Tax Preparers Hall of Shame: Tax Preparer Charged With Filing Fradualent Tax Returns

The New Inductee to the Tax Preparers' Hall of Shame comes from.....The Boogie Down Bronx!!!

A Bronx tax preparer has been charged with 46 counts for filing tax returns with the Internal Revenue Service and New York State that contained more than $7 million in fraudulent tax deductions and credits, resulting in over $2.5 million in fraudulent tax refunds.

Prosecutors indicted tax preparer Mark Goldberg for participating in a multi-year tax fraud scheme during which he prepared for clients thousands of tax returns that contained millions of dollars in fraudulent, itemized deductions and tax credits. 

Goldberg also allegedly prepared and filed tax returns for himself that fraudulently claimed that he had received significant amounts of wage income from which taxes had been withheld, and that he had paid significant amounts of state and local taxes.

Original story: www.accountingtoday.com/news/Bronx-Tax-Preparer-Charged-Claiming-False-Deductions-64772-1.html

Mr. Goldberg welcome to the Tax Preparers Hall of Shame! You have join an elite group of crooked tax preparers.

Free Falling: The Fiscal Cliff Explained

What is the "fiscal cliff?"

“Fiscal cliff” is the popular shorthand term used to describe the conundrum that the U.S. government will face at the end of 2012, when the terms of the Budget Control Act of 2011 are scheduled to go into effect. The Budget Control Act of 2011 was enacted due to the failure of the 111th Congress (bunch of suckas) to pass a Federal Budget and therefore as a compromise to resolve a dispute concerning the public debt ceiling.

Why should we care about the fiscal cliff?

A lot of tax laws are at stake that could affect our income. Among the laws set to change at midnight on December 31, 2012, are the end of last year’s temporary payroll tax cuts (resulting in a 2% tax increase for workers), the end of certain tax breaks for businesses, shifts in the alternative minimum tax that would take a larger bite, the end of the tax cuts from 2001-2003, and the beginning of taxes related to President Obama’s health care law. At the same time, the spending cuts agreed upon as part of the debt ceiling deal of 2011 will begin to go into effect. If that is not enough to worry you, according to Barron's, over 1,000 government programs - including the defense budget and Medicare are in line for "deep, automatic cuts."

What is the Republicans position?

Not to piss off anti-tax super lobbyist Grover Norquist and his infamous Tax Pledge.

What is the Democrats position?

Not to piss off President Obama and the 62,611,250 Americans that supported him in the 2012 election.

What are the chances that a compromise is reached before January 1, 2013?

I’m no political expert but I think at the last minute Congress will extend the tax laws for another year. Therefore, we will be dealing with the same mess next year around this time.

How can you take action?

First, stop being so angry at the IRS and do some research. The IRS is only the enforcer of the tax laws. Begin to direct your attention at the politicians that pimped your vote. Politicians in Washington make our national tax laws. Tell them that they need to stop playing games and come up with a compromise. I’m not here to pick a side and tell you who is right or wrong. However, I do believe that we did not vote for politicians to play such childish games with our money. Write, call, email, or tweet your elected officials.

 

 

Reasons Why You Should Love Enrolled Agents: Kenneth L. Bailey, EA

Just in case you didn't know (and I will keep reminding you).... Enrolled agents (EAs) are America's Tax Experts. EAs are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS.

Kenneth L. Bailey, EA thought you may want to know about this:

Understanding IRS Liens and Levies

There are many misunderstandings about IRS liens and levies. It is important to understand the differences between the various actions the IRS can take, and what they mean for a taxpayer.

Tax Liens - Filing liens are a normal course of business for the IRS when you owe taxes for an extended period of time. Liens are filed to protect the interest of the government. They are reflected on your credit report, and negatively affect your credit score. A tax lien is filed with your local clerk of court, and is a matter of public record. Unlike a collateral lien which entitles a lender to reposes a vehicle if you do not pay your liability, a tax lien is not against any particular piece of property that you own. A tax lien is filed against you as an individual, and "attaches" to your property. It entitles the IRS to any proceeds from the sale of attached assets such as real-estate.

Bank Levies - A bank levy is a one time action that seizes the balance of your bank account on a specific date. You only have 21 days from the date the letter was issued, or about two weeks from when you realize that your funds are missing, after considering the time it takes for mailing the levy notice and the time required by the bank to process it. It is important to contact the IRS as soon as possible and resolve your account if you wish to get the funds released. During this 21 day period, you can deposit additional funds without them being seized. The levy only freezes the balance as of the date the notice was received as well as the interest accrued on that balance during the 21 day holding period. After this period, the bank sends the funds to the IRS.

Wage Garnishments - A wage garnishment is a continuous action. It will continue to take up to 100% of your net income until it is released. Once they start taking the money, those funds are not recoverable under most circumstances, so it is important to act quickly to get them released. The Internal Revenue Manual (IRM) provides a minimum necessary amount be paid to a wage earner to afford basic living expenses. A subcontractor is treated as a business and does not hold that requirement.

Asset Seizures - In rare circumstances the IRS will seize assets such as vehicles, real-estate, or other personal property. This only happens in complex and high dollar cases. Only a Revenue Officer (collections field agent) can perform an asset seizure, not the general collection department (ACS). The IRS will only do this in rare circumstances because they are not in the business of selling property, they are much more interested in collecting cash to pay tax liabilities.

It is important to hire a competent representative to help fight for you if you owe back taxes to the IRS. Some local CPAs, EAs, and tax professionals deal with representation, however many are not very experienced in doing so. To get the best result possible, it is best to trust a company that specializes in tax negotiations and knows the rules of engagement. It is important to know that there are many bad companies in the industry that only want to take your money based on empty promises.

Who is Kenneth L. Bailey, EA?

 

Kenneth L. Bailey is an Enrolled Agent and has been working in the tax industry for over 7 years. He has previously managed a Liberty Tax Service franchise for two years, and has spent the last three years working exclusively in tax representation. He deals with clients that have IRS debt of anywhere from ten thousand to several million dollars, as well as represents clients through the audit or exam process. He knows the IRS rules and regulations, as well as how to represent clients to the highest standards in the industry. He is a member of the National Association of Enrolled Agents (NAEA), Florida Society of Enrolled Agents (FSEA), California Society of Enrolled Agents (CSEA), and National Association of Tax Professionals (NATP).

 

How can I contact Mr. Bailey?

 

If you are in a predicament with the IRS or state tax departments, contact Mr. Bailey at the National Tax Support by visiting www.Pay0Tax.com today.

National Tax Support, LLC
P.O. Box 6074
Vero Beach, FL 32961

Toll-free: 855-PAY-0-TAX (855-729-0829)
Local: (772) 242-9034
Fax: (772) 242-9033
email: Contact@NationalTaxSupport.com