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Tax Times Newsletter - March 2006

- Jay Schlichting

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

• The Tax Man cometh - Get ready for the March deadline with the IRS experts
  At Schlichting Group, we know the IRS - inside and out. We've proven that with a 95 percent success rate solving our client's tax problems.  So why not let Schlichting Group prepare your 2005 corporate tax return.  We provide:
  • the same high quality as more expensive accounting firms
  • expertise in even the most confusing IRS regulations, which can be leveraged to create the most favorable tax return for your company
  • cost savings that will go straight to your bottom line

  
  We apply our motto - pay your fair share, but not a penny more - to preparation of tax returns, just as we do to IRS audits and settlements.
  
  Let our tax preparation pros work for you. And get more IRS expertise - for less money. Contact the Schlichting Group today to get rolling on your 2005 tax return.

TOP NEWS

• 'Survivor' in Even More Tax Trouble
       Richard Hatch, made famous as the winner of the first season of the Survivor reality television show, is in deep tax trouble.
       Convicted in January in federal court for attempting to evade taxes on his $1 million in prize money, plus other miscellaneous income, Hatch is now wanted by authorities in Van Buren County, Mich. They say the 44-year-old Survivor winner has not paid property taxes since 2002, despite owning nine properties in the county.
       "He was sent at least three notices [of overdue tax bills]," Township Treasurer Mary Fogarty told the Kalamazoo Gazette.
       Hatch is currently awaiting sentencing for the federal tax evasion conviction. He faces up to 13 years behind bars. "I don't think we'll see any money out of him," Fogarty added.
• Doctor Indicted on Tax Evasion Charges
       A Clovis, Calif., doctor has been charged with three counts of tax evasion, one count of obstructing and impeding the IRS and two counts of presenting false and fictitious instruments to the United States.
       David J. Edwards, 74, is a doctor with medical offices at Sunnyside Medical in Clovis. The indictment alleges that Edwards evaded the payment of $55,0974 in taxes for 1998, $205,456 for 1999, and $148,291 for 2000. Edwards also submitted false documents to the IRS which he represented to be actual monetary instruments in an attempt to pay his federal income taxes, filed fraudulent UCC-1 Financing Statements in an attempt to create a liability that took priority over an IRS claim, and by having trusts hold his assets in an attempt to conceal his assets from the IRS, the indictment alleges.
       "All of us must perform our civic responsibility of paying our lawful taxes," said U.S. Attorney McGregor J. Scott. "This case should serve as a stark reminder of the potential consequences of not doing so."
• Tax Fraud Promoter Gets More Than Five Years in Prison
       Tax fraud promoter Paul D. Harris was sentenced in U.S. District Court in Denver to five and a half years in prison, followed by three years of supervised release, in connection with his role in an organization called Tower Executive Resources. Harris was also ordered to pay more than $10,000 toward the costs of prosecution.
       On April 27, 2005, a federal jury convicted Harris, of Elizabeth, Colo., and co-defendant Lester R. Retherford, of Canon City, Colo., of conspiring to defraud the United States and willfully aiding and assisting in the preparation of a fraudulent income tax return. Retherford was sentenced to 48 months in prison and three years of supervised release.
       "People who promote and facilitate tax evasion can expect to be prosecuted, convicted, and sentenced to substantial time in federal prison," said U.S. Attorney Eileen J. O'Connor.
       Wealthy taxpayers paid Harris and Retherford to set up shell corporations that were used to conceal nearly $9 million in taxable income. The clients transferred millions of dollars to secret bank accounts in the Turks and Caicos Islands and other foreign countries in order to conceal income and assets from the IRS. Federal officials have also indicted the pair's clients.

THE ANSWER SPOT

• I don't mind paying the taxes, but don't want to pay the penalties and interest. Can we get rid of that?
  Yes! Under certain circumstances, the IRS will abate penalties and the interest on the penalties.  To do this, you must establish "reasonable cause."  We can help determine if you qualify.
   

ASK THE EXPERTS

• I've heard the pitches. I've even seen the street-corner signs advertising services that are said to eliminate tax debt. I've heard it and I've seen it, and still I don't believe it. Due to a number of bad decisions, I owe roughly $70,000 in back taxes. I'd like to believe the advertisements are true, but I'm skeptic. What's the real deal?
       Sure, you can't believe everything you read on a street-corner sign. But you can believe this: It's possible to reduce your tax debt by pennies on the dollar! The claims are legitimate and true. You just need to find yourself a qualified tax professional.
       It's actually very simple. Here's how it works: If you are a taxpayer who has amassed a substantial amount of tax debt that you absolutely cannot pay off - and you would be shocked to learn how many of you are out there! - then you may qualify for what's known as the Offer in Compromise program. Because the IRS now realizes that it's much more effective to be accommodating with tax debtors than to, say, chase them down and beat down their door, the IRS uses the Offer in Compromise program as a way to help taxpayers come back into compliance.
       First, you'll want to consult a qualified tax professional, who will review your previous tax returns to establish the exact amount of your tax debt. Once this is establish, you and your qualified tax professional will meet with an IRS agent to discuss an amount that would settle your tax debt once and for all. Oftentimes, this amounts to pennies on the dollar! No joke. It's absolutely true.
       For taxpayers who are having trouble satisfying their tax debt, they have many options available. If you do not qualify for the Offer in Compromise program, you may still be eligible for other programs, including an Installment Agreement that allows you to pay off your tax debt over time.
       I can handle the IRS and tax problems such as yours. I'm an IRS Problem Solver. For a free, no-risk consultation, call my office at 1-877-590-2500.

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