Tax Preparers Get Busted for Fraudulent Practices
Every tax season is full of stories and tales of people who go to great lengths to avoid paying taxes. In addition there are dozens of reports of unscrupulous tax preparers that get caught trying to cheat the system: either their clients or the IRS, or both.
We want to share a few of those stories with you, which come from Accountingtoday.com. The first tale comes from Latham, NY, where a 52-year-old tax professional has pleaded guilty to false returns. The preparer admitted to preparing 16 returns that contained all kinds of false information, from false deductions for unreimbursed employee expenses to energy efficiency credits. The false returns were submitted between 2008 and 2011. He could face as much as three years in prison and a fine of $100,000.
Elsewhere, the Justice Department has asked a federal judge to permanently bar three Liberty Tax Service franchises in South Carolina after they allegedly prepared false returns in order to give their clients’ refunds a boost. According to the complaint, one franchise filed returns that included a “bogus ‘arts and crafts’ business on one of its client’s return and a bogus ‘hair care’ businesses on another’s.”
Meanwhile, another preparer, in Louisiana, will be spending two years behind bars and another year of supervised release, along with paying a hefty fine of more than $225,000 after he was convicted of filing a false personal income tax return and preparing bogus returns for many of his clients.
These are just a few examples of dishonest tax preparers that are out there. So now that tax season is in full swing, make sure you choose a tax preparer you can trust.
IRS Extension 409A
IRS Extension 409A The IRS has issued Notice 2007-86 which delay the effective date of the Proposed Regs under Section 409A until January 1, 2009 and by generally extending earlier transitional relief. This provides taxpayers additional transitional relief to come into compliance with forthcoming final regs. Options granted before 2009 won’t be considered as violating…
ESOP Valuation Issues
ESOP Valuation Issues Q&A (Employee Stock Ownership Plan) Valuation Services Valuation Process Valuation Experience Sample Report Glossary of Terms ESOPs have become an effective tool in corporate finance and tax planning. Not only do they provide retirement benefits and incentives to employees but an ESOP can provide unique ways to transition company management in tax…
Employee Ownership Update
Employee Ownership The following article appeared in the New York Times on May 21, 2006 and is one of the best articles about employee ownership that I have seen. It illustrates a few great examples of how employee ownership has helped companies achieve extraordinary success. These Workers Act Like Owners (Because They Are) By William…
Family Limited
This FLP Alert is directed at clients and their advisors who have already established Family Limited Partnership irs (“FLP’s”) and those clients who are considering a partnership as part of their estate plan. With all the attacks the IRS has made on FLP’s over the past few years, culminating at the Strangi III decision in…