Taxpayer was charged with tax evasion pursuant to 7201. The Court found that the statute of limitations began to run when the last element of the offense took place. The motion to dismiss was granted.
Archives August 2016
IRS Issued Summons to Try to Determine Whether Taxpayer Was Resident
Written by on in Tax Fraud Report.
Frank Gangi resided in the U.S. Virgin Islands. The IRS issued summons to investigate whether Gangi was required to pay income taxes. Taxpayer moved to quash the summons. The motion was denied.
Search Warrant for Drugs Led to Seizure of Evidence of Tax Violations
Written by on in Tax Fraud Report.
Defendants were charged with tax violations based upon evidence seized during the execution of a search warrant issued for drugs.
The United States sought to recover over $3 million of funds that were transferred at a time in which the taxpayer company owed taxes.
Taxpayer's Daughter's Received Funds from Taxpayer's which IRS sought to Recover
Written by on in Tax Fraud Report.
Children of taxpayers objected to partial summary judgment sought by the IRS relating to property transferred from the taxpayers to their children at a time when the taxpayers owed taxes.
Defendant's Right to be Present at Trial Did Not Include Jury Instruction Conferences
Written by on in Tax Fraud Report.
Taxpayer was represented by counsel at the jury charge conference. The Court found that Defendant did not need to be present.
Tax Return Preparer Found Guilty of Willfully Preparing False Tax Returns
Written by on in Tax Fraud Report.
Tax return preparer was convicted of willfully preparing false tax returns in violation of 7206. Clients not charged in the indictment were permitted to testify pursuant to rule 404(b) to establish intent.
Restitution Amount Ordered Greatly Exceeded Tax Loss Charged by Government
Written by on in Tax Fraud Report.
Taxpayer plead guilty to 371 conspiracy charge that the Government asserted involved approximately $2,000,000. However, the Court ordered restitution of $6,457,500 and overruled defendant's objection.
Court found that there was ample evidence that taxpayer conspired to impede the IRS by concealing income by using a non-profit entity and mishandling 1099 forms.
Day School Operators Cash Deposits and Expenditures Lead to Tax Fraud
Written by on in Tax Fraud Report.
Taxpayers operated a day school primarily on a cash basis: requesting at least some parents to pay tuition in cash, paying teacher salaries in cash, refusing to issue tax forms reflecting income paid to teachers, and, in some cases, encouraging teachers not to file tax returns or report income they earned from the school.
