Yearly Archives: 2022

The IRS intends to have 4,200 employees in its Criminal Investigation division by 2029, marking an increase of more than one-third from current levels and extending a post-pandemic hiring spree, the division's chief told a recent tax conference.

With the ranks of the Criminal Division (CI) now totaling about 3,100 employees, Chief Jim Lee said he expects it will take five to seven years to reach the staffing goal. He spoke July 15 at a conference sponsored by the University of San Diego School of Law and the firm RJS Law.

CI currently employs about 2,100 agents, along with 1,000 or so personnel in investigative analysis, information technology, and administrative jobs, according to Lee.

He said CI in fiscal year 2020 had about 330 personnel, which was a net gain of 140, with the following year bringing in some 350 new employees whose hiring represented a net gain of 70.

The CI chief also told the conference that his division analyzed 1,350 terabytes of data during fiscal year 2021, adding that, for perspective, 10 terabytes equals the printed collection in the Library of Congress.

In touting CI's success investigating and prosecuting fraud tied to the pandemic, Lee said the division has had a "100% conviction rate" since the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, PL 116-136) was enacted two years ago. 

Agents have identified nearly $2 billion in COVID-related fraud, netting 300 indictments in 700 cases opened, he said.

Read more at: Tax Times blog

According to the DoJ, New York couple and their adult son were sentenced to prison on July 13, 2022 for conspiring to defraud the United States and for tax evasion.

In November 2021, John Zourdos, his wife Helen Zourdos and their son Dimitrios Zourdos, all of Rome, were each convicted by a federal jury of conspiracy to defraud the United States, tax evasion and helping to file false corporate tax returns. 

U.S. District Court Judge David N. Hurd sentenced: 

According to evidence presented at trial and other court documents, John, Helen and  Dimitrios operated three Dippin Donuts coffee and donut shops with locations in Rome and New Hartford. 

From 2012 To 2017, The Defendants Concealed From
The IRS Approximately $4.5 Million In Cash Sales.

Wow - That's Allot of Dough!

During that period, they evaded more than $2 million in individual and corporate taxes by, among other things, depositing cash directly into their personal bank accounts instead of into business bank accounts, providing incomplete information to their accountants, causing their accountants to file false individual and corporate tax returns with the IRS, and funding personal expenditures directly with undeposited and unreported cash. 

They used unreported income to fund a lavish lifestyle that included multiple luxury vehicles, expensive watches, investment accounts and real estate. They also paid some employees “off the books” cash wages for overtime hours, and paid other employees entirely in “off the books” cash.

In addition to the terms of imprisonment, Judge Hurd ordered each defendant to serve three years of supervised release and to pay more than $2 million in restitution to the United States.

Read more at: Tax Times blog

According to DoJ, a former IRS employee was sentenced to 13 months in prison today following a guilty plea in March in which he admitted to filing false tax returns and providing fabricated records to the IRS in an attempt to obstruct an audit of those returns. 

According to court documents, Wayne M. Garvin, 57, currently of Columbia, South Carolina, was a long-time IRS employee who most recently worked as a Supervisory Associate Advocate with the IRS’s Taxpayer Advocate Service in Philadelphia. 

For the years 2012 through 2016, while working as an IRS employee, Garvin prepared and filed with the IRS personal income tax returns on which he claimed false deductions and expenses associated with rental properties, fictitious real estate taxes on his personal residence and fabricated charitable contributions.

Moreover, on his 2013 tax return, Garvin deducted nearly $16,000 in false expenses associated with his employment with the U.S. Army Reserves. Although Garvin was formerly a member of the U.S. Army Reserves, he did not perform any reservist duty in 2013 and was not entitled to deduct any expenses related to that employment. In total, Garvin caused a loss to the IRS of more than $74,000.

Court documents also show that after the IRS began an audit of his 2013 and 2014 tax returns, Garvin attempted to obstruct the audit by submitting fictitious documents to the IRS. For example, to justify the false deductions and expenses on his tax returns, Garvin fabricated and submitted to the IRS auditors receipts from a church, invoices from a contractor and a letter from the Department of the Army. 

After learning he was under criminal investigation, Garvin later submitted some of the same fraudulent documents to IRS-Criminal Investigation.

In addition to the term of imprisonment, Garvin was ordered to serve three years of supervised release and pay restitution to the IRS in the amount of $ $74,662.

Read more at: Tax Times blog

CPAs are a great resource for ensuring that you’re properly and accurately reporting all of your necessary tax information, as well as simplifying the filing process for you. 

However, when it comes to serious tax issues, a CPA may not be the best choice. While CPAs are knowledgeable on tax law and can be a great resource during an IRS audit, they’re not prepared to handle serious tax litigation issues. As such, the decision of who you’ll need to work with to resolve your tax issues may be unclear. These guidelines should help clear up which professional you’ll need to bring in to protect yourself from the IRS.

When Hiring a CPA is the Right Choice

Tax attorneys are also preferable as they can handle many kinds of difficult Tax Matters, including:

• IRS Tax Audits
• Back Taxes
• Unfiled Tax Returns
• Wage Garnishment
• Account Levies
• Property Liens
• Negotiating with the IRS
• IRS Penalty Relief
• IRS Administrative Tax Appeals
• Representation in Tax Court
• Representation in Court of Claims for Refunds
• Report previously Undeclared Income both Domestically & Offshore
  
• Voluntary Disclosure of Tax Fraud
  
• Criminal Tax Evasion

Tax lawyers often specialize even further, since tax laws in the U.S. vary greatly. For example, if you need to deal with an estate or trust, there are tax lawyers who only take on cases dealing with taxes in estates and trusts or if you need to deal with an International Tax issue, there are tax lawyers who only take on international tax cases. 

Contact the Tax Lawyers at 

Marini& Associates, P.A. 

 

 

for a FREE Tax HELP Contact Us at:

www.TaxAid.com or www.OVDPLaw.com 
or Toll Free at 888-8TaxAid (888) 882-9243 

 

Read more at: Tax Times blog