Tax news April 2012

Tax

Florida Tax Preparer Pled Guilty to Wire Fraud and Identity Theft

Ernst Pierre, a Port St. Lucie, Florida, tax preparer, pleaded guilty on April 24, 2012, to wire fraud and aggravated identity theft, the Justice Department and IRS announced. Pierre was charged with a scheme to file false federal income tax returns using stolen identity information.
Tax

Return Preparer Charged ‒ Preparing False Tax Returns for Drug Dealers

Rebecca Renae Powell, a resident of Wasilla, Alaska, has been charged with six counts of preparing false income tax returns for several clients whose primary source of income was from the sale of illegal narcotics.
Tax

Study: Taxpayers Willing to Sacrifice to Reform Social Security

A new study ? "The Effect of Accounting Information on Taxpayers' Acceptance of Tax Reform" ? suggests that if taxpayers had a different understanding of the financial sustainability of Social Security, they might be more willing to make sacrifices to reform the system.
Tax

IRS Alert: New Correspondence Audit Hotline Now Available

If the IRS is going to audit your client, it will most likely conduct a mail audit. In 2011, the IRS conducted 1.2 million mail audits, representing a 124 percent increase from ten years ago. In fact, the IRS conducts more than three out of four audits by mail.
Tax

Former Partner at BDO Seidman LLP Sentenced to Prison for Tax Crimes

Stephen A. Favato, a resident of Point Pleasant Beach, New Jersey, and a former partner in BDO Seidman LLP's Woodbridge, New Jersey, office, was sentenced to eighteen months in prison for tax crimes, the Justice Department and the IRS announced April 16.
A&A

KPMG Survey: New Excise Tax Will Hit Medical Device Companies Hard

Financial executives in the medical device manufacturing industry predict that a new excise tax and the burden of its related compliance costs will have a negative impact on their company bottom lines, according to a survey conducted by KPMG LLP, the audit, tax, and advisory firm.
Tax

Study Finds the Odds Favor IRS in Supreme Court Tax Cases

The odds are stacked against corporations whose disputes with the IRS go all the way to the Supreme Court, according to a new study by Joshua Blank, faculty director of the graduate tax program at NYU law school, and Nancy Staudt, a tax scholar at the University of Southern California, Gould School of Law.
Tax

New Case Spotlights 'Hobby Losses' of Filmmaker

Filmmaker Lee Storey, who produced and directed the documentary "Smile 'Til It Hurts: The Up with People Story," has emerged from a protracted battle with the IRS with a giant smile on her face.
Community News

ASTPS Offers Pro Bono Representation to Returning Combat Veterans

The American Society of Tax Problem Solvers (ASTPS) has launched a program to help returning combat veterans (RCVs) with IRS problems. ASTPS members have volunteered to represent RCVs for no fee as a way of expressing appreciation for their service.
A&A

TIGTA: IRS Can Take Action to Recognize/Investigate Fraud Indicators

By better ensuring that fraud indicators are recognized and properly investigated during field audits of individual tax returns, the IRS could increase revenue by an estimated $20 million a year, according to a report publicly released today by the Treasury Inspector General for Tax Administration (TIGTA).
Practice

Job Outlook for Bachelor's Degree Students Looks Bleak

A weak labor market has left half of college students (age twenty-five or younger) who graduated with a bachelor's degree either jobless or "underemployed" ? a troubling statistic.
Tax

New Survey of Workplace Ethics Shows Surprising Results

Findings from a survey of ethics in the workplace may portend a future downward shift in business ethics. The percentage of companies with a weak ethical culture is on the rise, as is the number of employees who experienced retaliation for blowing the whistle on observed misconduct.
Tax

Pennsylvania Tax Defier Sentenced to More Than Six Years in Prison

Troy Beam of Pennsylvania was sentenced April 10 to 74 months in prison by US District Judge Christopher C. Conner, the Justice Department, and the IRS. On May 4, 2011, Beam was convicted of tax evasion, obstructing and impeding the due administration of the IRS laws, and willful failure to file federal income tax returns.
Tax

Groundbreaking Tax Fraud Lawsuit against Sprint for over $300 Million

On April 19, Attorney General Eric T. Schneiderman filed a lawsuit against Sprint-Nextel for deliberately under-collecting and underpaying millions of dollars in New York state and local sales taxes on flat-rate access charges for wireless calling plans. Also on April 19, Sprint Nextel responded to the allegations.
Tax

DC Tax Return Preparer Indicted for Preparing False Tax Returns

A federal grand jury in the District of Columbia returned an indictment charging Enyinnaya Udo with twenty-five counts of aiding and assisting in the preparation of false income tax returns, the Justice Department and the IRS announced April 6.
Tax

Lionel Richie Sings a Different Tax Tune

Lionel Richie, the legendary singer who rose to fame with the Commodores and then carved out a highly successful solo career, has been slapped with a tax lien of $1.1 million by the IRS for unpaid income taxes attributable to the 2010 tax year.
Tax

Woman Used Stolen Identities and Debit Cards to Obtain Tax Refunds

On April 17, 2012, the Justice Department, US Attorney George L. Beck Jr., and the IRS announced that federal grand jury in Montgomery returned an indictment on March 28, 2012, charging Antoinette Djonret for using stolen identities to file false tax returns.
Tax

Skier Lindsey Vonn's Tax Problems Snowball

Renowned skier Lindsey Vonn wasn't able to clear one hurdle that all taxpayers face. According to a news report, Vonn owes more than $1.7 million in taxes from 2010, a staggering total.
Tax

NH and MA Residents Convicted for Promoting/Using Tax Defier Schemes

A federal jury in Worcester, MA, convicted William Scott Dion and Catherine Floyd, both of Sanbornville, NH, and Charles Adams of Norwood, MA, for conspiracies to defraud the United States through the promotion and use of multiple tax fraud schemes, the Justice Department and the IRS announced on April 2.
Tax

Buffett Rule Fails in Senate

By blocking the so-called "Buffett Rule" with its April 16 vote, the Senate was able to suppress the Democratic push to level the income tax playing field between the 1 percent of wealthiest Americans and the remaining 99 percent of taxpayers.

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