A weekly summary of headlines, press releases and blog postings related to IRS and state civil and criminal tax law enforcement. See headlines for the week of May 27 – June 2, 2012.
Owner of Hawaii Car Dealerships and Chief Financial Officer Plead Guilty to Tax Crimes, Department of Justice Press Release
Charles Alan Pflueger, owner of Pflueger Inc., Randall Kurata, the company’s chief financial officer, and Julie Kam, Pflueger’s executive assistant, pleaded guilty to filing false federal income tax returns before U.S. District Court Judge Leslie E. Kobayashi in Honolulu, the Justice Department and the Internal Revenue Service (IRS) announced.
Self-proclaimed “Governor” of Alabama Sentenced to Ten Years in Federal Prison for Tax Fraud, Department of Justice Press Release
Monty Ervin and Patricia Ervin, owners of Southern Realty in Dothan, Ala., were sentenced today to federal prison for conspiring to defraud the United States and tax evasion, the Justice Department and Internal Revenue Service (IRS) announced. After a two-week trial that began Oct. 25, 2011, a federal jury in Montgomery, Ala., convicted the Ervins of one count of conspiracy and three counts of tax evasion. The jury also convicted Patricia Ervin of one count of structuring transactions to avoid bank reporting requirements. Monty Ervin was sentenced to 120 months in prison; Patricia Ervin was sentenced to five years of probation, with the condition that she spend 40 consecutive weekends in jail. In sentencing the Ervins, the court found that Monty Ervin was the leader and organizer of the conspiracy and exercised control over Patricia Ervin.
New York Businessman Pleads Guilty to Filing False Corporate Tax Return, Department of Justice Press Release
Sung Soo Shin, of Staten Island, N.Y., president of Mission Design and Management Inc. (MDMI), pleaded guilty in the Eastern District of New York to filing a false corporate income tax return, for the fiscal year 2009, before U.S. District Court Judge Nicholas G. Garaufis, the Justice Department and the Internal Revenue Service (IRS) announced.
Woman Convicted of Tax Fraud Conspiracy in South Florida Sentenced to 51 Months in Prison, Department of Justice Press Release
Nasheba Necia Hunte was sentenced today to 51 months in prison for her role in a conspiracy to defraud the Internal Revenue Service (IRS) and for filing false tax returns, the Justice Department and IRS announced. Hunte was also ordered to pay $229,305 in restitution to the IRS.
Maryland Business Owner Sentenced for Failing to Pay Employment Taxes, Department of Justice Press Release
Richard Stewart, a resident of Mitchellville, Md., was sentenced to 24 months in prison and ordered to pay $5,414,647 in restitution to the Internal Revenue Service (IRS) by U.S. District Judge Roger W. Titus for failing to pay over employment taxes in connection with his ownership of Montgomery Mechanical Services, the Justice Department and IRS announced.
Tampa Man Arrested for Tax Fraud and Aggravated Identity Theft, LoanSafe
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said IRS Criminal Investigation Chief Richard Weber. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers.
Racers owner’s tax evasion trial set, Cincinnati.com
It charges him with three counts of tax evasion. He filed a tax return for 2005 that showed he made $1 million in adjusted gross income, but prosecutors claim Lawrence made more money than he reported. Authorities also claim he under reported his …
Ex-UBS Client Roessel Pleads Guilty in Offshore Tax Case, Bloomberg
He agreed to pay a civil FBAR penalty of $5.75 million as well as taxes due of $312803. He is helping prosecutors in a crackdown on offshore tax evasion. US prosecutors have charged almost 50 US taxpayers with tax crimes since 2009, when UBS avoided …
Medford Broker Gets Prison For Tax Fraud, OPB News
Samuel S. Fung, 56, pleaded guilty to tax fraud charges and is scheduled to begin serving a 27-month prison sentence on Aug. 23. Fung was once a big player in Jackson County’s commercial real-estate scene. In 2007, he opened Oregon Commercial, …
Second Z&Z preparer gets two years in tax fraud, LubbockOnline.com
Montelongo pleaded guilty March 8 to one count of tax fraud in connection with the scheme, and at a hearing Friday morning asked for leniency because “I accept full responsibility for my crime.” She also asked Cummings if he would recommend that she be …
Scottsdale man indicted in $592000 income-tax fraud, Arizona Republic
AP A federal grand jury in Phoenix has indicted a Scottsdale man, accusing him of income-tax fraud. The US Attorney’s Office in Arizona said 43-year-old Jon Nikolai Carlson filed for almost $592000 in false returns over a four-year span.
IRS Mistakenly Sent Warning Letters to e-File Providers
The Internal Revenue Service mistakenly sent out letters to some electronic filing providers advising them that they needed to contact the IRS in order to continue to participate in the e-file program.
Tax Court: No Cancellation of Debt Income Despite Form 1099-C
The Tax Court, in a recent summary opinion, ruled that an individual did not have cancellation of debt income in the year that a collection agency issued him a Form 1099-C and stopped its automated collection efforts.
Appeals Court Slaps Accounting Firm for Tax ‘Screw Up’
Ouch! In affirming a Tax Court decision that an accounting firm set up as a C corporation could not deduct consulting fees paid to entities controlled by the firm’s owners, the Seventh Circuit Court of Appeals statement of its decision cut to the quick: “That an accounting firm should so screw up its taxes is the most remarkable feature of the case.”
William Lovett
Sean McMahon
