Tax Resolutions Time Sept 2018

Creator of “Fitwall” Can’t Use His Product to Scale the Fence in Prison

Douglas Brendle, of Cheyenne, WY, pled guilty in federal court on two counts of willfully failing to file his income tax returns and one count of making a fraudulent application for health care benefits.

Brendle was the owner and operator of Brendle Climbing Systems, LLC which sold the “Fitwall” exercise equipment he created. In January 2013, Brendle sold the rights to Fitwall to investors and received $1.5 million in payments during 2013-2014. During that time, Brendle failed to file individual income tax returns or pay income tax, for a loss to the IRS of $404,501.

Additionally, in December 2013, Brendle filed a false application for Wyoming Medicaid claiming he made no income. Claims filed with the Medicaid office during 2013-2014 totaled over $20,000.

Sentencing will be on September 24, 2018 where he faces a statutory maximum sentence of three years in prison, restitution, monetary penalties and a period of supervised release.

Couple Finds the Purrrfect Tax Deduction

A couple operating a family business known as Columbia North East Used Parts, a junkyard, deducted the cost of cat food for a bunch of stray cats as an ordinary and necessary business expense. The junkyard would feed the cats to control the rats and snakes and other rodent issues.

The IRS disallowed the deduction, but it was taken to tax court and the court agreed with the taxpayers, stating that it a necessary expense, defined as appropriate and helpful and allowed the cost to be deductible.

The IRS Will End Offshore Voluntary Disclosure Program This Month

Miss Out and You Could Face Jail Time!

The Offshore Voluntary Disclosure Program, which has been in effect since March, 2009, will close September 28th. For those taxpayers who have unreported offshore accounts and assets, the programs offers a chance to pay substantially less in back taxes, interest and penalties and more importantly, to avoid criminal prosecution.

The benefit of the program allows taxpayers who failed to file a Report of Foreign Bank and Financial Accounts, or FBAR, to amend their tax returns only going back 8 years and pay the tax, interest and reduced penalties ranging from 20%-27.5%, as opposed to 50% and going back 15 years if the taxpayer does not go through the program and is caught failing to file an FBAR. The biggest benefit is that they will also not face jail time, which could be up to 5 years imprisonment per violation and a felony conviction on their record.

In the last 9 years, more than 56,000 taxpayers have entered the program and paid a total of $11.1 billion in back taxes.

Presidential Tax Facts

• Our modern day-federal income tax system was created by the Revenue Act of 1913, which was signed into law by President Woodrow Wilson on October 3, 1913.
• Social Security numbers were first issued by the Social Security
• Administration in 1935. The numbers were created to help administer Franklin Roosevelt’s New Deal Social Security Program, officially called the Social Security Act.
• President Ronald Reagan paid tax in 1981 at an effective rate of 40%, the highest paid by any president.
• President Richard Nixon’s infamous “I am not a crook” comment wasn’t directed at Watergate; he was referring to allegations that he had not paid his taxes.

Source: Forbes

Thank you!

Kevin Tacher aka “The Title King”

Thanks to YOU, the word is spreading. As a result of being a guest on your “Title Tuesday” show, I have received many calls from real estate investors who learned via “Title Tuesdays” that there are better ways to structure their real estate businesses and save thousands in taxes! For this, Thank you!

I little bit about my friend Kevin Tacher: Also known as “The Title King” – is the Founder and Chief Executive Officer of Independence Title Inc., a Fort Lauderdale, Florida based title insurance company. Kevin is an amazon.com best-selling author and national real estate speaker. As seen on NBC as well as in person, Kevin has shared the stage with some of the country’s best real estate and motivational speakers.

There is no one better in the industry I know when it comes investor friendly closings, double closings, and land trusts. Call him to handle your next closing at 954-335-9305 or visit www.title rate.com. You will be glad you did!

Virginia Couple Tries to Outsmart the IRS and Gets Caught

Barry and Joan Edwards, from Concord, VA, who were convicted on one count of filing a fraudulent tax return, and one count of conspiring to structure cash transactions, were sentenced to prison time.

Joanne Edwards was previously sentenced in May 2018, and received a sentence of 18 months in prison and 3 years supervised release. Barry Edwards was sentenced to 36 months in prison and ordered to pay $7,929 in restitution to the IRS for unpaid taxes.

It was shown in court that the Edwards created two false religious missions in 2006, which they used as nominees to receive income from nutritional supplement sales. The earnings were deposited into bank accounts held in the nominee’s name. The couple withdrew more than $475,000 in increments of less than $10,000 to evade bank-reporting requirements. The Edwards used the funds to pay personal expenses such as car payments, tuition and paid cash for a five-acre farm. They also filed fraudulent tax returns from 2013 to 2015 in which they did not fully report their income.

Are You My Next Client of the Month?

Every month I choose a very special Client of the Month. It’s my way of acknowledging good friends and saying “thanks!” to those who support me and my business with referrals, word of mouth and repeat business.

This month’s Client of the Month is Jose Perez is a real estate investor whose previous accountant reported the depreciation on his properties incorrectly. We were able to correct the depreciation via an “Application for Change in Accounting Method” saving him thousands because of catch-up depreciation.

You might be my next Client of the Month too! Watch for your name here in an upcoming month.

The IRS Breaks Up Phone Scam Ring That Stole Hundreds of Millions of Dollars

After years of investigative work by the Justice Department and other governmental agencies, 21 individuals were sentenced in July, 2018 for defrauding over 15,000 victims from 2012 to 2016 in an elaborate phone scam operation. Indictments were also issued to 32 conspirators located in India.

The scam worked like this: A person posing as an IRS or immigration official would phone the victim through call centers in India and would threaten them with arrest, deportation or other penalties if the victims did not pay their “debts” immediately with prepaid cards or wire transfers. The call centers would then turn the information over to a network of “runners” based in the US who used the cards to purchase money orders that were then deposited to a bank account.

Examples of victims include an 85- year old woman in San Diego paid $12.300 to people claiming to be IRS employees who threatened her with arrest for tax violations, and a New Hampshire woman was told to pay the IRS $3,980 in debit cards as the caller ID showed up as “U.S. Government”.

The longest prison sentences include three men; Miteshkumar Patel of IL, who received a sentence of 20 years in prison, Hardik Patel also of IL, was given 15 years and Sunny Joshi of TX was sentenced to 12 years in prison. 22 of the defendants were also ordered to pay the victims restitution of $8.9 million and judgements of over $72 .9 million.

The defendants from India have not been arraigned yet.

Enter Our Trivia Contest for a Chance to Win a $250 Transferrable Gift Certificate!

Take the Trivia Challenge to win!

Each month, I’ll give you a new trivia question. The first THREE people who call my office with the correct answer win a free $250 reduction on any IRS service I provide. Your prize is also transferrable, so use it for yourself, or give it to a family member or friend. Take your best guess and call me at 954-888-6941

This month’s question is: Tenochtitlan, founded in 1325, is now known as what city?

• a) Oaxaca
• b) Veracruz
• c) Mexico City
• d) Guanajuato

Call today at 954-888-6941

Your IRS Questions Answered Here…

Question: I owe back taxes and am not sure how to resolve this issue and I’m panicking. What should I do?

Answer: If you owe back taxes to the IRS, some amount of panic is understandable. After all, the Internal Revenue Service has the power of the federal government in its corner, something no other debt collector can claim. They are considered the most brutal collection agency on the planet. It is easy to freeze up and just do nothing when you owe back taxes to the IRS, but hiding from, or doing nothing about your tax debt will not make it go away. In fact, ignoring the taxes you owe will only make the situation worse, since interest and penalties can really add up. You also risk having your paycheck garnished (the IRS does need a court order to do this) or your bank account levied. The IRS can also file a Notice of Federal Tax Lien making it all but impossible to obtain financing for a car or home. So instead of panicking about your tax debt and hoping the problem will go away, you need to take some proactive steps. Now is not the time to panic and hide – now is the time to start taking action. Some of these steps you can do on your own if you’d like, while others will likely require the intervention of an experienced tax resolution expert. There are some proactive steps you can take to get a handle on your tax debt.

We at Advanced Tax advisors 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! 954-888-6941 for a FREE confidential consultation. Call us at 954-888-6941.

Tax Quote of the Month

Life: Coming into the world with nothing, leaving with nothing, and in between, giving everything to the IRS.

-Anonymous

Thank you for the Kind Words…

Jose and his team are truly next level tax professionals. I could tell Jose approached my tax history/circumstance as if it were his own and added his gift of creativity which allowed me to feel confidence in a solid plan going forward. Jose is the definition of a genuine professional and his commitment to always researching and improving his services is what a client in need, wants to see.

Ross Medlin

I’d Like to Hear From You!

If you have an IRS issue, or just want to refer a friend, relative or client, we’d love to hear from you. We can provide a no-obligation confidential consultation to help you solve you IRS problems.

Advanced Tax Advisors
954-888-6941

jose.ramirez@advancedtaxadvisors.net

www.advancedtaxadvisors.net

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