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Tax Times Newsletter - July 2005

- Jay Schlichting

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

• Taking a paycheck back from the IRS
  • Challenge: After failing to file tax returns for two years, the IRS began seizing my wages.
  • Solution: The Schlichting Group took on my case, working fast to keep the IRS from taking my paycheck.
  • Results: The Schlichting Group prepared and filed the tax returns, negotiated a payment agreement and got a full levy release - all in just two days. My problems were resolved quickly and painlessly.
• Making payment plans more affordable
  • Challenge: I did not file tax returns or make tax payments for several years. The IRS came after me, claiming I owed thousands of dollars in back taxes.
  • Solution: The Schlichting Group quickly prepared and filed my outstanding tax returns. Because I owed so much money, they worked to negotiate a payment plan I could keep up with.
  • Results: After extensive, high-level negotiations, the IRS agreed to let me pay off my taxes over a nine-year period. Thanks to The Schlichting Group, I am paying off my back taxes in a way I can afford.

TOP NEWS

• Millionaire Bookie Sentenced on Tax Evasion Charges
       Robert Angleton, a former bookie and police informant who was accused of shooting his wife in 1997, was sentenced to seven years in prison for tax evasion.
       Angleton, 58, of River Oaks, Texas, was found guilty in February of evading more than $1 million in federal excise taxes on wagers of more than $64 million from 1995 to 1997.
       Prosecutors first charged Angleton and his brother, Roger, with killing Robert's wife, Dorris. She was found shot death in the kitchen of their home. Robert was acquitted after his brother killed himself in jail.
       In sentencing Angleton on tax charges, U.S. District Judge Kenneth Hoyt said: "You have engaged in and lived a life that basically centered on illegal activity. A life that is lived and centered on illegal activity will eventually result in a great fall."
• Calif. Businessman Sentenced to 1 Year
       Daron J. Tomas, 54, of Bakersfield, Calif., the president and chief operating officer of Consolidated Fiberglass Products (CONGLAS) was sentenced to 12 months in prison for filing a false tax return in which he underreported his income by $500,000.
       According to prosecutors, Tomas admitted in his plea that he obtained over $1.5 million from CONGLAS over a three-year period by writing hundreds of $2,000. He used the money for extravagant improvements to his home in Bakersfield that included a 3,400-square-foot guest home, a maze garden and related lighting, a circular corral, a gazebo, a jet ski ramp, a tack house, a lighted soccer field and horse.
• Trust Operator Gets 41 Months for Tax Scam
       The operator of a trust used to hide income from the Internal Revenue Service was sentenced to 41 months in prison and ordered to pay a total of $897,773.45 in restitution.
       Star L. Mathias, 52, of Phoenix, had been charged with conspiracy to defraud the United States. From January 1995 to December 1997, Mathias and others joined together in an organization known as PROTEC to promote and market a system of trusts in which individual taxpayers would illegally reduce the income on which they would pay federal taxes.
       Mathias admitted that in one instance she advised a client to purchase a package of offshore trusts to pass through the client's business income. The income was to be transferred to an international corporation, which had no filing requirement and, therefore, no federal tax liability. Mathias advised the client that with the purchase of the offshore trust package, the client could eliminate taxes for the entire year. Mathias also advised the client to have her spouse place his income from wages into a business trust containing their personal residence and to take deductions against the income based upon expenses of running the residence.

THE ANSWER SPOT

• The IRS is going to audit me. Should I be concerned?
  Greatly!  This is an IRS money-raising project.  Protect your income and assets by getting representation.  Call us immediately.
   

ASK THE EXPERTS

• A colleague of mine mentioned that he has some sort of an agreement with the IRS in which he makes a monthly payment. He says that it will eventually satisfy his tax debt. I have tax debt as well, but I don't think the government has ever offered me such a payment plan. Is this for real?
       Yes, it is. While IRS agents don't go around advertising it, the federal government does offer what's known as an Install Agreement. It's really pretty simple - and can be great for taxpayers who are in a position to use it.
       Here's the breakdown: After decades of chasing taxpayers to collect unpaid debts, the government realized that it can more effectively deal with taxpayers gently rather than with a strong arm. If you qualify, it could be the perfect solution for you to get rid of IRS debt.
       First of all, you'll want to consult a qualified tax professional. He or she will analyze your previous returns with a fine-toothed comb to make sure that you are not going to pay the IRS a penny more than you owe. Once you and your tax professional have the exact amount you owe, you'll meet with an IRS Collections Agent. After showing the agent your tax debt and current finances, your tax professional will work out a monthly Installment Agreement with the IRS. Now don't get scared. No matter how much you owe, you can likely find a way to make it work as a small monthly payment. Over time that payment will satisfy your IRS debt.
       This monthly payment will be similar to a mortgage or car payment - something substantial but also something you can learn to live with. Consider the alternative: A tax bill looming over your head, stressing you out and making you lose sleep. Or worse! If you are not financially able to pay your debt, another option you can consider is an Offer in Compromise. You should discuss this with a qualified tax professional.
       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