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Tax Times Newsletter - April 2005

- Jay Schlichting

SUCCESS STORIES
We help real people with real tax issues - successfully.

• Correcting expensive audit mistakes
  • Challenge: After my business was audited, I was told that I owed the IRS more than $20,000.
  • Solution: The Schlichting Group thoroughly reviewed the audit.
  • Results: After The Schlichting Group correctly interpreted the tax laws, I only owed the IRS $433. From now on, I'm sending all of my company's tax information to The Schlichting Group for tax planning and preparation.
• Promoting the financial - and physical - health of our clients
  • Challenge: As a self-employed business owner, I struggled for years to build my business. As a result, all of my available funds were tied up in the company, and I neglected to pay my income taxes. I owed the IRS $96,000. I tried to resolve the problem on my own, but the stress began taking a toll on my health.
  • Solution: The Schlichting Group took on my case and began negotiations with the IRS.
  • Results: I was able to fully resolve my $96,000 debt for $700. Even more importantly, I got my life back.

TOP NEWS

• 10 Arrested in Scheme to Steal $18m in Refunds
       Ten people in California have been arrested and indicted for their role in a scheme to steal 6,700 tax refund checks worth about $18 million.
       The indictment alleges that the defendants conspired to steal United States Treasury checks from a postal facility and, with the help of employees known as "inside plugs" at financial institutions and other businesses, to cash those checks. The conspiracy relied on a Postal Service employee to steal the checks, as well as "walkers" who obtained false identifications to help cash the checks.
       Among those arrested are: Talcum Marsh III, 46, Los Angeles; Benjamin Marsh, 39, Woodland Hills; Rashaad Green, 26, Long Beach; Eric Muhammad, 26, Venice; Timothy Jones, 36, Corona; Marvin Miller, 32; Eutonia Lewis, 35, Corona; Joel Boyd, 29, San Celemente; and Robert Lobo, 36, Costa Mesa.
• Arizona Man Claims $0 As Income
       Dorvin J. Jones, 54, of Prescott, Ariz., has been indicted on charges that he claimed $0 as income for three years when, in fact, he made much more.
       The indictment alleges that Jones earned $72,008 in 1998, $96,858 in 1999 and $32,250 in 2000.
       If convicted, he faces up to three years in prison and a fine of up to $250,000.
• Tax Bill Sends San Diego County Man to Jail
       A La Mesa man who invented an automotive product and sold the company he formed to market it for $1 million was sentenced today to 33 months in federal prison for failing to pay income taxes on the money generated by the sale.
       John Zentmyer, 62, who was formerly a reserve officer for the Los Angeles County Sheriff's Department, invented a wheel-locking device to be used on four-wheel-drive off-road vehicles. After forming a company to market his product, he sold the company in 1996 for more than $1 million. Zentmyer then failed to file a tax return that reported any of the funds generated by the sale.
       Zentmyer, who represented himself at the beginning of the trial and later represented himself jointly with an advisory counsel, argued that he was not guilty of tax evasion because he believed in good faith that he did not have to pay income taxes after reviewing old Supreme Court cases. He also claimed that he structured his financial transactions only because the bank required his Social Security number to file its report with the government and his religious beliefs prevented him from divulging his Social Security number, which he said he believed is the "mark of the beast."

THE ANSWER SPOT

• I haven't filed tax returns for five years, and I have lost all my records. Can you help me?
  Yes.  We can get IRS information on your earnings and then estimate your expenses through your oral testimony and other methods.  Contact us immediately.  Don't delay any longer.
  

ASK THE EXPERTS

• I owe a great deal of money to the IRS, and although my job and assets certainly won't allow me to claim poverty, I just can't pay the whole amount at one time. A colleague mentioned an Installment Agreement. Is this something that could work for me?
       Good question. And the answer is, yes, quite likely it would work for you. For those who do not qualify for the Offer in Compromise program - which allows taxpayers to reduce their tax debt by pennies on the dollar if they can prove they are not able to pay the debt - an Installment Agreement is generally the best option.
       For a variety of reasons, average taxpayers find themselves in situations where they cannot pay their tax debt. In nearly every instance, the taxpayer did not intend to amass such a large debt. It just happened. The IRS is well aware of this. That's why collections agents are usually receptive to an Installment Agreement. Besides, as far as the government is concerned, a little money now and then is better than no many at all.
        Here's how an Installment Agreement works: Once you and a qualified tax professional analyze your previous tax returns and come to the exact amount you owe the government, you can then negotiate a situation in which you will pay the tax debt off over a period of time. Your tax professional and the IRS agent assigned to your case will review your income information and assets and come up with a monthly payment amount that will not adversely affect your life or lifestyle. For instance, if you're sending a kid to college, don't worry about it - your ability to pay tuition costs will not be affected.
       I deal with problems such as yours every day. I'm an IRS Problem Solver with years of experience dealing with the IRS. I think you'll find much of the IRS-related stress you currently feel will be alleviated with one visit. For a free, no-risk consultation, please call my office toll free at 1-877-590-2500.

Tax Times Newsletter is an online Publication by
The Schlichting Group
Specialists in IRS Representation and Tax Preparation