by Fresh Start Tax | Dec 21, 2012 | Tax Help
Tax Fraud – Don’t be like Fat Joe
Let Former IRS Agents save you the time and worry of IRS tax problems 1-866-700-1040.
Tax Fraud does not pay. Just ask Fat Joe
The rap artist “Fat Joe pleaded guilty to failing to pay taxes on nearly $3 million in income he earned over two years for performances and music royalties. Joe, what were you and your advisers thinking dude.
Joe is a platinum-selling artist whose real name is Joseph Cartagena.
He was once a Billboard chart topper with hits like the duet “What’s Luv” with the R&B singer Ashanti.
Joe Fat Cartagena entered the plea in federal court in Newark because some of the companies he earned money from are incorporated in New Jersey so the tax venue who be right in the Garden State.
The 42-year-old Miami Beach, Fla. resident entered pleas to two counts covering years 2007 and 2008.
His federal sentencing will take into consideration the government’s initial allegation that he failed to pay income taxes for years 2007 through 2010. Federal prosecutors said the total tax loss to the government for those four years was $718,038. Yes Fat Joe was a Fat and east target.
In court, Cartagena looked fit and considerably slimmer than the former size that had earned him his rapper nickname. ” Fat Joe “.
He has been very public about his efforts to shed weight after fellow rap stars died from obesity-related issues and was recently in Newark to speak to schoolchildren about health and fitness. Joe was really trying to make a difference.
When asked by U.S. Magistrate Cathy Waldorf if he understood the charges he was facing, he replied, “I super-understand it.” Joe took his medicine well.
Cartagena’s lawyer, Jeffrey Lichtman, said outside federal court that his client “had already taken steps to resolve this situation” before he had been charged.
He said” the rapper hoped to pay back the taxes by the time of his sentencing April 3.”This would have helped reduce his time in Club Fed.
Cartagena owned the Somerville-based Terror Squad Production Inc. and Miramar Music Touring Inc., according to court papers.
He also earned income from FJTS Corp., during the time in question.
Waldorf the judge set bail at $250,000 and released Cartagena until his sentencing. He could face up to two years in prison and a fine of up to $200,000, plus penalties from the Internal Revenue Service.
Joe now will be singing the ” jail house blues ” and will have plenty time in Club Fed to write.
Kudos to Joe for the weight loss and helping the kids, good luck
Some of the IRS Penalty Structures
1.Timely Filers Who Do Not Pay Total Due: one-half of 1% of the tax owed for each month until tax is paid (25% maximum),
2. Late Filers: 5 percent of the tax owed for each month late (up to 25%); increased penalties for fraud,
3.Combined Penalties: if both of the above apply: the failure-to-file penalty minus the failure-to-pay penalty,the FTP max’s out at 24%.
4. Frivolous Tax Submissions: $5,000 penalty
5. Mistakes: 20% of the underpayment
6. Civil Fraud: 75% of the underpayment
7. Criminal Penalties: Civil fraud penalty 75% plus substantial fines and jail time
8. Interest: for all late or under-paying filers, interest will compound daily on their unpaid taxes at the federal short term rate plus 3%
9. These are just some of the applicable penalties for IRS violations.
Tax Fraud – Don’t be like Fat Joe
by admin | Mar 27, 2012 | IRS Penalties, IRS Tax Advice, IRS Tax Problem, Tax Help
IRS Penalty Tax Relief by Former IRS Agents and Managers – Call us today for details an immediate IRS tax representation.
Get the tax help and get rid of your tax problem today.
Tax Relief to Farmers Affected by MF Global Bankruptcy
The Internal Revenue Service announced today that it will provide penalty relief to farmers who incur estimated tax penalties because they did not timely receive Forms 1099 from MF Global or its court appointed trustee, and were unable to file their 2011 calendar year tax return by March 1, 2012.
The IRS also today provided the affected farmers with instructions on how to apply for this penalty relief. you can call our offices for details and representation requirements.
The Farming Industry
Usually farmers can avoid an estimated tax penalty if they file their returns and pay the full amount of tax shown on their return by March 1, 2012.
An individual is a farmer for these purposes if two-thirds of the individual’s total gross income for the taxable year or the preceding taxable year is from farming. This rule and the relief being provided also apply for fishermen.
MF Global filed for bankruptcy on Oct. 31, 2011, after revealing that hundreds of millions of dollars in customer money was missing.
While the court appointed trustees are working to untangle MF Global’s financial records, the IRS understands that the magnitude of the records and the associated untangling delayed the issuance of Forms 1099 in a timely manner.
Many former customers of MF Global did not receive their Forms 1099 by March 1, 2012 and the penalties are racking up.
While the IRS has been advised that former customers have recently received their 1099s, the delay in mailing the Forms 1099 may have affected the ability of many farmers to file their 2011 calendar year return by March 1, 2012.
If a taxpayer has an underpayment of estimated tax, all or part of the penalty for the underpayment may be waived if the IRS determines that the underpayment was due to a casualty, disaster or other unusual circumstance and it would be inequitable to impose the penalty.
To request a waiver of the estimated tax penalty, complete Form 2210-F, Underpayment of Estimated Tax by Farmers and Fisherman.
As stated in the instructions to Form 2210-F, a short statement should be attached to the form stating that you received a late 1099 from MF Global. At the top of your Form 2210-F, write “MF Global”. Taxpayers should be aware that the Form 2210-F and accompanying Form 1040 cannot be submitted electronically. In the case of farmers who have filed their tax returns and an estimated tax penalty is assessed, please contact the IRS, identify this relief and the penalty will be abated.
While this situation could possibly racking up thousands of dollars in penalties, let us get you tax relief today.
Call Fresh Start Tax, 1-866-700-1040. Speak directly to a tax expert.
We offer a full range of IRS tax representation services.
by steve | Mar 2, 2012 | IRS Penalties, IRS Tax Problem
IRS Penalties – Get Rid of them – Receive Bad Advice – IRS will remove Penalties – Former IRS – Tax Experts
The following deals with the abatement of IRS penalties and interest due to receiving bad advice.
There are several methods of getting rid of IRS penalties, call us today to find out more.
If you have been a victim of bad advice, this will help you rid yourself of IRS penalties
From the IRS IRM 20.1.1.3.3.4 (12-11-2009)
Bad Tax Advice
This section discusses the three basic types of advice that may qualify for statutory, regulatory, or administrative penalty relief from the Internal Revenue Service:
1. Written advice provided by IRS,
2. Oral advice provided by IRS,
3. Advice provided by a tax professional,
Information the IRS will consider when evaluating your request for abatement or non-assertion of a penalty due to reliance on advice includes, but is not limited for the following reasons:
1. Was the advice in response to a specific request and was the advice received related to the facts contained in that request? Can that be proved?
2. Did the taxpayer reasonably rely on the advice?
3. Did you pay for that advice?
4. Was the person a professional tax preparer?
5. Is this a one time event?
In the following instances address some situations where penalty relief may not be appropriate even though the taxpayer relied on written advice from the IRS regarding an item on a filed return:
1. The taxpayer did not reasonably rely on the advice regarding an item included on a return if the advice was received after the date the return was filed,
2. A taxpayer may be considered to have reasonably relied on advice received after the return was filed if they then filed an amended return that conformed with such written advice.
3. A taxpayer may not be considered to have reasonably relied on written advice unrelated to an item included on a return, such as advice on the payment of estimated taxes, if the advice is received after the estimated tax payment was due.
4. Did the taxpayer, or their authorized representative, provide the IRS or the tax professional with adequate and accurate information? The taxpayer is entitled to penalty relief for the period during which they relied on the advice.
The period continues until the taxpayer is placed on notice that the advice is no longer correct or no longer represents the Service’s position.
5. The taxpayer is placed on notice as the result of any of the following events that present a contrary position and occur after the issuance of the written advice:
6. Written correspondence from the IRS that its advice is no longer correct or no longer represents the IRS’s position,
7. Enactment of tax legislation or ratification of a tax treaty,
8. A U.S. Supreme Court decision,
9. The issuance of temporary or final regulations,
10. The publication of a IRS revenue ruling, IRS revenue procedure, or other statement in the Internal Revenue Bulletin.
Tax Form 843, Claim for Refund and Request for Abatement, is required to be filed to request penalty abatement based on erroneous written advice by the IRS.
However, if Form 843 is not filed and the information provided demonstrates that abatement of the penalty is warranted, the penalty should be abated, whether or not a Form 843 is provided.
The information required to be provided includes:
1. The taxpayer’s written request for advice,
2. The erroneous written advice furnished by the Service to the taxpayer and relied on by the taxpayer, and
3. The report (if any) of tax adjustments that identifies the penalty or addition to tax and the item relating to the erroneous written advice.
Getting penalties and interest abated is a specialty. As Former IRS agents we know the exact requirements to give these cases there very best shot.
These cases require documentation and a great deal of expertise.
