3 03, 2015

Chiropractor Adjusts Tax Return, Gets 15 Months

By Allan|2020-02-12T14:20:16-05:00March 3rd, 2015|Income, State Tax, Tax Crimes, tax evasion, Tax fraud|0 Comments

Working on more than spines, a Pennsylvania chiropractor attempted a sort of tax decompression by manipulating and adjusting her tax return to file a 2006 federal income tax return that falsely claimed her taxable income was $89,754, when, in fact, she had taxable income of $1,151,928, and owed at least $363,566 in taxes for that year.

Unhappily for the chiropractor, Maria Giacalone-Hewson, 43, of Canadensis, Penn., who operated Canadensis Healthcare Inc. was sentenced to 15 months in prison for aiding the preparation and filing of a false federal income tax return and false statements relating to healthcare matters.

At her sentencing, Giacalone-Hewson was also ordered to pay $113,821 in taxes that she owed forthe years 2007 through 2010.

In addition to the prison term, Judge Mariani ordered that Giacalone-Hewson be supervised by a probation officer for three years following her release from prison.

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10 01, 2015

Celebrity Lettuce: Terrence Howard’s Tax Strife Used as Weapon to Foil Ex-Wife

By Allan|2020-02-12T14:20:17-05:00January 10th, 2015|Income|0 Comments

Academy Award-nominated actor Terrence Howard owes the Internal Revenue Service $1.2 million and the state of California $156,000 in back taxes, according to papers he filed in court.

According to reporting by TMZ, Howard argues that these substantial federal and state tax debts make him able to afford only to pay his ex-wife, Michelle Ghent, the $2,000 he’s paid her, not the nearly half million dollars in spousal support and legal fees she’s demanding.

Time will tell, as the litigation process grinds forward, whether Howard’s argument will be successful.

3 01, 2015

Simple Math: $66 is Not $198,713, and so, a Plea of Tax Evasion is Pled

By Allan|2020-02-12T14:20:17-05:00January 3rd, 2015|Tax Crimes, tax evasion, understatement of income|0 Comments

The pluses and minuses of understating one’s income on a tax return include, on the plus side, one’s tax bill will be smaller. But, on the minus side, such an understatement is a crime with serious consequences.

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30 12, 2014

The Audacity of Tax Fraud: Promoter Sentenced to Nine Years

By Allan|2020-02-12T14:20:17-05:00December 30th, 2014|Tax fraud|1 Comment

One enterprising criminal tax fraud promoter has put a new twist on the concept of “robbing Peter to pay Paul,” in a scheme which might be described as robbing Uncle Sam to pay citizens of the Great White North: persuading Canadian citizens to file fake United States tax forms to collect real refunds from these fraudulent claims.

A Canadian tax fraud promoter who was extradited from Canada and convicted at trial was sentenced to nine years in prison for conspiracy and three counts of wire fraud. The sentencing judge cited the “audacious nature” of his scheme.

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26 12, 2014

Withholding But Never Letting Go Gets Businessman Sentenced to 15 Months

By Allan|2020-02-12T14:20:17-05:00December 26th, 2014|100% Penalty, Employment Tax, Payroll Tax, Tax Crimes, Withholding Tax|0 Comments

All too often business owners find all that money they have withheld from employees’ paychecks much too tempting. Instead of paying it to the IRS, as they are obligated, they keep it, and use it for other things, like the electric bill, or a supplier whose supplies are necessary for the business to stay in business. Other people’s money used for things for which it was not supposed to be used. This can lead to problems. For example:

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24 12, 2014

The Sin of Snipes, Replayed: Mayor Pleads Guilty to Failing to File Tax Return

By Allan|2020-02-12T14:20:17-05:00December 24th, 2014|failure to file tax return, Tax, Tax Crimes, Tax fraud|0 Comments

The mayor of Mount Vernon, N.Y., just north of Manhattan, has pleaded guilty to failing to file corporate and personal income tax returns. Failing to file tax returns is the same crime for which Hollywood film star Wesley Snipes famously was convicted and for which he spent nearly three years in federal prison.

Mayor Ernest D. Davis, 76, faces up to two years in prison as a result of his plea agreement.

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21 12, 2014

Paper Faker Nabbed: $1.8 Million Phony Tax Refunds Grabbed

By Allan|2020-02-12T14:20:17-05:00December 21st, 2014|Identity Theft, Tax Crimes, Tax fraud, Tax Refund|0 Comments

For all the fear and anxiety people suffer in the run up to April 15^th and the filing of tax returns, lots of taxpayers look forward to the refund to which they are entitled from the IRS as reported in their tax return. But, imagine you were not entitled to that so desirable refund, but a refund was coming to you anyway?

It would be like Christmas in April. Imagine that (indeed, rumor has it that John Lennon’s hit song, Imagine, left out the line “Imagine all the tax refunds….”)

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23 08, 2014

Taxes v. Instincts: The Difference Between Humans and Other Animals

By Allan|2020-02-12T14:20:17-05:00August 23rd, 2014|Humor, Tax, Tax Theory|0 Comments

Quotable:

“Man is not like other animals in the ways that are really significant: animals have instincts, we have taxes.”

— Erving Goffman

6 04, 2013

Letter from the Editor (Post-Mayan Apocalypse Fizzle): A New Life for the Newsletter, Life, Law & Taxes

By Allan|2020-02-12T14:20:17-05:00April 6th, 2013|IRS News, Tax, Tax Crimes, Tax Penalties, Tax Policy, Tax Problem Solving|0 Comments

(From the vault: A slightly different version of this post was published in the paper newsletter, sent to subscribers through the regular U.S. mail, in January 2013, on the occasion of the paper newsletter being revived to monthly publication, after a hiatus.)

It has been a while since the last edition of the through-the-regular-snail-mail Life, Law and Taxes, was completed and mailed out to you.

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31 03, 2013

NY Court of Appeals Swats Amazon.com and Overstock.com

By Allan|2020-02-12T14:20:17-05:00March 31st, 2013|Constitutionality, Internet Tax, Sales Tax, State Tax|0 Comments

Affirming the Appellate Division of New York State Supreme Court, the New York Court of Appeals (the state’s highest court) rejected Amazon.com and Overstock.com’s challenge to the New York State tax law allowing New York to require the internet retail giants to collect and pay sales tax from sales made through affiliates posting links on their websites. Amazon and Overstock argued the statute was unconstitutional on its face. Chief Judge Lippman wrote for the majority. Judge Smith dissented, with an opinion..

Amazon.com LLC v New York State Department of Taxation and Finance

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Quotable: