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Tax Resolution Time


March 24, 2020

Protecting YOUR Income and Assets since 1991

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

 Did you know?


U.S. car buyers pay sales tax on a new car, but  it is nothing compared to what Danish car buyers pay. Depending upon the price of the car, the registration tax has been as high as 150% of the sale price.
 

Trivia:

How much dye does it take to turn the Chicago River Green for St. Patrick's Day?
a) 40 tons   b) 100 tons
c) 1000 tons  d) 75 tons

Answer: a) 40 tons

Covid 19 and the IRS - How this virus will impact your taxes


The IRS has granted a 90-day extension of time to file and make your tax payment for 2019, moving the deadline for both to July 15, 2020. This applies for individuals and  non-corporate taxpayers with payments up to $1,000,000.00, including self-employment tax. For businesses, this applies to payments up to $10,000,000.00.  This 90-day extension period will be interest and penalty free. 

As well, the IRS is restricting face-to-face services at the roughly 325 still-open taxpayer-assistance offices, limiting their activities to processing cash tax payments, applications by non-citizens for a taxpayer identification number and refunds pending confirmation of a taxpayer's identity. 

 

We are open!


We are, as is the rest of the country, taking great measures to ensure the safety of our employees and clients by working remotely. Your IRS problem is not going to go away - but we are open and we are ready to assist you with your tax liability via teleconference or video conference. Call us today at 877 4 IRS LAW.
 

Inventor Bets on Gold & Loses

 
Attorney and Idaho state lawmaker John Green and his client, inventor Thomas Selgas, were convicted by a jury for conspiring to defraud the United States. Selgas was also convicted of tax evasion.
 
A long time tax defier, Selgas converted all his money into gold coins and bought his Texas ranch with gold coins in an attempt to use discredited U.S. currency theories based on gold. But after racking up a tax debt of $1.1 million, Selgas hid his funds by depositing them in Green’s Interest on Lawyers Trust Account (IOLTA). An IOLTA is an account used by a lawyer to hold money in trust for a client.
 
From 2007 to 2017, Selgas deposited funds from the sale of gold coins and other income into Green’s IOLTA account and Green paid Selgas' expenses, including credit card bills, from the account.  Selgas and Green also filed a false tax return on behalf of MyMail, an intellectual property development and licensing company Selgas co-founded, leaving out more than $1 million in income.
 
Selgas faces a maximum sentence of five years in prison for each of the conspiracy and tax evasion counts. Green faces a maximum of five years in prison for the conspiracy count.

 

 


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

A Bunch of  Jail Time for a Brady

 
Monique Brady owned a property rehabilitation business that turned out to be a $10.3 million Ponzi scheme. From 2014 through the summer of 2018 she claimed to be overseeing major renovations on foreclosed properties under contract with lenders such as Freddie Mac. She promised investors half the profits from the sale of the properties, but instead used the funds raised for plastic surgery, to pay her mortgage, to gamble and to take extravagant vacations.
 
When Brady found out she was the subject of an IRS investigation, she asked her investors, many whom were close friends, to delete all emails, texts and documents relating to their investments in her business.
 
Brady was sentenced to eight years in prison and three years of supervised release for obstructing an IRS investigation, wire fraud and identity theft. She was ordered to pay $4.78 million in restitution.

 

Golf Pro Swings and Misses

 
Kevin Kennedy, a former golf pro and owner of Kennedy Golf Management, has been indicted on embezzlement and tax fraud charges. Kennedy managed the two public golf courses in Springfield, Massachusetts and collected cart rental and greens fees on behalf of the city. From 2010 to 2016 Kennedy stole fees paid in cash directly from the golf courses’ cash registers and diverted other payments to his company’s account. To cover his tracks he provided the city with false records that under-reported the golf courses’ revenue.
 
Kennedy used the funds for personal expenditures and to build homes, and did not report the income on his 2010 through 2014 tax returns.
 
The indictment also charges that from 2009 to 2016 Kennedy conspired with Kent Pecoy and his son Jason, owners of a construction company, to obstruct and impede the IRS and the collection of taxes by concealing Kennedy’s cash payments for the construction of his homes. Kennedy paid the Pecoys' in cash and they, in turn, paid many of their vendors and subcontractors in cash, failing to report the majority of the income on their tax returns. The indictment alleges that the Pecoys' maintained false contracts and created false entries to conceal the cash payments.
 
If convicted, Kennedy faces up to 20 years in prison for each count of wire fraud and money laundering, 10 years in prison for theft concerning a program receiving federal funds, five years for conspiracy and three years for each count of filing a false tax return. He also faces restitution and monetary penalties. The Pecoys' each face five years in prison for conspiracy, restitution and monetary penalties.



 

Alabama Shakes Down Tax Evader

 
Alabama resident John Cooney has pled guilty to tax evasion.
 
In 2011, Cooney filed delinquent tax returns for 2008 through 2010, admitted that he owed the IRS almost $780,000.00 but failed to include a payment with his returns.
 
To evade the tax debt and future taxes, Cooney created an entity, GVA Advisors LLC, and directed income from his employer and dividends from his investments into an account in GVA’s name. Cooney deposited more than $435,000.00 from 2013 through 2016 into the GVA account, concealing the funds from the IRS.
 
By 2017 Cooney owed more than $1.3 million in outstanding taxes, penalties and interest.
 
Cooney faces a maximum sentence of five years in prison and has agreed to pay $1,311,904.00 in restitution.
Question:
I’ve been getting demand letters from the IRS saying I owe back taxes. This is taking over my life and I can’t sleep. What should I do?
 

Answer: 

Owing money to the IRS or State can be intimidating and throw your life out of whack, but ignoring these notices will only make things worse. It’s important to take immediate action.  The IRS has over 148 types of penalties they can assess, and the worst part is they can also charge interest on the original penalties. Penalties can be a high percentage of the total amount owed to the IRS. An IRS debt can double in a short time if you don’t take action to fix it.

The IRS has 10 years to collect from the date you filed your return and they won’t go away.  Not only can they freeze and take the money in your bank account, but they can garnish your wages and legally take as much as 90% of your net paycheck, without a court order!
 
You need a professional expert to help you deal with the IRS.  You can’t do this on your own, you’ll get crushed. As a matter of fact, going or talking to the IRS without expert representation could be the worst thing you can do.  The taxpayer Bill of Rights allows you to be represented by a qualified practitioner who can negotiate a resolution to the IRS in your best interest.

We at  IRS Trouble Solvers are experts in IRS tax problem resolution and help taxpayers with their IRS problems every day.  There is a solution to EVERY problem. Call us today at 877 4 IRS LAW for a FREE confidential consultation.

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

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Roz Strategies © 2019 Patrick T. Sheehan & Associates, d/b/a IRS Trouble Solvers®
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314 N. York Rd.
Elmhurst, IL 60126
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