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Tax Resolution Times


August 7, 2020

Protecting Your Income and Assets since 1991

Patrick T. Sheehan, Esq.
Former IRS Attorney
President of IRS Trouble Solvers 
®

In this issue:
Thank You For Your Kind Words
What The Puck Was She Thinking?
Trivia
Ruby's In The Red!
Director of Mis-Information
Not Such a Minor Offense
Did You Know?
Pretend Millionaire Gets Real Refund and Real Jail Time
IRS Compliance and Audits
I'd Like To Hear From You


Download "How to Permanently Solve Your IRS Problem" to see how we have helped hundreds of businesses and individuals permanently solve their IRS issues, and how we can help you!


Thank You For Your Kind Words!


We are grateful for our clients who put their trust in us to solve their tax matters. Today we are grateful for our client Mike S. for his kind words.

"IRS Trouble Solvers and Attorney Teresa Wittmer are amazing! They have easily and strategically solved my troubles with the IRS. Teresa is easy to work with and quickly understood how to attack my situation using the law and the IRS programs to my benefit. After years of looking over my shoulder, I am glad I found a company to represent me and my small business. IRS Trouble Solvers are highly recommended!"

 

What the Puck Was She Thinking?

 
Jennifer Durham, an employee of the Rapid City Rush, a professional hockey team in South Dakota, pled guilty to wire fraud and tax evasion for embezzling $700,000.00 from the organization.
 
While employed as the team’s office manager between 2010 and 2019, Durham falsified entries into accounting records to make it appear that the money she was stealing was spent on legitimate business expenses.
 
Durham paid herself $87,000.00 in mileage reimbursement and sales commissions, transferred nearly $285,000.00 from the team’s bank account to pay her American Express bill and transferred another $181,000.00 to her personal bank account. Durham also admitted to taking $214,971.00 in cash receipts to use for personal expenses and made payments totaling $7,712.00 to cover her family’s cell phone bill. She did not report the additional income to the IRS, causing a tax loss of $186,277.00 to the federal government.
 
The investigation began when new team owners discovered, “inconsistencies and irregularities with regard to some bookkeeping handled by a single former employee.”
 
As part of the plea agreement, Durham must pay restitution to the team totaling $700,000.00 and the IRS $186,277.00. She faces up to 45 years in prison.

Trivia


Discovery Channel’s Shark Week airs its 20th season this month. The illegal shark fin trade includes fins from approximately how many sharks each year?

a) 10 million
b) 73 million
c) 500,000
d) 1 million

Answer:
uoᴉllᴉɯ Ɛㄥ (q


Director of Mis-Information

 
Stephen Russo of Pennsylvania pled guilty to filing false tax returns and wire fraud after embezzling $2.79 million from a former employer. Russo was the company’s Director of Information Technology from 2013 to 2018 and had access to his employer’s credit cards and lines of credit, which he used to make unauthorized payments to companies he owned or controlled. He used company funds to purchase items for personal use that he sold, and had checks issued to companies he owned.
 
In 2017, Russo reported his taxable income as $18,579.00 when in reality it was nearly $1 million!  He faces up to 23 years in prison as well as restitution, fines, supervised release and special assessments.

Ruby’s in the Red

 
Illinois resident Ruby Toosevich pled guilty to bank fraud for defrauding the medical practice where she worked by using the company’s bank account to pay her personal expenses. Toosevich created fake invoices, disguised as legitimate business expenses, in order to get checks from her employer. She used the checks to pay, or attempt to pay, for her federal taxes, a mortgage, home repairs and remodeling, private school tuition, jewelry, a luxury car lease, and other expenses.
 
In a 12-month period she caused the company losses of more than $300,000.00. She has been ordered to pay $329,986.54 in restitution and was sentenced to 27 months in prison.

 

Not Such A Minor Offense 


New Yorker Mark Wolanyk pled guilty to tax evasion for a scheme that included his minor son. In 2010, Wolanyk opened a bank account in his son's name, and listed himself as custodian of the account. During the next 3 years, he deposited more than $250,000.00 into the account with the majority of the funds coming from his business. During roughly that same time period, he withdrew an almost identical amount.

In 2011, while the IRS was attempting to collect taxes owed by Wolanyk, he submitted a Collection Information Statement for Wage Earner and Self-Employed individuals and did not list the account held in his son’s name.
  
Wolanyk filed a false tax return in 2014 claiming a loss in income.  Later that year, he amended his return and claimed $77,477.00 in gross income and $56,491.00 in total income. Neither return reported $60,000.00 he had deposited in his son’s account from a real estate transaction that same year.

Wolanyk was sentenced to 12 months of home confinement, three years of supervised release and ordered to pay $243,387.00 in restitution to the IRS.

 

Did You Know?


Beatles guitarist George Harrison wrote the song Taxman in 1966 when the band's earnings put them in a 95% tax bracket in the United Kingdom. This left the group with a nickel for every dollar they earned.

Pretend Millionaire Gets Real Refund and Real Jail Time

 
Mark Goolsby pled guilty in Florida to filing a false tax return.
 
For the 2014 tax year Goolsby falsely claimed that he had earned over a million dollars in 1099-MISC income and had paid more than $800,000.00 in federal withholding taxes. The IRS processed the return and issued Goolsby a refund check for over $400,000.00.
 
Not long after sending the check the IRS realized their mistake and began collection proceedings to get the money back. Goolsby refused to return the money and took great lengths to hide the funds from the IRS. He opened multiple bank accounts, purchased a car in someone else’s name, withdrew large amounts of cash and continued to live a lavish lifestyle.
 
Goolsby was sentenced to 24 months in prison and ordered to pay $420,288.00 in restitution to the IRS.

 

IRS Compliance and Audits


IRS examinations (audits) of most types of tax returns, information reporting and verification, math error notices, and criminal investigations are critical tools for determining if income, expenses, and credits are being accurately reported and to identify and resolve taxpayer errors and identify fraud. These tools ensure that IRS has a presence across all income and asset levels of taxpayers. While the IRS accepts most returns as filed, some are selected for examination using various methods, including random sampling and computerized screening. The below graph shows a decline in number of returns examined over the past 4 years. 
                                                   

But fear not, this trend isn't going to continue. In a recent keynote at the American Institute of CPA's Engage Conference, Commissioner Rettig said "Taxpayers who are trying to do it right will have my support" he promised. "Those who wake up with an idea of a creative way not to pay tax -- I'm paying attention to that. We will have a much greater presence on enforcement than before."
 

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 to solve your IRS problems.

Read about IRS cases I’ve solved on my website: www.IRSTroubleSolvers.com

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2020 Patrick T. Sheehan & Associates, d/b/a IRS Trouble Solvers®
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