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IRS Times & Inquirer Volume V, Issue 8.3 Former Paterson, N.J., Mayor Pleads Guilty to Tax Evasion Martin G. Barnes, the former mayor of Paterson, N.J., pleaded guilty to mail fraud and tax evasion. Barnes admitted to accepting gifts from city vendors and then concealed those gifts from the state of New Jersey and the Internal Revenue Service. Assistant U.S. Attorney Perry A. Carbone estimated that Barnes, 54, concealed approximately $200,000 worth of gifts. He pleaded guilty to one count of filing a false income tax return and one count of mail fraud. Under his plea agreement, Barnes faces a reduced sentence of 24 to 37 months in prison. “This is a sad day for the city of Paterson but also a chance to move ahead with new, honest leadership,” said U.S. Attorney Christopher J. Christie. “Martin Barnes obviously fell far short in that regard.”
San Diego Doctor Pleads Guilty to Tax Fraud Dr. Rick A. Shacket had it all – a successful medical practice in beautiful San Diego, a luxurious lifestyle and $546,350 he never mentioned to the IRS. Earlier this year, Shacket pleaded guilty to conspiring to defraud the Internal Revenue Service by deceitful and dishonest means. According to his plea, Shacket and his former attorney, Russell D. Ward, diverted approximately $546,350 worth of funds from 1994 to 1999 from Shacket’s medical practice to personal use without reporting that money as income to the Internal Revenue Service. What’s more, Shacket and Ward attempted to conceal the money by funneling it through a fake corporation in Oregon called King Medical. Shacket then withdrew the money from King Medical using a false identify, Billy Daniel Ward, who was the missing and presumed dead brother of Russell Ward. “Dr. Shacket devised elaborate methods to conceal his income to intentionally evade his income taxes,” said Denise L. Rubin, special Agent in charge of IRS Criminal Investigation in San Diego. “IRS agents used their financial investigative expertise to unravel his web of transactions and follow the money trail.”
La. Man Sentenced on Tax Charges Walter D. Williams, 41, of Monroe, La., will spend the next four months in prison and the following four months in a halfway house because he tried to cross Uncle Sam. Williams previously pleaded guilty to filing nine false income tax returns in the name of five different individuals, all of whom happened to be friends or associates of Williams. He obtained the names and Social Security numbers while employed as a custodian at George Welch Elementary School. Williams made the false claims from 1997 to 1999 totaling $17,464 in fraudulent returns.
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Politically Connected Alabama Men Receive Prison Time James Butts, the former director of the Alabama Department of Transportation, and lobbyists John Teague and Johnny Moore were sentenced to prison time after pleading guilty to bribery and filing false income tax returns. Butts admitted that he accepted a $50,000 bribe from a theme park, Visionland, to build an interstate access ramp. Moore failed to report to the IRS $306,500, income he received as a direct result of Butts’ actions. Teague admitted to presenting a client with a false invoice for $2,500. The money then benefited both Teague and Butts. Moore was sentenced to six months in prison, one year of supervised release, a $1,000 fine and ordered to pay $267,991 in restitution for filing a false income tax return. Butt received 15 months in prison and Teague six months in prison for their crimes. “I hope the sentences send a strong message to the public officials and lobbyists,” said U.S. District Attorney Leura Canary. “…It is unacceptable to engage in profiteering at the expense of the public good and my office will vigorously pursue the criminal prosecution and incarceration of those who give or take money in order to corruptly influence the conduct of public business.”
MEMPHIS WOMAN CHARGED: FALSE CLAIMS Carol Lynn Robinson, a.k.a. Carol Lynn Edwards, of Memphis, Tenn., was indicted on 12 counts for allegedly filing false income tax returns and fraudulently using another person’s Social Security number. The indictment charges that Robinson filed nine fraudulent tax returns in the names of other individuals, claiming refunds ranging from $3,110 to $5,149. Additionally, Robinson was also charged with using another person’s Social Security in order to obtain employment fraudulently. If convicted, Robinson faces a maximum term of five years in prison and fine up to $250,000 on each of the 12 counts.
COUPLE CHARGED WITH FILING FALSE RETURN Jose A. Castillo, 48, and Rosa M. Castillo, 47, of Yuma, Ariz., were indicted for allegedly filing a false tax return for the year 1997. Additionally, Jose Castillo was charged with tampering with a witness. If convicted of filing a false income tax return, the two each face a maximum term of three years in prison and a fine of up to $100,000. If convicted of tampering with a witness, Jose Castillo faces a maximum term of 10 years in prison and a fine of up to $250,000.
MASS. CHIROPRACTOR INDICTED FOR EVASION John Bisante, a 37-year-old former chiropractor in Springfield, Mass., has been charged with tax evasions for the years from 1994 to 1998. According to the indictment, Bisante operated the chiropractic practice, Bisanti Chiropractice, from 1988 to 1995. In 1995, he merged with Baystate Chiropractice, his brother’s practice, and the new company folded under the corporate umbrella of B.B. Enzo dba Bisanti Chiropractice. The indictment alleges that Bisante placed his major assets, including a Ferrari, into two trusts as a way to avoid paying income taxes. Additionally, Bistante sold his interest in the chiropractice practice but continued to receive payments to his trust, the indictment alleges. If convicted, Bisante faces up to five years in prison and a fine of up to $250,000.
TAX PROTESTOR GETS ONE YEAR IN PRISON James Stuart Lake, 52, of Corona Del Mar, Calif., was sentenced to one year in prison for failing to file income tax returns for the years from 1994 to 1996. Lake had written letters to the IRS claiming that his income could not be calculated in wages and that, as a Native American, he was not subject to the laws of the U.S. Congress.
MAN GETS 18 MONTHS FOR FILING FALSE RETURN Keith J. Osborne, 62, of Annapolis, Md., has 18 months to think about his past mistakes, as he was sentenced to that term for filing a false income tax return. Osborne, who patented a successful gasoline-pumping system, failed to report personal income of approximately $1.4 million in 1994 and $764,000 in 1995. He owes the IRS $851,000 on that income.
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IRS Question Corner… Question: I’ve heard of all those scams and scheme people use in an effort to avoid paying income taxes. I would never go that far. As an independent contractor working in the high-tech industry. I’ve made a substantial amount of money over the year. My trouble: hanging on to it. Because of this, I’ve amassed a huge debt to the IRS and the bursting of the dot-com bubble isn’t helping me pay it off. What can I do? Answer: Yours is not an unusual position, actually. During the economic boom of the late ‘90s, many Americans made fortunes – in particular, those working in the well-paying high-tech industry. When you make so much money, it’s hard to believe you can ever be in debt. But when you make that much money, it’s also easy to dig a hole with Uncle Sam. However, don’t fret. Since you know you owe the money and want to find a way to settle up, the IRS, believe it or not, will be more than happy to work with you. The IRS comes down hard on the ones who don’t want to settle up. In fact, you have a couple of options. The one best suited for you may be an installment plan. Yes, just like that installment plan you might receive from a furniture store, the IRS has one, too. Your qualified tax professional can negotiate a reasonable monthly payment. In deciding this amount, the IRS takes into account your income and reasonable expenses. In other words, you won’t be eating Ramen noodles every night to pay back Uncle Sam.
I deal with problems like yours every day. I’m an IRS Problem Solver. 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 Copyright © 2001 USTC. All rights reserved. |
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