A Baltimore man has been sentenced to 25 months in prison for his role in a plot to file fraudulent tax returns on behalf of state prison inmates.
The U.S. Attorney's office says 66-year-old Giacumo Marzano was sentenced Tuesday for his guilty plea to charges of conspiracy to defraud the United States and aggravated identity theft. He was also ordered to pay $200,000 restitution.
Marzano was one of three people who pleaded guilty in the scheme.
Federal authorities say he gave blank federal tax returns to prison inmates, who then returned the completed forms with false information. Marzano submitted the returns to the IRS and received the fraudulent tax refund checks.
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Monday, December 1, 2008
Monday, November 24, 2008
Berryville Man Busted In Alternative Banking Scheme
A Berryville man pleaded guilty to operating a $100 million alternative banking system that allowed members to shield their financial transactions from the Internal Revenue Service.
Wayne A. Hicks, 52, in a negotiated plea agreement with federal prosecutors, pleaded guilty in Fayetteville to conspiracy to defraud the federal government of income taxes.
According to the U.S. Attorney's Office, the alternative banking system, known as ICIS or MYICIS, was created in 2002 for a group called Americans for Lawful Financial Independence and Information. ICIS is an acronym for several names, including Integral Currency Interchange System, Interactive Currency Interface System or Internet Check Issuance System.
The members were involved in the so-called Patriot Movement and were generally anti-government and did not pay federal taxes. Some schemed to overthrow the federal government, according to prosecutors.
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Wayne A. Hicks, 52, in a negotiated plea agreement with federal prosecutors, pleaded guilty in Fayetteville to conspiracy to defraud the federal government of income taxes.
According to the U.S. Attorney's Office, the alternative banking system, known as ICIS or MYICIS, was created in 2002 for a group called Americans for Lawful Financial Independence and Information. ICIS is an acronym for several names, including Integral Currency Interchange System, Interactive Currency Interface System or Internet Check Issuance System.
The members were involved in the so-called Patriot Movement and were generally anti-government and did not pay federal taxes. Some schemed to overthrow the federal government, according to prosecutors.
Source
Monday, November 17, 2008
For Medtronic, the IRS comes calling -- late
When Medtronic Inc. arranged to trim its tax bill by licensing intellectual property to a Swiss subsidiary, Bill Clinton was campaigning for his second term as president and "Braveheart" was playing in movie theaters.
Roughly 12 years later, the Internal Revenue Service informed the Minneapolis-based medical-technology maker hat the arrangement was improper -- and that it owes an additional $53.6 million in taxes as a result. Medtronic disputed the claim and started proceedings in U.S. Tax Court, where it has requested a trial in Chicago.
Medtronic's case highlights the tension between companies seeking to deliver increasing profits to shareholders using so-called "transfer pricing," and regulators struggling to rein in a practice blamed for cheating the government of badly needed revenue.
U.S. companies regularly use transfer pricing to reduce their tax burden by shifting intellectual property abroad, in order to avoid relatively high corporate tax rate in this country. As long as the companies license the intellectual property to a foreign subsidiary at a reasonable price, they're likely to pass muster.
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Roughly 12 years later, the Internal Revenue Service informed the Minneapolis-based medical-technology maker hat the arrangement was improper -- and that it owes an additional $53.6 million in taxes as a result. Medtronic disputed the claim and started proceedings in U.S. Tax Court, where it has requested a trial in Chicago.
Medtronic's case highlights the tension between companies seeking to deliver increasing profits to shareholders using so-called "transfer pricing," and regulators struggling to rein in a practice blamed for cheating the government of badly needed revenue.
U.S. companies regularly use transfer pricing to reduce their tax burden by shifting intellectual property abroad, in order to avoid relatively high corporate tax rate in this country. As long as the companies license the intellectual property to a foreign subsidiary at a reasonable price, they're likely to pass muster.
Source
Monday, November 10, 2008
Taxpayer From West Virginia Hires Roni Deutch's Law Firm After Bad Experiences With A Competitor
The Flohrs of Falling Waters, WV found themselves behind on their taxes, and because of excess IRS penalties and fees their total tax liability had added up to an unrealistic amount. Between huge payments to the IRS, and a skyrocketing cost of living, the Flohrs were unable to meet basic living expenses. They had been working
with another tax settlement company for months before calling Ms. Deutch's office and while the other company was able to reduce the total liability, the settlement proposed was not one that Mr. Flohr could afford.
Shortly after contacting Ms. Deutch's office Mr. Flohr decided to retain the law firm for placement on the IRS' Currently Not Collectible (CNC) status, which protects a taxpayer from IRS collections. It demonstrates to the IRS that a taxpayer cannot afford a monthly payment to the IRS, let alone to full pay their back tax liability. This is done by proving to the IRS that a taxpayer's monthly living expenses exceeds his or her gross monthly income and that the taxpayer does not have any valuable assets that could be easily liquidated to pay off the IRS tax debt.
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with another tax settlement company for months before calling Ms. Deutch's office and while the other company was able to reduce the total liability, the settlement proposed was not one that Mr. Flohr could afford.
Shortly after contacting Ms. Deutch's office Mr. Flohr decided to retain the law firm for placement on the IRS' Currently Not Collectible (CNC) status, which protects a taxpayer from IRS collections. It demonstrates to the IRS that a taxpayer cannot afford a monthly payment to the IRS, let alone to full pay their back tax liability. This is done by proving to the IRS that a taxpayer's monthly living expenses exceeds his or her gross monthly income and that the taxpayer does not have any valuable assets that could be easily liquidated to pay off the IRS tax debt.
Source
Monday, November 3, 2008
Tax attorney pleads guilty to failure to file
Prominent Honolulu tax attorney and accountant Michael "Mickey" Rosenthal pleaded guilty yesterday to failure to file a federal income tax return for the year 2000.
The guilty plea to the misdemeanor offense was part of an agreement Rosenthal and his attorney reached with the U.S. attorney's office.
The government agreed not to pursue claims that Rosenthal also failed to file personal tax returns from 2001 through 2005.
He agreed to pay more than $280,000 in back taxes owed.
Federal Magistrate Judge Leslie Kobayashi sentenced Rosenthal to one year of probation, including a six-month stay in a halfway house.
Assistant U.S. attorney Leslie Osborne cited the defendant's education and background in asking Kobayashi to send Rosenthal to jail for up to a year.
Source
The guilty plea to the misdemeanor offense was part of an agreement Rosenthal and his attorney reached with the U.S. attorney's office.
The government agreed not to pursue claims that Rosenthal also failed to file personal tax returns from 2001 through 2005.
He agreed to pay more than $280,000 in back taxes owed.
Federal Magistrate Judge Leslie Kobayashi sentenced Rosenthal to one year of probation, including a six-month stay in a halfway house.
Assistant U.S. attorney Leslie Osborne cited the defendant's education and background in asking Kobayashi to send Rosenthal to jail for up to a year.
Source
Monday, October 27, 2008
Detroit loan officer jailed for defrauding IRS
A Detroit loan officer has been sentenced to 15 months in prison after pleading guilty to helping others file false Internal Revenue Service claims.
The U.S. Attorney's office in Detroit says 31-year-old Bobby "Sweets" Coward Jr. gave false W-2 forms to taxpayers and conspired with them in 2003 to defraud the IRS of more than $113,000.
Court records show the conspiracy involved federal income tax returns claiming false, fictitious and fraudulent income, tax with holdings and refunds from the IRS.
Prosecutors say very few of the refunds were paid by the IRS.
Coward also will serve two years of supervised release when his sentence ends.
Source
The U.S. Attorney's office in Detroit says 31-year-old Bobby "Sweets" Coward Jr. gave false W-2 forms to taxpayers and conspired with them in 2003 to defraud the IRS of more than $113,000.
Court records show the conspiracy involved federal income tax returns claiming false, fictitious and fraudulent income, tax with holdings and refunds from the IRS.
Prosecutors say very few of the refunds were paid by the IRS.
Coward also will serve two years of supervised release when his sentence ends.
Source
Monday, October 20, 2008
Ex-attorney indicted for tax fraud
A former partner in a Willows law firm has been indicted by a federal grand jury on charges of tax fraud and evasion.The indictment alleges that Orion Douglas Memmott, 68, submitted false financial statements to the IRS in June 2005. The statements were reportedly in connection with Memmott's attempt to lower his federal tax liability, plus penalties and interest, for the years 1993 through 1999.
The liability was calculated at $656,655.In submitting the statements, Memmott allegedly omitted real property valued at $260,000, and business banking accounts he owned and controlled containing $112,772.He also reportedly failed to report income from diverted investor funds of $116,570.The indictment also alleges that, between 1995 and 2006, Memmott willfully attempted to evade payment of a large part of his federal income tax liability by placing property in the names of others.
If convicted on all charges, Memmott could face several years in prison and a fine of up to $500,000.Several Willows residents recall that Memmott specialized in tax and probate law. He moved from Willows approximately 10 years ago.
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The liability was calculated at $656,655.In submitting the statements, Memmott allegedly omitted real property valued at $260,000, and business banking accounts he owned and controlled containing $112,772.He also reportedly failed to report income from diverted investor funds of $116,570.The indictment also alleges that, between 1995 and 2006, Memmott willfully attempted to evade payment of a large part of his federal income tax liability by placing property in the names of others.
If convicted on all charges, Memmott could face several years in prison and a fine of up to $500,000.Several Willows residents recall that Memmott specialized in tax and probate law. He moved from Willows approximately 10 years ago.
Source
Monday, October 13, 2008
Politics From Pulpit Will Deliver Challenge to IRS
The Alliance Defense Fund, of Scottsdale, Ariz., hopes that at least one sermon will prod the Internal Revenue Service to take action, sparking a court fight over a law that bars nonprofits from partisan political activity. Alliance and several ministers taking part in the protest insist that the law is unconstitutional and believe they would prevail in a court battle.
"As a pastor, I have the right to speak biblical truth without being punished for it," said the Rev. Jody Hice, pastor of Bethlehem First Baptist Church in Bethlehem, Ga., who says he will tell his congregation he backs Sen. John McCain for president. "The IRS does not have the role of censoring speech from the pulpit."
Some experts say the churches are misguided, and their nonprofit status can be lawfully regulated. "Congress has created a provision" to exempt churches from taxes, "and that provision has restrictions," says Donald Tobin, associate law-school dean at Ohio State University and a former Justice Department attorney. Churches "are obligated to follow them if they want the benefit."
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"As a pastor, I have the right to speak biblical truth without being punished for it," said the Rev. Jody Hice, pastor of Bethlehem First Baptist Church in Bethlehem, Ga., who says he will tell his congregation he backs Sen. John McCain for president. "The IRS does not have the role of censoring speech from the pulpit."
Some experts say the churches are misguided, and their nonprofit status can be lawfully regulated. "Congress has created a provision" to exempt churches from taxes, "and that provision has restrictions," says Donald Tobin, associate law-school dean at Ohio State University and a former Justice Department attorney. Churches "are obligated to follow them if they want the benefit."
Source
Monday, October 6, 2008
Mirabilis chief Amodeo pleads guilty in $181M tax fraud scheme
Frank Amodeo, the former leader of Mirabilis Ventures Inc., pleaded guilty Tuesday to charges stemming from what prosecutors called a $181 million payroll tax fraud that could’ve landed Amodeo in prison for the rest of his life.
Instead, Amodeo admitted to conspiracy to commit wire fraud, obstruction of an agency proceeding, impeding the Internal Revenue Service in the assessment and collection of taxes, failure to remit payroll taxes, and obstruction of an agency proceeding. He could still face up to 25 years imprisonment, a $1.25 million fine, and three years supervised release, according to U.S. Attorney Robert E. O’Neill’s office.
Amodeo was a one-time player in the Trump Tower Tampa project who had reportedly purchased the assets of that 52-story tower project along with a second related project in Clearwater. Frank Dagostino, the head of the one-time Trump Tower Tampa builder SimDag-RoBEL, told the Tampa Bay Business Journal last October that while there was a handshake deal for Mirabilis to purchase the project, it was a deal that was never consummated.
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Instead, Amodeo admitted to conspiracy to commit wire fraud, obstruction of an agency proceeding, impeding the Internal Revenue Service in the assessment and collection of taxes, failure to remit payroll taxes, and obstruction of an agency proceeding. He could still face up to 25 years imprisonment, a $1.25 million fine, and three years supervised release, according to U.S. Attorney Robert E. O’Neill’s office.
Amodeo was a one-time player in the Trump Tower Tampa project who had reportedly purchased the assets of that 52-story tower project along with a second related project in Clearwater. Frank Dagostino, the head of the one-time Trump Tower Tampa builder SimDag-RoBEL, told the Tampa Bay Business Journal last October that while there was a handshake deal for Mirabilis to purchase the project, it was a deal that was never consummated.
Source
Monday, September 29, 2008
Pastors plan to defy IRS ban on political speech
Setting the stage for a collision of religion and politics, Christian ministers from California and 21 other states will use their pulpits Sunday to deliver political sermons or endorse presidential candidates -- defying a federal ban on campaigning by nonprofit groups.
The pastors' advocacy could violate the Internal Revenue Service's rules against political speech with the purpose of triggering IRS investigations.That would allow their patron, the conservative legal group Alliance Defense Fund, to challenge the IRS' rules, a risky strategy that one defense fund attorney acknowledges could cost the churches their tax-exempt status. Congress made it illegal in 1954 for tax-exempt groups to publicly support or oppose political candidates.
"I'm going to talk about the un-biblical stands that Barack Obama takes. Nobody who follows the Bible can vote for him," said the Rev. Wiley S. Drake of First Southern Baptist Church of Buena Park. "We may not be politically correct, but we are going to be biblically correct. We are going to vote for those who follow the Bible."
Source
The pastors' advocacy could violate the Internal Revenue Service's rules against political speech with the purpose of triggering IRS investigations.That would allow their patron, the conservative legal group Alliance Defense Fund, to challenge the IRS' rules, a risky strategy that one defense fund attorney acknowledges could cost the churches their tax-exempt status. Congress made it illegal in 1954 for tax-exempt groups to publicly support or oppose political candidates.
"I'm going to talk about the un-biblical stands that Barack Obama takes. Nobody who follows the Bible can vote for him," said the Rev. Wiley S. Drake of First Southern Baptist Church of Buena Park. "We may not be politically correct, but we are going to be biblically correct. We are going to vote for those who follow the Bible."
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