May 2017

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

Inside this edition:
  • Chiropractor Adjusts His Income to Zero
  • Interesting Facts About the IRS
  • The IRS Throws a Cog in the Wheel of a Machine Parts Owner
  • New W-2 Phishing Scam Targets School, Restaurant and Hospitals
  • IRS Question of the Month
  • Monthly Recipe - Pad Thai
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   Interesting Facts About the IRS
  • When the IRS tax form 1040 was first introduced in 1914, it had only 3 pages including instructions. Today, it has 101 pages of instructions. 
  • The IRS requires you to declare all sources of illegal income (i.e. embezzlement)-they can't prosecute you for the activity, but they can prosecute you if you don't report the income.  
  • In 2014, 35% of all calls to the IRS went unanswered by the IRS customer service division. 
  • The IRS has instructions for employees on how to collect taxes after a nuclear war.  
  • The IRS had to use a special computer to process Bill Gates' taxes because "their normal computers can't deal with those numbers."  
  • The goodie "swag" bags given to guests at the Academy Awards are so expensive the IRS requires the guests to declare them as taxable income.  
  • The IRS website has over 1,977 different forms and publications, and the tax code is approximately 3.7 million words in length.  
  • The IRS can audit you up to 3 years after your taxes were filed and up to 6 years if you underreported your income by at least 25%. If you are suspected of fraud the limit is indefinite.
New W-2 Phishing Scam Targets Schools, Restaurants and Hospitals

The IRS issued an alert in February 2017 that a W-2 phishing scam which used to be only in the corporate world has now evolved to other sectors, including schools, tribal casinos, chain restaurants, temporary staffing agencies and healthcare organizations.

The scam works like this: Cybercriminals use various techniques to disguise an email to make it appear as it is from an executive in the organization. The email is sent to an employee in the payroll or human resources department, requesting a list of all employees and their W-2 forms.

In some cases, the cybercriminal follows up with another executive email to the payroll department or comptroller and asks that a wire transfer to be made to a certain account.

IRS commissioner John Koskinen says, "This is one of the most dangerous email phishing scams we've seen in a long time."
   Did You Receive a Notice From the IRS?
Read this  Free Report - 7 Common Tax Problems and Resolution Strategies and take the first step in taking control of your IRS problem.
The IRS Throws a Cog in the Wheel of a Machine Parts Business Owner
Larry Lester Larson of Tucson, AZ was sentenced to one month
of prison and fined $15,000 for his conviction of tax evasion. Prior to his sentencing, Larson made full restitution to the IRS in the amount of $322,936.23. 

Larson was the owner of State Industrial Supply Corporation, which distributes machine parts. During the tax years 2006 and 2009, Larson paid and claimed personal expenses as business expenses on his Federal corporate income tax returns. 

The personal expenses falsely claimed as business expenses included elective surgery, dental surgery, garage floor coating, a car lift, pool service and utilities for his personal residence, the purchase of jewelry, and an ATV, remodeling expenses for his son's personal residence, payments for portions of a family member's wedding expense, a personal loan that was paid back but falsely claimed as bad debt and a Hawaiian vacation.
Chiropractor Adjusts His Income to Zero
Maryland chiropractor, Dr. Warren Gregory Belcher, was indicted on one count of corruptly endeavoring to impede the IRS and six counts of filing false tax returns.

Dr. Belcher operated a chiropractic business for nearly 20 years. He received income for chiropractic services from insurance companies, patients, and other third parties. For the tax years 2009 through 2015, it's alleged that Belcher filed false individual income tax return where he failed to report he owned a chiropractic business and reported he earned $0 in business income.

In addition, it's alleged that Belcher threatened insurance companies and other third parties that if they filed a 1099-MISC, they could be subject to civil and criminal penalties for reporting his income to the IRS. Belcher even threatened his accountant in hopes to prevent him from reporting his income to the IRS. Belcher also submitted approximately 68 fraudulent 1099-MISC forms on which he claimed that the companies who reported his income to the IRS for those years paid him $0 in income.

If convicted, Belcher could face a statutory maximum sentence of three years on each count in the indictment, as well as supervised release, restitution, and penalties.
Thank You for the Kind Words...

If you want your taxes done right first time and without any worries.  Well, you came to the right place.  Jeff has prepared my Tax Return for over 10 years.

Tim P. - Wellington
A Shout Out to....

This month I would like to thank Enrolled Agent Merry Brodie, EA  for her referral. Merry will receive a special thank you gift.
   Your IRS Questions Answered Here...
Question: I have a huge tax amount owing, the IRS is harassing me and I need help.  I got a quote from another company at a much lower price.  Why should I go with you?  

Answer:  If someone quoted you a much lower fee, think about this: do you think an experienced tax resolution CPA, EA or attorney worth their "salt" would work for peanuts? Especially given the fact that IRS Representation is a highly valued skill set. You usually get what you pay for in this world we live in today. This is your financial life and the stakes are very high. If you needed heart surgery, would you shop around for the least expensive surgeon or would you get the very best you can find? The same holds true for dealing with the Internal Revenue Service. Having IRS problems can ruin all aspects of your life, your marriage, relationships with your children and family members, your employment, ability to buy a house, a car, money for retirement or even have a bank account. You want the best possible person for the job, not the cheapest. 

Your IRS debt doubles every 6-8 years due to the daily compounding effect of interest and penalties and the IRS has at least 10 years to collect from you to so hand this off to the lowest bidder in town is probably not a wise decision. You'll have peace of mind and sleep better at night knowing that we're working hard on your case to get you the lowest possible settlement, allowed by law, with the IRS!

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
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

10570 S US Highway 1, Ste. 203
Port St Lucie, FL 34952
This Month's Recipe
Thai food is one of our favorites. Unfortunately, it isn't low carb. However, everyone has to cheat on their diet once in a while.. and when I do, it's Pad Thai that I want for dinner. Try our recipe...