federal income violations. According to the indictment, the two filed false income tax returns for a three-year period. If convicted, they could receive three years in prison and a fine of up to $250,000.
“Who Else Wants To Win A $250 Transferable Gift Certificate?” Take my Trivia Challenge and you could win too! This is one of my favorite sections. Each month I’ll give you a new trivia question. The first THREE people who call my office with the correct answer win a free $250 reduction on any IRS service I provide. (One per client, please) And best yet, your certificate is transferable. Use it yourself, or give it to a family member or special friend and help them save money. Take your best guess, then call me at 732 240 4055. This Month’s Mega Trivia Question . . . In 1998, which state elected an independent candidate governor? a) Florida Call me right now with your answer! 732 240 4055
IRS Question Corner… Question: I’ve hidden money in a Bahamian bank account for several years using those funds to pay my credit card bills. A colleague, who also does this, showed me how it worked as a way to avoid paying income taxes. Until now, I’d thought it was foolproof. Now I hear the IRS has requested records from American Express and MasterCard. I’ll be busted. What can I do? Answer: You are among as many as 2 million people the IRS believes has hidden money in offshore accounts and used the funds to pay off credit card bills. Until recently, it’s been a tax-evasion scam the IRS has known about but has been unable to investigate fully. The release of information from American Express and MasterCard, however, marks a fundamental change. With this information, the IRS will be able to pinpoint exactly who has been hiding money offshore. As you probably realize, Uncle Sam won’t look kindly on Americans who have knowingly avoided income taxes for a period of years. But you can be smart about this. The IRS goes to great lengths and spends many hours in an effort to find and catch tax cheats. Once they catch someone, they prosecute. But a taxpayer who comes forward to the IRS, admits he owes, and asks to settle up will be received kindly by the agency. If you come forward before the IRS knows about you, your penalties will be much less severe. The first thing you need to do is find a qualified tax professional. He or she will determine how much money you owe the IRS, examining your finances with a fine-tooth comb to ensure that you do not pay the IRS any more than you owe. Once a figure has been established, you and your tax professional will meet with IRS agents and come to a compromise. If you cannot pay the full amount you owe, which is common, the IRS may be willing to enter an Offer in Compromise that could reduce to your debt to pennies on the dollar. That’s what I do. I’m an IRS Problem solver and I may be able to help. For a free, no-risk consultation, please call my office at 732-240-4055. I’d Like To Hear From YOU! Whether you’d like to avoid the IRS, contact the IRS, settle with the IRS or just want to refer a friend, relative or client, I’d love to hear from you. I would be happy to provide you or that special person you refer a no-obligation confidential consultation to explain every option available to solve IRS problems. David A. Semanchik, Esq. Copyright © 2001 USTC. All rights reserved. |
 |
|
|
|
