IRS

Practice

BDO Accepts Deferred Prosecution Agreement

BDO USA LLP (BDO) the seventh largest US accounting firm, agreed on June 12 to pay a civil penalty of $34.4 million to the IRS and forfeit $15.6 million to the US government as part of a deferred prosecution agreement.
Tax

Give Your Regards to the 'Cohan Rule'

The iconic showman George Cohan's most enduring legacy may be traced back to a landmark US Tax Court decision permitting him to deduct business expenses, even though he didn't have all the receipts needed to back up his claims.
Tax

IRS Posts Draft Revised Withholding Forms Conforming to FATCA

In response to the new requirements imposed by the Foreign Account Taxpayer Compliance Act (FATCA), the IRS has prepared two new withholding certificates.
Tax

Business Owner Pleads Guilty to Excise Tax Crimes and Fraud

Jason W. Leas, a Minnesota resident and cofounder of Best Used Trucks of Minnesota Inc., is facing a potential maximum penalty of five years in prison for excise tax crimes and fraud.
Tax

IRS Throws Curve at Tony Gwynn's Ownership Bid

Baseball Hall of Famer Tony Gwynn is seeking to acquire an ownership interest in his former team, the San Diego Padres. But there's a potential problem - he reportedly owes more than $400,000 in back taxes.
Tax

Tax Preparer Caused $235,000 in Tax Loss to IRS

New York tax preparer pleaded guilty to one count of aiding and assisting in the preparation and presentation of a false and fraudulent return.
Tax

Self-Proclaimed 'Governor' Gets 10 Years in Prison

Monty and Patricia Ervin were sentenced to federal prison for tax evasion and for conspiring to defraud the United States.
Tax

Car Dealership Owner and CFO Plead Guilty to Tax Crimes

Charles Alan Pflueger, Randall Kurata, and Julie Kam plead guilty to filing false federal income tax returns.
Tax

Former Pennsylvania Businessman Convicted of Filing False Returns

Jonathon Felix, formerly of Villanova, Pennsylvania, was found guilty by a federal jury of willfully signing and filing false income tax returns, the Justice Department and the IRS announced May 22.
Tax

Ohio Insurance Salesman Found Guilty of Tax Charges

On May 21, a jury convicted William A. Herder of Ohio on federal tax charges, the Justice Department and IRS announced. Herder was charged with corruptly endeavoring to impair and impede the due administration of IRS laws, tax evasion, and five counts of failure to file tax returns. He was convicted of all counts.
A&A

Summer Rental Season Kicks Off - Extra Tax Points for Owners

According to a new survey by Deloitte, more Americans will be traveling this upcoming Memorial Day holiday than they did last year. This could be welcome news to clients who own rental properties as the traditional vacation season kicks into high gear. But some dark clouds still loom on the horizon . . .
Tax

IRS Issues an Apology to Dionne Warwick after a Tax Blunder in 2009

The IRS issued a written apology to Dionne Warwick and has cut more than $1.2 million of its original sum of back taxes that Warwick owes stemming from money she earned back in the 1990s.
Tax

Nine Alabama Family Members Indicted for Identity Theft and Tax Fraud

Barbara Murry, Douglas Murry, Douglas Murry III, Yolanda Moses, Lee Moses, Veronica Temple, Jeffrey Temple, Almetta Johnson, and Courtney Johnson were charged in an indictment by a federal grand jury in the Middle District of Alabama on a variety of counts stemming from an identity theft and tax fraud scheme.
Tax

Tax Return Preparer Headed to Jail for Close to Eight Years

Margaret Kirksey, a resident of Montgomery, Alabama, was sentenced May 8 in the Middle District of Alabama to eighty-one months in federal prison for filing false tax returns using stolen identities, the Justice Department and the IRS announced.
Tax

Leaders of Multimillion Dollar Fraud Ring Get 25 Years in Prison

Veronica Dale and Alchico Grant, who jointly ran a stolen identity refund fraud ring that attempted to defraud the United States of millions of dollars over several years, were sentenced to federal prison May 8, 2012, the Justice Department and the IRS announced.
A&A

IRS Cannot Extend Three-Year Limitation Due to Overstatement of Basis

In a recent decision that considers the authority of the IRS to issue retroactive regulations, the Supreme Court ruled in United States v. Home Concrete that the IRS may not apply an extended six-year limitations period in certain tax shelter cases.
Tax

Virginia Man Sentenced to Thirty-Six Months in Prison for Tax Evasion

Richard Jaensch, fifty-four, of Annandale, Virginia, was sentenced April 27, 2012, to thirty-six months in prison by US District Judge Gerald Bruce Lee, the Justice Department, and the IRS.
Tax

New York Tax Preparer Sentenced for Tax Fraud

New York Tax Preparer Sentenced for Tax Fraud Howard Levine, owner of a Dix Hill, New York, tax preparation business, was sentenced to thirty-seven months in prison for tax crimes, the Justice Department and IRS announced April 26, 2012. Levine was also ordered to pay $320,998 in restitution to the IRS.
Tax

IRS Backlog Has Stalled Responses to Offers in Compromise Requests

While the IRS has been successful in promoting a program that allows taxpayers to settle their tax bills for less than the full amount, the large number of applications and the shortage of IRS staff has created a backlog.
Tax

Massachusetts Man in Prison for Filing False Tax Returns

Kevin P. Mahoney of Massachusetts was sentenced April 24 to sixty months in prison following trial convictions on corruptly endeavoring to obstruct the administration of the Internal Revenue laws, filing false tax returns with the IRS, and criminal contempt of court, the Justice Department and the IRS announced.

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