Tax Crimes

BP Deepwater Horizon Case Proceeds After Tax Court Reviews IRS Handling of Whistleblower’s Claim

On behalf of Frost Law posted in on April 16, 2020.

Eli Noff, Esq., PartnerMary F. Lundstedt, Esq., Associate A recent IRS whistleblower case clarifies when the Tax Court is authorized to review the IRS Whistleblower Office (WBO)’s actions or inactions when it receives a whistleblower’s complaint. In Lacey v. Commissioner,1 taxpayer submitted a whistleblower claim alleging that oil company BP improperly deducted approximately $12.9 billion […]

Tags: Articles, Tax Crimes

Man Sentenced to Prison For Failing to Remit Payroll Taxes to IRS

On behalf of Frost Law posted in on February 20, 2020.

Our legal system expects a lot out of small business owners. This system expects these entrepreneurs to follow the rules of their chosen business structure while also making sure they meet all required tax obligations. This is on top of balancing their business plan and making sure they are successful within their market. A failure […]

Tags: Blog, Tax Crimes

Florida Attorney General Issues Tips to Help Floridians Avoid Tax Identity Theft Scams

On behalf of Frost Law posted in on February 13, 2020.

On February 3, 2020, Florida Attorney General Ashely Moody issued a video consumer alert warning taxpayers to “Watch Out for Tax Identity Theft Scams” and providing tips for Floridians to help them avoid becoming victims of scammers.1 Significantly, the Attorney General noted that a common ploy involves the fraudulent filing of a person’s tax return […]

Tags: Blog, Tax Crimes

Don’t Fall Victim to “Ghost” Tax Return Preparers!

On behalf of Frost Law posted in on January 30, 2020.

An IRS news release, issued January 22, 2020, warned taxpayers not to fall victim to “ghost” tax return preparers this tax filing season.[1] The IRS reminded taxpayers that a paid tax return preparer is required by law to have a valid Preparer Tax Identification Number (PTIN). The IRS clarified that a paid preparer must include […]

Tags: Blog, Tax Crimes, Tax Topics

What are the Odds of Conviction if Charged with a Tax Crime?

On behalf of Frost Law posted in on December 24, 2019.

According to a recent report by the Internal Revenue Service (IRS),[1]those charged with a tax crime face a high rate of conviction. The agency recently reported it brought 91.2% of all taxpayers charged with a tax crime in 2019 to conviction. Of these convictions, 79% resulted in imprisonment with an average of 43 months to […]

Tags: Tax Crimes, Blog

Town Justice Pleads Guilty to Tax Evasion

On behalf of Frost Law posted in on December 12, 2019.

On December 6, 2019, the United States Attorney’s Office in the Southern District of New York issued a press release announcing that a Lewisboro, New York town justice pled guilty to tax evasion in federal court.1The new release reminds taxpayers all over the country that the authorities are diligently pursuing tax evaders in an effort […]

Tags: Blog, Tax Crimes, Tax Evasion

FBI Investigating Alleged Payroll Fraud Leaving Employees Without Wages and Unpaid Tax Withholding

On behalf of Frost Law posted in on October 1, 2019.

Various news outlets are reporting an ongoing FBI investigation of alleged payroll fraud by a New York-based payroll services provider, MyPayrollHR, that abruptly shut down in upstate New York earlier this month. Thousands of employees’ accounts have been drained and up to $35 million dollars, if $9 million of unpaid tax withholding is included, has […]

Tags: Blog, Tax Crimes

When does a Tax Crime Equal Prison Time?

On behalf of Frost Law posted in on September 29, 2019.

It may seem like an innocuous crime that would come with, at most, a financial penalty. Unfortunately, this is not always the case. The Internal Revenue Service (IRS) does not take lightly to information a tax payer may be committing tax crimes. When are tax crimes serious? One key distinction: Negligence vs Tax Fraud. Negligence […]

Tags: Blog, IRS, Tax Crimes, Tax Evasion

Does Willful v. Non-Willful Matter When It Comes to Tax Crimes?

On behalf of Frost Law posted in on September 3, 2019.

Getting accused of a tax crime is a serious matter. The allegations can range from a relatively minor discrepancy that results in a financial penalty to major errors that lead to prison time. One of the key factors that will determine the severity of the allegations is whether the government claims the crime was willful. […]

Tags: Blog, Tax Crimes, Tax Evasion

Judge Sentences Family to Jail After Inheriting Hidden Account

On behalf of Frost Law posted in on July 23, 2019.

Going through an inheritance after a loved one dies is a difficult and emotional time. In addition to the emotional turmoil, those who are left behind must also deal with the logistics that come with the estate. In some cases, these logistics can come with unexpected legal questions. Difficult legal question: Report or follow in […]

Tags: Blog, Tax Crimes