Archive for the ‘IRS / Taxes’ Category

Getting Even at a Bankruptcy Auction – Bankruptcy Beat – WSJ

A new kind of payback was on display this week in Ft. Lauderdale, Fla., as many still holding a grudge against Ponzi-scheme operator Scott Rothstein bid for the chance to take home his toys.

A Thursday auction for Rothstein’s luxury vehicles and yachts played host to several attendees who “said they felt betrayed or cheated by Rothstein,” the South Florida Business Journal reported, and considered their offers “a small way to recover something they lost in the disbarred attorney’s $1.2 billion Ponzi scheme.”

A businessman from Fort Lauderdale recounted how Rothstein – a founder of law firm Rothstein Rosenfeldt Adler PA, which is now being liquidated in bankruptcy – failed to follow through with a promise to provide a local anticrime organization with a $100,000 reward. With the betrayal still fresh in his mind, the businessman, Alan Winter, was now turning his attention to a 1967 Corvette convertible, the publication said.

In total, the auction brought in $5.8 million, including the $2.51 million price tag for an 87-foot yacht named “Princess Kimberly” in honor of Rothstein’s wife. One rare car, a 2008 Bugatti Veyron, sold for $858,000, while a 2010 Lamborghini was purchased for $382,000. The latter car was still a steal, according to figures from Car and Buyer, which estimated it cost $457,500 new, according to the South Florida Business Journal.

Rothstein, whose estate is being liquidated in bankruptcy, was arrested last year on charges of using his law firm to run a Ponzi scheme. Since then, Rothstein has pleaded guilty to such felony charges as wire fraud and racketeering. He is slated to be sentenced June 9.

If you have been charged with or are being investigated for Tennessee sales tax evasion, contact attorney Norman D. McKellar today at 865-566-0125.

JohnsonCityPress.com – Local News – Johnson City, TN

A Johnson City man pleaded guilty this week to sales tax evasion for filing false and fraudulent sales tax returns for his business, according to the Tennessee Department of Revenue.

Kevin Lee Hubbs, 48, entered a plea to nine felony counts and three misdemeanor counts of sales tax evasion.

Hubbs owned and operated Mobile Tech “On-Site” Vehicle Maintenance and intentionally failed to report sales tax totalling $13,546.49 from for 2004, officials said.

Hubbs was sentenced to two years of unsupervised probation and must perform 24 days of community service. He has paid the sales tax to the state, a news release said.

The Press Association: 87% lured by tax dodgers’ discount

Most consumers would happily pay in cash for a discount even if told it was for tax evasion, according to a poll.

The survey for MoneySavingExpert.com found 87% of people would knowingly support criminal tax evasion in return for a discount.

Of that group, 22% said they would haggle for an even bigger discount.

The poll asked: “What would you do if a builder/masseuse/cleaner/plumber/market stall holder or anyone else offered you a 15% discount because ‘It’s better in my pocket than in the taxman’s.’?”

Of the 11,285 who responded, 65% said they would take the discount, 22% would haggle and ask for a bigger discount, 10% would refuse it and 3% would report it as tax fraud.

If you are facing criminal tax charges, contact Tennessee tax and criminal defense attorney Norman D. McKellar at 865-566-0125.

Durham woman sentenced for tax evasion :: WRAL.com

Greensboro, N.C. — A Durham woman received a six-month prison sentence Wednesday after pleading guilty to not paying federal taxes on nearly $600,000.

Cheryl Meliones was also fined $4,000 and will be placed on probation for 18 months following her imprisonment. She was sentenced in federal court in Greensboro.

An investigation by the Internal Revenue Service’s Criminal Investigation Division lead to charges against Meliones in October that she didn’t file a federal income tax return in 2004, 2005 and 2006. She pleaded guilty to failing to file a return for $596,100 in 2006.

If you are facing federal criminal tax evasion charges, contact attorney Norman D. McKellar today at 865-566-0125 for a FREE consultation.

U.S. Department of Justice – United States Attorney’s Office, TNWD

Jackson, TN – Isaac H. Brooks, Jr. of Jackson, Tennessee, has been indicted by a grand jury, charged with 29 counts of income tax evasion announced Lawrence J. Laurenzi, United States Attorney for the Western District of Tennessee. Brooks had his initial appearance before U.S. Magistrate Edward G. Bryant today, and he was detained pending his detention hearing set for 1:00 pm on Friday, April 30th, 2010.

According to the indictment, Brooks filed Individual Form 1040 tax returns for 2002 and 2003 that substantially understated his taxable income and tax due and owing to the United States. The indictment alleges that Brooks then failed to file individual income tax returns for 2004 through 2007 with the Internal Revenue Service (IRS) as required by law. During this time Brooks allegedly leased or purchased several new vehicles including two Cadillac Escalades, an Infiniti G35 Coupe, a Mercedes Benz CLS500C, a BMW 745LI, and purchased household furnishings, all in the nominee name of Antioch Missionary Baptist Church. Brooks also concealed his involvement and/or ownership of his business, Temp Owned Temporary Service (TOTS) by having the City of Jackson’s Business Tax Report in his wife’s name. Additionally, the indictment alleges that Brooks provided false and misleading information to an Internal Revenue Service Officer.

The indictment also states that for two quarters in 2003 and for all of 2004 and 2005, Brooks filed false and fraudulent quarterly Form 941, Employer’s Quarterly Federal Tax Return for his business, TOTS. For each of these quarters, Brooks substantially understated the taxable wages paid to employees, federal income tax withholdings, and social security taxes due and owing for each quarter. For all of 2006 and 2007, Brooks failed to file these quarterly employer returns with the IRS as required by law.

Lastly, the indictment alleges that Brooks filed fraudulent Form 940-EZs, Employer’s Annual Federal Unemployment (FUTA) tax returns for TOTS for calendar years 2003 and 2004. The indictment states that Brooks substantially understated the total wages paid to employees for those years, thus understating the FUTA tax due and owing to the United States. Brooks failed to file Forms 940-EZs for 2005 through 2007 with the IRS.

Brooks faces a maximum penalty of 5 years and a fine of $250,000 on each count if convicted.

If you are facing a tax evasion charge, contact criminal defense tax attorney Norman D. McKellar today at 877-4-TAX-SOS for a FREE consultation.

Houma man faces tax evasion charge | DailyComet.com

HOUMA — A Houma man faces a tax evasion charge for reporting he made only $5 in taxable income in 2004 when he actually made hundreds of thousands more, U.S. Attorney Jim Letten’s office said Thursday.

Reginald Caillouet Jr., 61, tried to avoid paying about $43,500 in income taxes by falsifying his 2004 return, according to a news release from Letten’s office. He allegedly made about $117,900 in taxable income that year.

If convicted, Caillouet could receive a maximum of five years in prison, a $100,000 fine and two years of supervised release.

Ladson woman indicted on charges of using fake IRS forms – CHARLESTON, SC NEWS – LIVE 5 WCSC Breaking News, Weather, Sports

COLUMBIA, SC (WCSC) – A Ladson woman was indicted in federal court Wednesday on charges of using a false IRS document.

According to U.S. Attorney William Nettles, Jenene Gourdine, 38, knowingly used a fabicated IRS form that falsely stated that the IRS had released its tax lien on property owned by her spouse when, in fact, the IRS had not released the tax lien.

She used the form in June, 2006.

The maximum penalty that Gourdine could receive is a fine of $250,000 and imprisonment for five years.

If you are concerned about your offshore bank accounts, please contact tax attorney Norman D. McKellar at 865-566-0125 today for a FREE consultation.

US tax probe moves focus to Asia in offshore bank crackdown – Investment International

US authorities are set to investigate thousands of affluent tax evaders using offshore bank accounts, according to legal experts.

It is already looking at potential evasion among customers of UBS in a global high profile case but investigations will not end there, said Kevin Downing, a senior tax attorney with the US Department of Justice.

He told a conference in Singapore that somewhere between 4,000 and 7,000 cases are likely to be examined as it seeks co-operation from banks all over the world.

Some private banking clients are choosing to take cash from Swiss accounts and carry it by hand back to the United States, to avoid an electronic trail, only to be caught by US law enforcement officers and penalised for tax evasion and illegal smuggling of money into the country, Downing said.

‘When they go in and close their accounts, they are picking up brand new $100 bills that are coming in in $100,000 shrink wrapped bundles. Guess what? We can trace that money,’ he said, adding such cash would be forfeited.

His team is currently making its presence felt in a number of Asian locations including Hong Kong, Beijing and Shanghai. It is meeting with officials in finance and tax regulatory organisations and bankers to discuss cross border tax prosecutions.

He said that since the start of the US crackdown on tax evasion, money has moved from the Caribbean to Switzerland and Asia.

Integrity Bank execs, developer indicted – Atlanta Business Chronicle:

Two former executives and a borrower of the failed Integrity Bank of Alpharetta, Ga., were indicted in federal court on fraud charges related to more than $80 million in hotel loans, the U.S. Attorney’s Office in Atlanta said Friday.

The case involves a series of fraudulent loans, much of it allegedly funneled by the borrower, hotel developer Guy Mitchell, 50, of Coral Gables, Fla., to personal accounts to buy such things as a private island in the Bahamas.

The case also includes charges of insider trading by former bank executives Douglas Ballard and Joseph Todd Foster.

Mitchell and Ballard, 40, of Atlanta, are charged with bank fraud, conspiracy and bribery. Ballard is also charged with evasion of reporting requirements and securities fraud. Foster also faces with securities fraud charges.

Although much of our blog focuses on federal tax crimes, the good state of Tennessee will occasionally jump into the tax crimes world.  Last week, Winfield, Tennessee mayor, Kenneth Lee Burchfield, was indicted on 31 counts of sales tax evasion.  For defense of your tax evasion and tax fraud charges, contact Tennessee Tax Attorney Norman D. McKellar today at 865-566-0125.

E. Tenn. mayor indicted on 31 counts of sales tax evasion

SCOTT COUNTY, Tenn. (WVLT) – An East Tennessee mayor surrendered to authorities on Wednesday after being indicted on 31 counts of sales tax evasion.

Kenneth Lee Burchfield, 44 has been the mayor of Winfield since 2002. He also owns Kenny’s Rowboat, a convenience store in Winfield that is located along the Tennessee-Kentucky border.

A Scott County Grand Jury handed down the 31 count indictment against Burchfield on May 4th after examining evidence gathered by the Special Investigations Section of the Tennessee Department of Revenue.
The state claims that Burchfield purposely did not report how much sales tax he collected between February 2004 and December 2006. During that time investigators say he kept $47,173.02.

Mayor Burchfield is known throughout the region for being a diehard University of Tennessee Volunteers fan. In the past he has made headlines for publically betting rival business owners in the Bluegrass State on the outcome of annual games between the Vols and University of Kentucky Wildcats.

He faces up to 62 years in prison and $93,000 in fines if convicted on all 31 counts of tax evasion.