The IRS Audit Blog

Posts Tagged ‘legal’

Question: How do I know if I am legally shielded from my small business Sub S corporation?

This is a followup to a previous question. I’ve got a sub S corporation for a small business that I’ve kept established with Florida state for years. Recently, the Yellow Pages has instigated a lawsuit against my company for a bogus debt they claim I owe. The company is very small – basically just me. I do file and pay the annual “report” for the corp. Also, I keep expenses/income reasonably separate with a merchant and checking acct in corp name. However, I do make purchases, transfers, etc. from the corp accts to my personal. I haven’t yet “paid myself a salary” on income tax (I know I should). However, all I want to know at this point is could this creditor realistically go after my last savings held in a personal saving acct? I’ve had that money saved up for years before this hapenned. Thanks for any tips as I can’t get entirely straight answers from attorneys I have paid.

Answer: Yellow pages cannot go after your personal savings if they are filing against your business. They can only file against your business.

Second, you are going to get audited for doing the practices you are doing. You are illegally taking personal money out of your business account. You have to pay yourself and not continue these practices. If the IRS looks into this they will audit you and find out there’s more years to audit you still. You’ll end up owing the feds tons of money for these types of practices.

Do not pay your personal stuff out of your business account, you’ll get caught eventually.

If these yellow pages are starting a lawsuit, great. Let them. They have to prove that you agree’d to their services, they have to prove you are liable for the money they are claiming. All of it rests on them to prove you owe them. They need to prove that they provided a service that you agree’d to pay for. Should be easy to prove that you did nothing of the sort and you should be free and clear from this.

When it comes to debt collectors, you can send in a written statement that this service was never agree’d upon and that you had no idea of it until long after they claimed it. You have the legal right to ask them to attach your letter to this debt, so that anyone bringing up your credit sees it right away. I know it has to be written within so many words, so you need to find the guidelines there. I’d do that part immediately!

Lastly, why pay all the extra for a corp if you really aren’t running your business like one? Why not just work off of your social security number instead? It would save you quite a bit of money every year and you could pay your personal bills and your business ones out of the same account legally, instead of illegally like you are now. Really makes little sense for you to have an S corp under your circumstances. I can’t see paying thousands of dollars worth of fines if the IRS gets their claws into you just so you can buy toilet paper or groceries out of your business account.

Back to your main question. Personal and business cannot be legally tied together. If i file bankruptcy on my business, the money won’t be able to be taken from my personal account. I have a feeling, with the way you are doing your bank accounts, that’s why the lawyers aren’t helping you. They see you doing things illegally and don’t want much of a part of it and won’t give solid advice due to it. If they did, they could be liable as well. If i heard you robbed a bank, from your own lips, and didn’t go to the police, i could be charged with accessory. This is why you aren’t getting good help or good legal advice. With the way you are doing things, your s corp cannot protect you as well as it could have if you were doing things legally.

If this company files to go through your records, which it could have a right to do in a lawsuit, it could easily prove you fraudulent there. Which would almost ensure you looking guilty in other fields as well. Like finding out your 20 is missing and knowing there’s someone who was once picked up for shop lifting. You’d accuse them and believe it because you could prove they once stole before.

Your business practices are fraudulent with the way you pay for things. It’s easy to “pay” yourself instead and put the money into a personal account then it is to do it the way you are doing it. You can pay yourself as often as you need so that your stuff is paid for. If you have too, get a personal American Express card that has to be paid off at the end of every 30 days. Then buy all your stuff on it and then pay it off at the end of every month with one large check to yourself in that exact amount.

Local sites would be affected if government closes down

Prospects for an imminent shutdown of the federal government seem unlikely, but even if the government does shut down temporarily starting Friday, the effects locally would be limited to “non-essential” services — for instance, staffing the Lincoln Home National Historic Site.

Drunk District Attorney hits and runs from teenager.

Question: Tax fraud case- Do u think he will face jail time?

A federal grand jury has indicted a Calhoun, Ga. tax preparer on charges of filing falsified tax returns to the Internal Revenue Service and obtaining $117,000 in improper tax refunds.
An Oct. 22 indictment accuses 31-year-old Wilson Ngure of falsifying income levels, withholdings and deducations while electronically filing returns for more than 30 taxpayers.
U.S. Attorney David Nahmias says taxpayers weren’t aware of false items on their returns. The indictment accuses Ngure of pocketing the improper tax refunds.
“Tax return preparers who knowingly prepare false returns for the purpose of stealing tax refunds will face federal prosecution and federal prison,” said Nahmias. “This defendant will now be confronted with the evidence that he engaged in an extensive tax fraud for the purpose of enriching himself and depleting the U.S. Treasury.”
Article from

http://www.newschannel9.com/news/tax_972827___article.html/returns_filing.html?wap=1

Answer: Yes! And, he will also have to repay any amount they can prove.

Hope this helps.

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IN THE CIRCUIT COURT FOR NASSAU COUNTY, FLORIDA PROBATE DIVISION File No. 10-CP-234 Division: A IN RE: ESTATE OF MARY C. ALMOND Deceased. NOTICE TO CREDITORS The administration of the estate of MARY C. ALMOND, deceased, whose date of death was December 5, 2010, File Number 10-CP-234, is pending in the Circuit Court for Nassau County, Florida, Probate Division, the address of which is 76347 …

ATLANTA BANKRUPTCY LAW FIRM: Bankruptcy And Your Tax Refund

Question: What do you have to do to be an LLM Tax Attorney?

I have a bachelors in Accounting and have worked in the corporation tax field for 12 years including my corporate tax internship in what used to be a fortune 500 company. I am now in a fortune 100 company and would like to further my studies, but don’t know if I want to simply get a masters in taxation…I would like to get my LLM in Tax. I know that this is a pretty prestigious career and a lot of schools don’t exactly offer it…but I know there are some…for example, NYU, UM, and BU all offer it, among others.

When I read the criteria for this program, it seems you already have to be in law school to get in…is it possible for me to apply to a law school with a bachelors in accounting and perhaps a CPA and start a program as an L.L.M. Tax or even a J.D./LLM Tax dual program? Please elaborate this for me as i am sadly not understanding all the requirements.

Thanks so much.

Answer: Get a law degree and a masters in tax.

Beacon Hill Roll Call: How local legislators voted on redistricting

At least one incumbent member of the state’s delegation will not be taking his or her oath of office in 2013. Someone has to be the odd man or woman out. Speculation was rampant on Beacon Hill about possible scenarios.

Tax Attorney Jobs

Question: how much do minors have to earn in a year to get tax returns?

she’s 16 and earns 13/hr at her job. she’s been there four months. anyone a tax attorney out there?

Answer: The threshold for 2005 is $5,000 of earned income for a minor. Anything below that and she is not required to file, assuming she is being paid as an employee (receiving W-2). The threshold is much less if she is receiving a 1099.

As orf1943 pointed out, if she is having taxes withheld from her paycheck, she will want to file anyway in order to get those back as a refund.

Marysville contractor gets over 6 years, ordered to pay $2.5 million for sales tax theft, workers comp fraud

A 54-year-old Marysville drywall contractor who admitted reporting less than one-half of one percent of the sales tax he collected on jobs has been sentenced to 75 months in prison Friday after repaying only $500 in restitution, according to a release from the state Department of Revenue.

IRS Tax Help Attorney Lucy Ludwig

Question: Upon the advice of my tax attorney, was told to open a new checking acc’t, (IRS) problem: I owe other banks!

Had my own business, fell through, lost everything. IRS states I owe 6 figures, my lawyer said I should get a new bank acc’t as it would take 8-10 months for them to get to the new account information. I’m on the “checksystems” and don’t think I can open a new checking account with another bank. Can I have a family member open one under their name and be listed as well? I’m worried the IRS will empty out my bank account! Please help with valid ideas? Thank you kindly!
****The intent to wait 8-10 months is to have time to work out details regarding the moneies owed to the IRS.

Answer: Hmmmmmmm, Im not so sure if I would listen to that attorney!!! If you owe other banks, it is on your credit bureau. Just because you change banks does NOT mean your cash is safe. Your social security number immediately alerts the IRS of where you are banking and they will seize that money immediatley……
Think this one thru…..your attorney is WRONG!

Take Care,
Darlene M

Lovell Joins nexAir as CFO, General Counsel

Having entered the legal profession as a means to develop a long-term business career, Milton Lovell realized his goal recently when he was named the …

New York Tax Attorney – Sean Chi offers advice on Reducing Your Tax Debt