When accounting goes unaccounted for
Our contributor Joe Kristan has spent most of July on vacation in an undisclosed location but he returned this week and didn’t waste any time pointing out some irony courtesy of the IRS.
What you see above is a clip from the list of tax-exempt entities in Iowa who have not filed their Form 990 and need to take action by the new drop dead date of October 15th.
Welcome back, Joe.
Let this serve as a warning to any would-be embezzlers out there, if you steal, you better report it to the IRS.
42-year-old Collette Snyder of Timonium, MD pleaded guilty earlier this month to filing false tax returns in 2007 and 2008 after she neglected to claim over $382,000 embezzled from her former employer, Towson, MD-based Maple Leaf Title.
As part of her duties at the title company, Snyder had signature authority over the company’s operating, settlement and recording accounts, which allowed her to begin embezzling money from MLT accounts starting in 2007. She deposited company checks directly into her personal bank account, as well as made checks payable to her husband without his knowledge, forging his signature to deposit those checks in an account he was not aware of. At that point, Snyder had been an employee of MLT for two years.
Snyder took around $149,560 in 2007 and $232,968 in 2008. These embezzled funds were used to purchase jewelry, a BMW, trips, home improvements and private school tuition.
Because reporting this money to the IRS without it clearly declared on her W-2 (despite her writing “payroll” in the memo section of company checks she wrote out to herself) would have alerted authorities to the fraud, Snyder neglected to mention the ill-gotten gains. This resulted in an estimated tax loss of $115,529.37 for her 2007 and 2008 returns.
Due to the embezzlement by Snyder and MLT President Anthony Weis, MLT was unable to perform its duties as a provider of settlement services. With MLT’s escrow account drained, existing mortgage notes could not be paid off by MLT, meaning clear and free title could not be passed to the new lender and borrower of those notes. An insurance company that had issued title insurance policies to the borrowers guaranteeing clear title ultimately paid out $3.9 million to financial institutions that held mortgage notes.
Weis pleaded guilty to wire fraud, was sentenced to 78 months in prison and was ordered to pay restitution of $4,007,705, which includes the loss to the title insurance company and the expenses of the individual victims. He began his sentence in May of this year. The interesting part of this story is that Weis stole money intended for his clients’ real estate closings. And then Snyder stole from the company. Birds of a feather…
Snyder faces a maximum sentence of three years in prison and a fine of $250,000. U.S. District Judge Catherine C. Blake has scheduled her sentencing for February 3 , 2012 at 11:00 am.
“Mortgage fraud adds to the underground economy that erodes the integrity of our tax system and threatens the financial health of our communities. IRS Criminal Investigation is committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice,” said IRS – Criminal Investigation Special Agent in Charge Jeannine A. Hammett.
Actually they ask you a lot questions but as FINS tells us today, there are far more interesting qualifications to join Doug Shulman’s brigade than, say, one of the Big 4.
For example, if you’re the ripe old age of 38 and you’ve never served in law enforcement, you’re out. Sorry but this is the Criminal Investigation Division and we don’t need your old college intramural energies acting up on raid where someone might get killed.
That being said, just because you happen to be in the “prime” of your life, that doesn’t mean you get a free pass. The Service does require that you be in “prime physical condition” and your slow, uncoordinated ass will be tested on it.
Here’s the lowdown:
If any of this is confusing (we know some of you haven’t exercised in you life) jump over the website where there are videos demonstrating the vertical jump, bench press, situps, The Illinois Agility Run, and simply running. Again, the Service appears to be under the impression that plenty of you only break a sweat when you eat, hence the videos. Feel free to apply but only after checking with your doctor.
IRS Hiring Special Agents for Criminal Investigation Division [FINS]
Just when you thought things couldn’t get more exciting in the world of overeating, Dairy Queen has announced that it will be handing out free ice cream in front of the IRS Building in DC tomorrow at 10th St. and Pennsylvania Ave. NW.
According to the Washington Business Journal, the Blizzardmobile will be parked outside and mini blizzards will handed out to “taxpayers and accountants” (why didn’t they just say “everyone”?).
This momentous occasion not only marks the end of the traditional return filing season but it is also marking the Blizzard’s 25th birthday. This might, just might, cajole some Tea Partiers to leave their homes as opposed to marching on the Internet (especially since there doesn’t appear to be a limit per taxpayer/accountant).
However! The window of opportunity is short and you’ll only have from noon to 1 pm to get your miniature cup of refined sugary goodness. One might think that since Doug Shulman might be anti-pizza that he also might have something against blended ice cream confections. But on the other hand, Warren Buffet didn’t get filthy rich by giving away crackalicious deserts for free now, did he?
Free ice cream outside IRS building [Washington Business Journal]
