Category: Tax

Needed: Honest CPA’s for New York State

thumbs down col.gifAs if the State of New York doesn’t have enough trouble with half of the citizens think their legislature is the worst in the country, annoying artwork, and a budget crisis. Come to find out, part of this whole budget nightmare might be due to an unusual amount of bogus tax returns.
This is a quote from a profile of the NYS Deputy Commissioner of Tax Enforcement (our bolding):
The rest, after the jump

This year, we’ve done a little project on tax preparers. We go out pretending to be tax preparers … we’ve done it at 170 different tax preparers. Fifty-one of them have prepared bad returns that are just horribly fraudulent. I have some transcripts … here’s one: a tax prepared describes how he’s gonna do a ‘ho-hum, no muss, no fuss, simple [expletive] return that’s gonna get through the system’ and he’ll never get audited and never get caught. He underreports income then for two years of about $80,000. That he knows. Do you think he knew what he was doing? He was selling our investigator as a taxpayer, ‘I know how to cheat without getting caught.’ … We’ve arrested about 20 this year so far. And there’s lots more in the wings.”

Horribly fraudulent? God help us.
Capital Profile of William Comiskey [Albany Times Union via TaxProf Blog]

Hammer Wants Everyone to Know That the IRS Can’t Touch This

mc-hammer.jpgWhy on Earth would someone like MC Hammer have to go and make reassuring claims about his financial situation? The fact that the IRS is hassling him with an illegit, illegit to quit, tax lien has us completely nonplussed (is that the right word?). The man is the poster child for rag to riches to completely over-leveraged riches to bankruptcy to mediocre comeback celebrity.
More on HammerTime’s trubs, after the jump


Hammer is all bent out of shape over a lien that the IRS slapped on him last month for $625k that is related to some damn thing 15 years ago. Right about the time when he was working really hard at going bankrupt.
HammerTime would also like everyone to know that along with a hit TV show, he is a very successful Twitterer with over 1 million followers, so obviously this whole tax lien is a huge misunderstanding because everyone knows that 1 follower on Twitter = $1 in the bank. So if the IRS could just drop it, that’d be great. Thanks.
MC Hammer Raps IRS over Tax Debts [Web CPA]

The IRS Should Really Reconsider Their Employee Screening Process

IRS_logo-thumb-150x140.jpgIn another case of former a IRS Agent having reckless disregard for their old employer (i.e. the Federal Govt.), a 76 year-old former agent was sentenced to nearly four years in prison for his part in a fraudulent tax scheme that went on from 1998 to 2000. Thomas Steelman was also ordered to pay more than $10 mil back to the Service.
The old guy really worked hard at his craft too:

He took part in promotional meetings, conferences, rallies and telephone conference calls to promote Renaissance’s services and recruit clients, according to prosecutors. Steelman was also a featured speaker on Renaissance’s promotional videotapes.

From the sound of it, this guy Steelman was the Peter Olinto Tim Gearty Rick Duffy of Renaissance, The Tax People, the defunct company he worked for. It disappoints us how the pleasure of serving your country, as crusader for tax compliance, would eventually lead to a life of a scofflaw and tax avoidance. We are truly saddened that there continues to be very few true tax heroes among us.
Ex-IRS Agent Sentenced to 46 Months for Tax Fraud [Web CPA via TaxProf Blog]

UBS is Naming Names (Finally)

300px-Toblerone-1.jpgIn what probably amounts to UBS caving out of pure exhaustion from the nagging of U.S. Tax authorities, the Swiss Bank reached an agreement in which it will turn over names of wealthy clients. The Wall St. Journal is reporting that it could be between 8,000 and 10,000 names which will likely get UBS on the list at Hop Sing’s with Ned Isakoff.
More, after the jump


The whole sitch has caused many to confess their offshore banking sins and may make for more begrudgingly honest reporting of offshore accounts in the future but we hope that in hindsight, future Swiss negotiators see the wisdom of considering the undying power of the cocoa bean.
UBS Tax Lawsuit Settled by U.S., Swiss Governments [Bloomberg]
UPDATE: Read more at our sister site, Dealbreaker.

The IRS is Warm and Cuddly Again

IRS_logo-thumb-150x140.jpgObviously not wanting to ruin its grandmotherly image, the IRS has announced that will extend its deadline for certain taxpayers to submit their “Report for Foreign Bank and Financial Accounts” or FBAR.
The administrative relief is for “taxpayers with signature authority over, but no financial interest in, a foreign financial account, and taxpayers with a financial interest in, or signature authority over, a foreign commingled fund.”
Perhaps realizing that putting the gun to the collective head of taxpayers that have foreign bank accounts isn’t the best approach or coming to the conclusion that the drop dead filing date of September 23rd just didn’t make any damn sense, the new deadline is now June 30, 2010.
IRS Extends FBAR Filing Deadline Again [Web CPA]

Rumor of the Morning: Tax Layoffs to Come After Filing Deadlines?

Over the weekend we received an email that basically confirmed our suspicions that many of you were working over the weekend. Considering the time of year, it doesn’t come as much of a surprise that hours are starting to pile up and you’re spending at least one hour a night deciding where you’re ordering take out from.
We received word over the weekend that tax groups at KPMG PwC all the major firms are working like crazy already in anticipation for the September 15th and October 15th filing deadlines.
There have also been whispers among some in the tax practice at KPMG that layoffs may occur after the deadlines due to large number of idle hands that will be around after the deadlines pass.
Tax associates out there, let’s know what your hours have been, what you’re hearing about post-deadline layoffs, and where you don’t want to get take out from ever again.

Your Token IRS/UBS Update

300px-Toblerone-1.jpgIn, oh for the love of God make it stop, news, Judge Alan Gold has allowed the IRS and UBS more time to hammer out a deal over 52,000-someodd names of American account holders.
There was supposed to be a deal today but then the judge said the 10th would be fine. Now the 12th is the date and if that doesn’t work, then they have until 17th. OH to hell with it. Who needs a drink?
U.S. and UBS Get More Time to Reach a Deal [DealBook]

Michael Jackson’s Doctor is a Deadbeat

1.michael_jackson_71246050015.jpgWe have failed again to avoid deceased King of Pop news. Turns out the doctor who is suspected of providing Jackson with drugs that may have killed him is also is a tax scofflaw.
Dr. Conrad Murray is facing a $20k tax lien to the State of California, who, we’ve heard, needs the money. It was filed nine days before Jackson died which will likely add to the batsh!t crazy conspiracy theories surrounding his death.
Michael Jackson Doctor Faces Tax Lien [Web CPA]

Nic Cage Can’t Afford Another Bangkok Dangerous

raising.arizona.073007.jpgNicolas Cage is keeping his reputation as a tax scofflaw intact, as he currently owes the IRS $6.2 million due to a lien the Service slapped on his house in New Orleans. Last September, Cage settled with the Service for the diabolical sum of $666,000 after he improperly deducted $3.3 million in personal expenses, including must-haves like limo service and a Gulfstream.
Our advice to Cage would be to seriously consider going full frontal in his next film, Bad Lieutenant, Port of New Orleans. If not out of pure artistic principal and respect for the original version, do it for the extra scratch, man. A johnson shot has got to be worth, what, a couple mil?
Nicolas Cage Hit with $6.2 Million Tax Lien [Web CPA]

UBS and IRS Probably Have a Deal, No Toblerones Involved

300px-Toblerone-1.jpgUBS is going to name names, albeit not all of them, bringing us to ever so close to the bitter end of the whole IRS/UBS standoff.
All the gory details are expected to be released on August 10th, when hopefully everyone will kiss and make up officially.
The focus of the settlement will be around 7,000 or so accounts that are associated with offshore companies and trusts that are possibly tied to some financial shenanigans. Under the potential settlement, UBS won’t turn over any names until after September 23rd, which is the last day for offshore account holders to confess their sinful ways.
Deal Reached in UBS Tax Battle [WSJ]

Wanted: New Political Rhetoric to Pander to the Populist Masses

taxes_protest.jpgWealthy taxpayers now have some legit data that allows them to give the finger to all the rabid populist outrage that’s been going around. According to the most recent data provided by the IRS, the top 1% of taxpayers pay more taxes than the bottom 95%. The wealthiest 1% picks up 40.4% of the tax bill while the bottom 95% gets 39.4%.

This amounts to pretty inconvenient data for lots of Democrats politicians who have been screaming for years that the wealthiest Americans need to pay more taxes.

Tax Burden of Top 1% Now Exceeds That of Bottom 95% [Tax Policy Blog via TaxProf Blog]

Some Taxpayers Seeking Enlightenment, Others Risking Eternal Damnation

the-end.jpgThe IRS is saying that wealthy taxpayers are rethinking their sinful offshore banking ways in expectation of a tax evasion rapture.
Last week the Service had 400 applicants for its temporary voluntary disclosure program which is four times the amount they had in all of last year suggesting that some taxpayers are seeing the light.
The IRS evangelism has come about mostly because of their pursuit of the 52,000 secret names held by UBS. While this battle for souls is still continuing, the IRS figured they’d make a run at converting other, non-UBS, sinners.
Seek thy truth, after the jump


Some taxpayers are remaining non-believers however, thanks to their agnostic attorneys:

Yet attorneys say that those who come forward now risk supplying the IRS with more financial information than the agency may have otherwise been able to collect. “These taxpayers reasonably fear that applying to the program could supply the agency with a roadmap it would not otherwise have,” said Barbara Kaplan of Greenberg Traurig in New York, who handles voluntary-disclosure cases. “They worry that they could wind up both rejected for clemency and helping the IRS case against them.”

Ultimately, all taxpayers will have to take their own path but if they find themselves cast into the darkness, they won’t be able to say that the truth wasn’t presented to them.
Tax Evaders Flock to IRS to Confess Their Sins [WSJ]