RECENT LEAD ARTICLES About Taxpayers with IRS Problems from our FREE Newsletter

Former Philly Mayoral Aide Admits to Tax Fraud

At one time, Ted Beitchman had Philadelphia wrapped around his finger. As a Democratic Party insider and chief of staff for ex-Mayor Ed Rendell, Beitchman stood at the forefront of the city's political scene, and later at the forefront of its social scene as publisher of the now-defunct magazine Player.

But nowadays Beitchman, 54, is standing at the forefront of a judge's sentence that will affect the rest of his life. On June 12, the Philadelphian pleaded guilty to two felony tax-fraud charges before U.S. District Judge Anita B. Brody.

He admitted that he "willfully" filed two false income-tax returns in 1995 and 1997, at which time Beitchman served as the Philadelphia mayor's top aide.

On his 1994 return, Beitchman reported $56,000 earned from his city job but failed to report the $21,525 he earned from Time, Inc. for writing a story about Philadelphia. On his 1997 return, the former chief of staff reported his municipal salary of $61,790 but again failed to report earnings from the sale of magazine articles, this time totaling nearly $25,000. He faces stiff fines and possible jail time.

Creamery Fined $7.2 Million for Tax Fraud

In the largest criminal tax fine in New England history, Massachusetts-based West Lynn Creamery, Inc. pleaded guilty to participating in a tax scheme that will cost its parent company, Dallas-based Suiza Food Corp., $7.2 million.

Federal prosecutors said West Lynn Cremeary for five years operated a false invoice scheme, known as the "rebate program," which resulted in the Massachusetts company underreporting income to the Internal Revenue Service.

West Lynn Creamery issued rebates from 1992 to December 1997 totaling approximately $14.2 million. The customers failed to report the rebates as income, which cost the government more than $4 million, federal prosecutors said. West Lynn Creamery pleaded guilty to one count of conspiracy to impede the collection of taxes by the IRS.

"The assessment of the largest criminal tax fine in New England history sends a clear message to all business owners to think twice about hiding income, therefore jeopardizing their profitability at the expense of gaining a business advantage," said Michael P. Lahey, Special Agent in Charge for the IRS criminal investigation.

S. C. Highway Patrol Officer Arrested for Evading Taxes

36-year-old Mark Thomas Bolick of 2128 Chanticleer Circle in Rock Hill, South Carolina was arrested and charged with one felony count of knowingly and willfully attempting to evade the income tax.
Bolick was arraigned later the same day - Judge Long presided. The judge set a $5000 personal recognizance bond.
Investigators say Bolick filed a false 1999 tax return. Bolick attached to the return a letter supporting some common taxpayer protester myths.
Bolick was contacted by Investigators from the Criminal Investigations Department to give him the opportunity to explain his position. Bolick told investigators that after reading the book "How Anyone Can Stop Paying Income Taxes" he decided to not comply with the tax laws.
The State of South Carolina is using Officer Bolick's case to urge taxpayers to be wary of improper suggestions and false arguments about the tax laws.

You Look Familiar

Bennettsville tax preparer arrested for second time this year

A Bennettsville tax preparer arrested in February for preparing fraudulent income tax returns was arrested again by investigators on similar charges.

Paula D. Turner, 35, was held at the Marlboro County Detention Center after being denied bond by Magistrate Ron Stanton. She was charged with 10 counts of willfully submitting fraudulent income tax returns. Turner was arrested and accused of preparing and submitting six fraudulent 1999 income tax returns.

Turner could be sent to jail for up to five years on each charge and fined up to $100,000 if she is convicted.

Turner is accused of preparing her clients' income tax returns claiming bogus tax deductions for non-existent dependents and using fabricated business and farm expenses to show losses. Turner's clients told investigators they were unaware of the illegal deductions Turner claimed on their returns.

Tax authorities stated that while a taxpayer may not be aware of incorrect information on their tax return, they are responsible once the return is signed and will incur penalties and interest.

Houston Man Could Be Fined $750,000

Johnny Ray Farris Sr., a 62-year-old Houston man, was indicted for failing to file an income-tax return in 1993 and filing a false return in 1994. If convicted on both charges, Farris could face a maximum sentence of 13 years in prison and fines totally $750,000.

IRS Question Corner …

Question: I know, I know - I've been hearing it over and over: I should have been more careful when it came to tax day. A few bad decisions over the last two years have put me in a difficult situation. I owe the IRS a large sum of money, and though I may be able to afford it over time, I can't swallow that amount right now. What can I do?

Answer: My job isn't to lecture you - it's to help you get out of trouble with the IRS. I specialize in solving problems for taxpayers, and I want to reassure you that you have plenty of options.

First of all, don't even worry about having to cut a whopper of a check to the IRS. Frankly, there's no need. As any qualified tax professional will tell you, you have the option of working out an installment plan with the IRS that is manageable and fair. It works a lot like a car payment or mortgage: an easy-to-handle monthly payment that will allow you to pay down your debt while you also live a normal life.

Secondly, before we even start talking to the IRS about installment plans, we need to analyze how much you owe and how much the IRS would be willing to accept in compromise. That's right, you don't always have to pay the entire amount. The IRS now realizes that a portion of the debt is certainly better than no money at all. It's called an Offer in Compromise. Some of my clients have walked away from the IRS table having only to pay pennies on the dollar. Although this is not a locked-up secret known only to a few select IRS agents, making an Offer in Compromise requires skill and knowledge of the subject, which an IRS problem solver can provide.

Give me a call and set up and appointment. I’m an IRS Problem Solver. For a free, no-risk consultation, please call my office at (803) 771-4037 ext. 15.