April 2019
In This Issue

We are grateful to have the opportunity to provide you with this valuable information via our monthly e-newsletter and our unparalleled forensic accounting and fraud investigative services.

The goal of this e-newsletter is to provide you critical, inside information that will help you "follow the money" in business disputes, divorce cases, fraud cases, estate matters, corporate embezzlement and to prevail when defending an IRS criminal case. We will do this by sharing the knowledge we have from our 25+ years of experience as an IRS Special Agent and 16 years as a private investigator / forensic accountant.

We take special care to ensure the information we provide you in "The Beacon" is the latest and most current information available.  In this edition, we talk about the importance of filing timely with the IRS.

We want to write about topics that will assist you in prevailing with fraud, divorce, estate and probate, and IRS criminal cases. Please e-mail us your topics of interest to Thebeacon@sageinvestigations.com
We encourage you to share our e-newsletter with others in your sphere of influence.  
Edmond J. Martin
Principal, Chief Investigator
Certified Fraud Examiner (CFE)
Texas Certified Investigator (TCI)

The Internal Revenue Code requires individual taxpayers file on April 15th of each year to file an extension Form 4868, which allows you to estimate your tax liability for the prior year and make a payment. If you do not file an extension and allow your return to become delinquent, you have created a costly problem for yourself. The act of not filing a return and not paying the tax will cause the IRS to include in your tax debt the penalties of Failure to File and Failure to Pay. Each penalty cannot exceed 25% of the unpaid tax due, which causes huge amounts to be added to your tax liability and upon which interest is paid.
In recent years, we have encountered taxpayers that have not filed in many years - five to eight years. The penalty and interest provisions of the Internal Revenue Code had massive effects on the taxpayer. These people had either bad tax advice, were stubborn, or just wanted to challenge the "800-pound IRS gorilla." Everyone can guess who won. To avoid this costly mistake, all the taxpayer had to do is to file an "incomplete return with the base information available" and follow up with an amended return within 60 days and the penalty would be minimal.

The IRS offers Tax Tips - In 2013 they issued the following eight important points, which we modified for 2018 rules about penalties for filing or paying late.
  1. Under IRC Sec. 6651(a)(1) a failure-to-file penalty may apply if you did not file by the tax filing deadline. A failure-to-pay penalty under Section 6651(a)(2) may apply if you did not pay all of the taxes you owe by the tax filing deadline.

  2. The failure-to-file penalty is generally more than the failure-to-pay penalty. You should file your tax return on time each year, even if you're not able to pay all the taxes you owe by the due date. Also, you can reduce additional interest and penalties by paying as much as you can with your tax return. You should explore other payment options such as getting a loan or making an installment agreement with the IRS to make payments. The IRS will work with you.
  3. The penalty for filing late is normally ...
About Us
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At Sage Investigations we are dedicated to serving our clients nationally, to help them navigate the difficulties of dealing with fraud, divorce, estate and probate, the IRS Criminal Investigation, and other complex (forensic) financial fraud investigations. By narrowing our focus to our primary strength of following the money, we steer our knowledge, efforts, and experience to financial issues. We help our clients propel their cases forward by assisting in the review, acquisition, and organization of financial records, evaluating the elements of their cases, and helping create winning strategies. Through the use of our proprietary advanced financial investigative technology we trace and analyze complex financial data quickly, easily and efficiently, saving our client's time and money.
Sage handles all cases with altruism, professionalism, honesty, integrity, passion and respect. When you hire Sage, you hire a team of professionals with skill and knowledge that helps you have more effective solutions. We are innovative with our DIO cutting edge technology, and perform every investigation in an orderly and organized manner to develop a clear investigative roadmap and deliver a quality work product. The compass that guides us is strong leadership and accountability. Learn more ...
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P.O. Box 160161
Austin, TX 78716
Phone: 512-659-3179
Fax: 512-328-6878
Texas License #A10803


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