Taxing Times

Taxing Times
VOL.XLVI
TAX RETURN PREPARER SENT
TO PRISON FOR 18 MONTHS
A Texas man was sentenced to 18 months in
federal prison and ordered to pay $111,676
restitution to the federal government for
his scheme to prepare and file fraudulent
income tax returns.
According to court records, Sampson Delton Cotten, 57, of San Antonio, Texas, admitted that he prepared and filed a false tax
return in which he claimed taxpayer had
incurred a business loss of $43,100 when
there were in fact no losses at all.
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Our services that we
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can provide you with:
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Currently Not Collectable
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Taxing Times
VOL.XLVI
“IRS special agents use their investigative
and financial expertise to detect and hold
accountable abusive tax return preparers,”
IRS Special Agent in Charge William Cotter said in a statement.
Read about taxpayers with IRS Problems and learn helpful tips on how to end them.
Member of:
F R A N S K OV I A K & C O M PA N Y, P C
Mike Franskoviak
President, CPA
Toll Free: 1-855-TaxFixx
P: (248) 524-5240
F: (248) 524-5246
E: mike@franskoviakcpa.com
667 E. Big Beaver Rd. Ste 107
Troy, Michigan 48083
www.FranskoviakCPA.com
IN THIS ISSUE:
pg.
1 pg.
Franskoviak & Company, P.C.
IRS and State Tax Resolution Experts
667 E. Big Beaver Rd. Ste 107
Troy, Michigan 48083
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FRANSKOVIAK & COMPANY, PC
Taxing Times
VOL.XLVI
Read about taxpayers with IRS Problems and learn helpful tips on how to end them.
Constantly thinking about how much money you owe the IRS? Every day, I work with clients to solve tax problems they believe are
unsolvable. I’m a member of the American Society of Tax Problem Solvers, and I am part of the rescue squad for troubled taxpayers.
If you’re ready to be rescued, call me today to schedule a free consultation.
- Mike Franskoviak 1-855-TaxFixx
A ‘Real Housewife’ Owes
$212,000 in Unpaid
Federal Taxes
............................................
Former IRS Employee
Faces Up to 10 Years
.............................................
pg.
Vt. Woman Guilty of Fraud,
Tax Charge
2
............................................
pg.
Woman Gets 41 Months
for Not Paying Taxes
2
pg.
3
..........................................
Man Gets 66 Months for
Tax Crimes
A ‘REAL HOUSEWIFE’
OWES $212,000 IN
UNPAID FEDERAL TAXES
The actress best known as ‘Tootie’ is one of
several reality show stars with tax problems.
Kim Fields, the actress best known for
her role as Tootie Ramsey on the NBC
sitcom The Facts of Life, is the newest
cast member of the Bravo reality show
The Real Housewives of Atlanta.
She’s also in debt to the Internal Revenue Service. According to an October
2014 tax lien, Fields, 46, did not pay
taxes in 2011, 2012 and 2013. She owes
a total of $212,421.02.
The tax debt actually makes her a great
fit for the Bravo reality show, which focuses on the personal and professional
lives of several Atlanta women.
Two other cast members owe federal
taxes. Sheree Whitfield, a fashion designer, owes $100,000 in back taxes.
Fellow cast member Cynthia Bailey and
her husband Peter Thomas also landed
in tax recent tax trouble.
FORMER IRS EMPLOYEE
FACES UP TO 10 YEARS
A former IRS employee and her husband pleaded guilty to defrauding the
government of more than $160,000 in
false tax returns.
es, to file false 2010 federal income tax
returns.
The couple had
...........................................
pg.
4
Tax Return Preparer Sent
to Prison for 18 Months
According to court records, Lillian
Madyun, a former IRS employee, and
her husband, Ahmed Grant, used their
tax preparation business, Superfast Tax-
F R A N S K OV I A K & C O M PA N Y, P C
PAGE 1
VOL.XLVI
several locations throughout Memphis,
Tenn. The couple would review all tax
filings before submitting false claims to
the IRS. They utilized an electronic filing identification number to process and
file the tax returns.
They face up to 10 years in prison and
fines of up to $250,000.
Taxing Times
VOL.XLVI
ARE YOUR TAX PROBLEMS
KEEPING YOU AWAKE AT NIGHT?
Let’s put them to rest.
A Vermont woman pleaded guilty to
committing wire fraud and filing a false
tax return.
According to court records, Amy C.
Fletcher, 44, of Derby Line, Vt., admitted that while working for Derby Line
Ambulance from 2009 to 2012, she embezzled money from the company to pay
personal expenses. She also admitted to
filing a false 2011 tax return with the Internal Revenue Service.
Fletcher admitted engaging “in an ongoing practice of diverting funds from DLA
for personal use, paying personal credit
cards and home and car loans.” She admitted drawing more than 400 checks,
making them payable to herself and others for her benefit.
The government alleged she diverted
more than $250,000 in company money.
She did not report the income.
WOMAN GETS 41 MONTHS
FOR NOT PAYING TAXES
She withheld $3.3 million in taxes from her employees but never paid the money to the IRS.
A Washington businesswoman was
sentenced to 40 months in prison and
ordered to pay $3.3 million after being
convicted at trial of 10 counts of failing
to pay employment taxes to the IRS.
According to court records, Maria Elizabeth Townsend, 39, of Burbank, Wash.,
was the president and majority shareholder of Townsend Controls, an electrical contractor that employed more 100
people. Most of the employees were
members of the International Brotherhood of Electrical Workers.
For 16 quarters between 2005 and 2009,
Townsend withheld $3,361,246 in employment taxes from the wages of union
and non-union employees but failed to
pay over those taxes to the IRS.
Instead of paying the IRS, Townsend
paid vendors and employees, paid a
$200,000 dividend to one of her part-
ABOUT THE
OFFER IN
COMPROMISE
Did you know it’s possible to settle your
debt with the Internal Revenue Service
for less than the IRS says you owe?
For a free consultation, call 1-855-TaxFixx
VT. WOMAN
GUILTY OF
FRAUD, TAX
CHARGE
Taxing Times
ners, disbursed $300,000 toward payment of her joint personal income
tax obligations, disbursed more than
$260,000 in funds to family members,
and spent $22,000 to construct a pool
at her residence, $30,000 to purchase a
boat, $30,000 to purchase a Cadillac Escalade, and $42,982 to purchase a Jeep
Commander.
Townsend claimed she was suffering
from multiple psychiatric disorders, including bipolar disorder and obsessivecompulsive disorder that paralyzed her
when it came to being able to paying
over the payroll taxes. Townsend also
claimed the electricians were independent contractors, not employees, even
though she withheld $3.3 million in
taxes from their wages.
F R A N S K OV I A K & C O M PA N Y, P C
If you owe a substantial amount in back taxes to the government, you may
be eligible to participate in the Offer in Compromise program. This program
allows you to make an offer to the IRS that could settle your tax debt for
significantly less than you owe.
Call to learn more about this program.
1-855-TaxFixx
ABOUT THE
INSTALLMENT
AGREEMENT
Are you earning a good living but just
unable to pay your back taxes?
The Installment Agreement
may be the option.
The Installment Agreement allows taxpayers to pay their tax debt over time
by making manageable payments. The Installment Agreement can put you
back in control of your financial future.
MAN GETS 66
MONTHS FOR
TAX CRIMES
He also must pay more than
half a million in restitution.
A Wisconsin man was sentenced to 66
months in federal prison and ordered
to pay $561,515.9 in restitution for
conspiring to impede the IRS, stealing
government funds by converting tax refunds, fraudulent use of debit cards, and
aggravated identity theft.
Haroun B. Omar, 34, of Madison, Wis.,
was convicted following a five-day trial.
According to court records, Omar obtained individuals’ personal identification information, including names and
Social Security numbers, and conspired
to use the information to prepare false
federal income tax returns requesting
tax refunds in the names of the individuals. The fraudulently obtained tax
refunds were at times placed on prepaid
debit cards, which were then used by
Omar and his co-conspirators to obtain
cash and to make purchases.
During a 96-day period in late 2011,
Omar used 28 different debit cards,
each containing a tax refund based on a
false tax return, to withdraw more than
$200,000 from multiple ATMs.
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Call to learn more about this program.
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