April 2017


Tax Resolution  Times
"Read About Taxpayers with IRS Problems 
Find Out How to Solve Them" 


Inside this edition:
  • The IRS Puts the Brakes on "Denson's Fast Tax Services
  • Talk to Your Adult Children
  • About Tax Scams
  • Dentist Gets Drilled by the Federal Court
  • Owner of Iceoplex Skates on Thin Ice with the IRS
  • What is a John Doe Summons?
  • Pizza Store Owners Fail to Report a lot of "Dough" to the IRS
  • Delivery Business Owner Gets a Package from the IRS
  • IRS Question
  • Monthly Recipe - Brocolli Fritters
Have you visited the new SFS Tax Problem Solutions website yet? Check it out and let us know what you think. 

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View our videos on YouTube

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INSIDE THIS EDITION:
  • The IRS Puts the Brakes on "Denson's Fast Tax Services
  • Talk to Your Adult Children
  • About Tax Scams
  • Dentist Gets Drilled by the Federal Court
  • Owner of Iceoplex Skates on Thin Ice with the IRS
  • What is a John Doe Summons?
  • Pizza Store Owners Fail to Report a lot of "Dough" to the IRS
  • Delivery Business Owner Gets a Package from the IRS
  • IRS Question
  • Monthly Recipe - Broccoli Parmesan Fritters
Have you visited the new SFS Tax Problem Solutions website yet? 


Like us on Facebook

View our videos on YouTube

Follow us on Twitter


__________________________________

Please Leave a Review










Talk to Your Adult Children About Tax Scams 
Let your children know that the IRS will NEVER contact them by phone. If there is an issue with their tax return, the IRS will send a notice in the mail. If your child does receive a call, tell them to not share any information, or answer any questions, but to promptly hang up-no matter how threatening the person on the other end sounds. 
Dentist Gets Drilled by the Federal Court

A Washington state couple, dentist Dr. James Hood, and his wife, Karen Hood were found in contempt from a Federal Court for violating a previous permanent injunction requiring them to file payroll tax returns and pay payroll taxes in a timely manner.

The Court previously entered a permanent injunction against the Hoods and their entities to comply with federal employment laws.

The Court found the Hoods in contempt for showing a consistent pattern of disregarding their tax obligations by making incomplete employment tax payments, making dishonored payments and missing deadlines. The Hood's failed to pay their taxes for the fourth quarter 2016 by the end of January 2017. They also found that the Hoods attempt to make payroll tax payments were dishonored due to insufficient funds in their accounts.

As a result, the Court ordered the Hoods to close their dental business, cease operating as employers and barred them from opening any new businesses where they would serve as employers.

Refer a Friend, Family Member or Co-Worker Through April 14 and You Will Be Entered Into a Drawing to Win a Restaurant Gift Card (value $75.00)
Your referral must be a new client that has retained and paid for our services for any of 
 our services:  tax  representation, accounting services,  or tax preparation.
Delivery Business Owner Gets a Package from the IRS
David B. Schmitt of North Tonawanda, NY was sentenced to 30 months in prison and ordered to pay $748,459 in restitution for his conviction of tax evasion.

Schmitt, who operated three delivery businesses, attempted to evade payment of a large part of federal employment taxes by filing false forms with the IRS, having nominees open bank accounts to conduct business for the corporation and creating fraudulent trusts for the corporation.

I'd Like to Hear From You......

I f you have an IRS issue, or just want to refer a friend, relative or client, I'd love to hear from you.  I can provide a no-obligation confidential consultation to help you solve your IRS problems.

Jeffrey Schneider, EA, CTRS, NTPI Fellow
772-337-1040
jeff@sfstaxacct.com
www.sfstaxproblemsolutions.com

10570 S US Highway 1, Ste. 203
Port St Lucie, FL 34952



These crispy fritters are baked instead of fried and are delicious! Ali bakes them a bit longer than the recipe calls for and serves them with a concoction of mayo, garlic and sriracha .. So good!

Enjoy!!
The IRS Puts the Brakes on "Denson's Fast Tax Services"
A tax preparer from New Orleans, LA, Tiga Bryant, was named in a civil suit filed by the US to bar her from preparing tax returns as they were found to be fraudulent.

In the suit, the government claims Bryant attempted to fraudulently reduce her customer's tax liabilities by claiming bogus deductions, false fuel tax credits and non-existent business expenses. In one instance, she claimed more business expenses than the wages the client earned.

Fraud involving the fuel tax credit was one of the IRS's Dirty Dozen Tax Scams for 2016. The fuel tax is limited to off-highway business use and not generally available to most taxpayers. In one return, Bryant claimed her client used 2,500 gallons of fuel for off-highway business when the customer did not even own a vehicle.

Of the 197 tax returns Bryant prepared that were audited, it was found that 189 returns had false deductions and/or credits that her clients were not entitled to, and understated the tax liability by over $800,000.
Thank You for the Kind Words..

"The tax professionals at SFS came recommended when we needed expertise in our dealings with the IRS. Initially, everything they told us had a sting accompanied with it, but was all for the best.

In telling friends about our experience with SFS I always said Jeff should have been a doctor, his no nonsense approach is refreshing in an industry where ads promise you the world and deliver a questionable product.

The SFS crew has provided the highest quality of tax preparation and mediation with the IRS, on our behalf for 3 years now, with both personal and business taxes. They were adept with our changing needs from other states and we would highly recommend them to anyone, regardless of your tax needs."

Iris And Kevin Lindstadt

Owner of Iceoplex Skates on Thin Ice with the IRS
A tax attorney from Pittsburgh, PA and co-owner of the Iceoplex recreational sports facility, Steven Lynch, was sentenced to 48 months in prison for failing to collect, account for and pay over employment taxes to the IRS.

From 2012 to 2015, Lynch controlled the finances for the business and withheld more than $790,000 from the wages of his employees but failed to turn those funds into the Internal Revenue Service.

According to Principal Deputy Assistant Attorney General, Caroline Ciraolo, "Business owners and operators who choose not to pay over to the United States that they withheld from their employee's wages are stealing from the U.S. Treasury and should plan on facing prosecution and incarceration."
In addition to his prison sentence, Lynch will serve three years supervised release, pay $793,145 in restitution and a $75,000 fine.
What is a John Doe Summons?
Federal law requires U.S. taxpayers to pay income tax on all earnings worldwide. U.S. taxpayers are also required to report to the IRS any foreign financial accounts if the value of those accounts exceeds $10,000 at any time in a calendar year.

U.S. taxpayers seeking to hide their assets in offshore accounts can use the services of companies that open foreign accounts, create false corporations or other entities and serve as nominee officers.

In order to obtain a list of customers who use these companies, the IRS issues a John Doe summons, which allows the IRS to get the names of all taxpayers in a certain group.

One company that received an IRS John Doe summons was Sovereign Management & Legal (SML), a Panamanian company run by Michael Behr of Bozeman, MT. It's alleged that SML advertises several different "packages" which allow taxpayers to hide assets offshore. One of these "packages" includes creating corporations owned by other entities (including fake charitable foundations), which are all held in the name of the nominee officers of SML. SML then opens bank accounts for these entities and provides debit cards in the name of the nominee to the taxpayer. By using these debit cards, the taxpayer can access their funds without revealing their identity.
Thank you! 

This month I would like to thank Larry Jennings  for his referral. Larry will be receiving a special thank you gifte and ntered into our Tax Season Drawing and will be eligible to win the $75.00 restaurant gift card.
Pizza Store Owners Fail to Report a lot of "Dough" to the IRS
Charles and Mary Bangle, owners of a popular pizza restaurant chain, who reside in Ocean City, NJ, both pled guilty to tax evasion. Charles pled guilty to structuring transactions to avoid reporting requirements to his 2010 personal tax returns. His wife, Mary Bangle, pled guilty to knowingly making false statements to IRS special agents.

Charles Bangle admitted in court to failing to report income he deposited in cash in his personal bank account. On his 2010 tax return, he listed his income as $127,955 and omitted additional income of $263,113, thereby avoiding an additional $91,577 in taxes. Bangle also admitted to making cash deposits of in increments of less than $10,000 to prevent the bank reporting the deposits to U.S. Department of Treasury (known as structuring).

In court, Mary Bangle admitted she lied to special agents of the amount of cash she deposited into her personal bank account.

Charles Bangle was sentenced to 15 months in federal prison, three years supervised release and ordered to pay $248,560 in restitution and fined $5,000. Mary Bangle was sentenced to three years probation and fined $3,000.
   Your IRS Questions Answered Here...
Question:  I just received a letter form the IRS informing me they want to audit my 2014 income tax return. I really didn't need this right now. What should I do?
 
Answer:   First, take a deep breath knowing there is expert help available to you. As part of the IRS's audit process they'll ask you dozens of very innocent sounding questions, however many of these can be invasive as well as intrusive.  The answers to which can "seal" your fate with the IRS auditor. But there is a "right way" to answers these questions. The IRS's mission is to determine the accuracy of your tax return and they will leave no stone unturned to accomplish this.  We have found that many taxpayers who decide to handle an IRS audit themselves wind up with a substantial bill owing the IRS thousands of dollars. Auditors are trained to obtain information from you that in a lot of cases is not required under the law. They get away with this because most people fear them and don't know their rights.
 
Our clients generally NEVER meet or speak with the IRS. We handle everything for you so you don't have to take time away from your job or business to deal with all of the IRS's paperwork. Simply forward your audit letter to us and we'll handle the rest.   Don't let them walk all over you. We know the law.  We know your rights. We can help!

We at SFS Tax Problem Solutions are experts in IRS tax problem resolution and help taxpayers with their IRS Problems every day.  There is a solution to EVERY problem. Generally, you'll never have to meet or speak with the IRS once you bring us into the picture. Call us today! 772-337-1040