Latest "IRS Tax Issues" Posts

Don’t Mess with the IRS!

Douglas Michael Lang, 50, of Greensboro, NC was sentenced for charges of tax evasion to 18 months in prison plus a special assessment of $ 100.00, a fine of $5000.00, and 3 years supervised release. Douglas Michael Lang must also pay $607,608.00 in restitution.  Here’s but one example of the simple rule – don’t mess with the IRS.

IRS

IRS

On January 15, 2015, Lang was charged with failing to file income tax returns, failing to pay income tax, and committing acts of tax evasion. The acts included the payment of personal expenses from Protocol LLC and R & J Vending LLC, two companies that Lang controlled and owned. Lang also retitled his interest in Protocol LLC, of which he was the sole owner, in the name of House of Psalms, an ostensibly religious non-profit entity controlled by Lang. Lang was also charged with opening a bank account in the name Spirit of Angels, another ostensibly religious non-profit entity controlled by Lang. Each of these acts represented conduct Lang undertook to evade the assessment of tax liability.

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Posted by Chuck Gallagher in IRS Tax Issues, Tax Fraud and tagged , , ,

Accounting Fraud: Do You Know What Your Internal Accounting Staff is Doing?

Accounting fraud is dangerous and something that Amy Hilty, 38, formerly of Stanley, N.C. and now residing in  Dalton, Ohio, pleaded guilty to stealing nearly $400,000 from her former employer.  Hilty pleaded to one count of wire fraud and one count of tax evasion.

Accounting FraudThe background:

From 2008 to 2012, Hilty was employed as accounting manager for a company located in Huntersville, N.C.  As the company’s accounting manager, Hilty’s responsibilities included preparing the company’s financial statements, maintaining QuickBooks, preparing payroll and making bank deposits.  According to court records, Hitly used her access to the company’s accounting system to divert company funds to bank accounts she controlled.  This is accounting fraud at its most basic.

The Cover Up:

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Posted by Chuck Gallagher in Financial Fraud, Fraud Pure and Simple, IRS Tax Issues, Tax Fraud and tagged , , , ,

Cheating on Your Taxes: Is it Ever OK?

“In this world nothing can be said to be certain, except death and taxes.”

Benjamin Franklin’s words still resonate today. If we are to stay on the up and up, we simply must pay our taxes.

Tax deductible grunge rubber stamp on white background, vector illustration

Tax deductible grunge rubber stamp on white background, vector illustration

Regardless of the obligation, we all have an opinion on the matter. We may believe that our hard-earned money isn’t wisely spent in Washington. Small business owners often feel that they are too heavily taxed.  Different viewpoints can lead us to rationalize our decisions as to how we file in April.

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Posted by Chuck Gallagher in Business and Personal Ethics, IRS Tax Issues and tagged ,

Al Sharpton and Back Taxes. Why is he not in prison?

Being an ethical observer of society, I am often fascinated by “privilege.” Who gets it, who gets to keep it and who uses it to their advantage?  With significant back taxes owed, the question is why is Al Sharpton not in prison?

Al SharptonFor example, when I watch an NFL game, I am always curious to see the celebrities and the politicos who stand on the sidelines. Most of these folks have never so much as played a down of football, yet there they are, hobnobbing with the defensive linemen. Why? I do not know.

Stars and starlets, congress people and other big shots never wait in lines; not for restaurants or airline check-in or to use the restrooms for that matter.

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Posted by Chuck Gallagher in IRS Tax Issues, Political Ethics, politics, Tax Fraud, You Gotta Be Kidding and tagged , , , , , ,

Avoid paying taxes! Be a vendor to the IRS?

The results of a July 2012 Inspector General probe into IRS vendors have just been brought to light – and it doesn’t look good. In an article released by the Associated Press (December 18, 2013) entitled: “IRS vendors owed $589 million in back taxes, report says,” we learn IRS logothat: “Altogether, 1,168 IRS vendors owed back taxes totaling $589 million as of July 2012, according to the report released Tuesday. Only 50 were in a payment plan to pay off their debt.”

The article goes on to tell us that: “The IRS checks whether vendors owe back taxes when the agency awards contracts, the IRS said. But the IRS doesn’t continuously monitor whether vendors are current in their tax bills after contracts are awarded.”

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Posted by Chuck Gallagher in business ethics, ethics, Ethics - Political, IRS Tax Issues, You Gotta Be Kidding and tagged , , , , , ,

Who Watches the Watchdog? IRS Faces Ethical Issues

Of all targets, there is perhaps no more “beloved’ target to attack these days than the IRS who are facing a number of ethical issues. For many people, it is pure IRSdelight to watch the watchdogs turn and squirm as the light shines on their misdeeds. Whether, they are caught scrutinizing the Tea Party, spending millions at silly-themed conventions, or are secretly taped doing line dances at employee team building exercises, many relish in their misdeeds at missteps.  I however do not…

Now the latest.

According to a Reuters report posted on MSNBC (May 29, 2013) entitled: Some IRS Employees Misuse Travel Credit Cards: Watchdog, between 2010 and 2011, about 1,000 IRS employees misused their travel credit cards. They were “caught” by the U.S. Treasury Inspector General for Tax Administration. The IRS admitted that although the misuse was relatively low (there are about 90,000 IRS employees), that it was still a serious issue.

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Posted by Chuck Gallagher in business ethics, Choices and Consequences, Department of Justice, IRS Tax Issues, Political Ethics and tagged , , , , , , ,

Ernst and Young $123million Tax Shelter Settlement? An Ethical Issue?

It’s not a bad thing nor is it a crime…to have tax shelters. After all, these loopholes were Congressionally created as a medium to allow individuals and businesses the opportunity to reduce major income taxes. But… let’s not get it confused. As with anything in our society that we place in an ethical or unethical category, there is a right way and a wrong way to achieve the end.  As a business ethics speaker, I see the application of this principle daily.  The use of legal and legitimate tax shelters is a means to avoid high or excessive taxes…not to totally evade them…or do you think tax evasion is ethical?

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Posted by Chuck Gallagher in Business and Personal Ethics, business ethics, ethics, IRS Tax Issues and tagged , , , , , , , , , , , , ,