None of us enjoy receiving letters from the IRS. Some might argue and claim a refund is a nice thing to receive from the IRS but those checks come from the U.S. Treasury. While often a letter from the IRS signals an audit or notice saying that you owe more money, former HP board member […]
When Public Officials Don’t Pay Taxes – IRS Whistleblower Post
by Brian Mahany Remember the Nannygate scandal? The scandal originated in 1993 when President Bill Clinton nominated Zoe Baird to be the United States Attorney General. That nomination didn’t last long; reporters quickly learned that Baird and her husband had hired two illegal immigrants from Peru to care for their child. They also didn’t withhold […]
Former CPA Gets 3.5 Years in Prison, $100 Million Restitution For Tax Evasion Role
by Brian Mahany A former CPA and banker at Deutsche Bank AG was sentenced to 3-1/5 years and ordered to pay $115,700,000 for his role in helping clients evade taxes. David Parse will have to serve about 3 years before eligible for early release. He was convicted of mail fraud and obstruction charges. Prosecutors say […]
Top Tax Scams – Are You On The IRS' Radar?
by Brian Mahany With just 2 weeks before taxes are due, the IRS has cranked up their publicity machine. Indictments, public service announcements and lots of information. One of the more interesting stories is the IRS “dirty dozen” tax scams. While identity theft occupies the number 1 spot again, several “scams” warrant special mention. Near […]
Captive Insurance Companies & Diversified Insurance Company
by Brian Mahany Captive Insurance Companies are certainly on the IRS’ radar screen these days. Yesterday, a colleague forwarded me a copy of a summons from the IRS to a New York attorney seeking information on the lawyer’s clients who had done business with Diversified Insurance Company. While getting a summons from the IRS is […]
IRS Warns of Payroll Processing Fraud
by Brian Mahany Just 2 months ago (July 5th) we warned of various payroll processing frauds that prey on small businesses. The IRS must have been listening since they too just issued a warning. Because these frauds can bankrupt a business, the warnings bear repeating. Many small and medium size businesses outsource their payroll processing […]
Islamic Banks Next Target of IRS? (IRS Whistleblower Rewards Post)
[Arabis translation below – الترجمة العربية أدناه] Beginning in 2007, the IRS began cracking down on Americans and other U.S. taxpayers with unreported foreign accounts. Owning an offshore account isn’t illegal but failing to report the account is. First, Swiss banks began to be the targets. The government accused UBS and several other Swiss banks […]
Uncle Sam Goes After Another Welfare Benefit Plan Scheme
by Brian Mahany The IRS and U.S. Department Justice Department have a special relationship with welfare benefit plan promoters and the brokers and insurance agents that sell them. They hate them. For over a decade, the IRS has declared that many welfare benefit plans are fraudulent and abusive tax shelters. Many of the promoters are […]
IRS Makes Enron Whistleblower a Millionaire – Are You Next?
Long before Enron became a household world, an anonymous whistleblower came forward and tipped off authoritiesThe Internal Revenue Service paid an anonymous whistleblower a $1.1 million dollar reward for information about tax fraud at Enron. The award was paid out under the old IRS whistleblower program and represents the then maximum reward. For the same […]
Operation Brass Tax – IRS Charges 26 Tax Preparers
It’s January and tax season is in full swing. The IRS says that because of recent law changes, it can’t start processing certain returns until well into February. That fact has further elevated the stress levels of CPA’s and preparers. With any luck, however, by mid April all can head to Cancun, soak up the […]