June 21st, 2018

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Inside this edition:

• Anesthetist Will Need a Sedative After IRS Indictment
• Escort Service Business Owner Tries to “Trick” the IRS
• A Bit of Humor
• Top Tax Crime Prison Sentences for 2017
• Your IRS questions answered here
• Question & Answer
• For the foodies …Bruschetta Salmon

Anesthetist Will Need a Sedative After IRS Indictment

Nurse anesthetist, Loren Pulliam, from Pittsburgh, PA, was indicted by a federal grand jury on five counts of tax evasion and four counts of failure to file income tax returns and pay federal income tax.

It’s alleged that Pulliam, who earned over $500,000 in income between 2002 -2005 as well as over $1.2 million in additional income between 2008 and 2016, tried to evade income tax by establishing a nominee entity and directing her employers to pay her compensation to the entity. Pulliam opened an account in the nominee’s name and used the funds to pay personal expenses.

Also, Pulliam did not file or pay, any personal income tax returns for the years 2011 to 2014.

A conviction could result in a statutory maximum sentence of five years in prison for each count of tax evasion; one year of prison time for each count of failure to file, and a period of supervised release, restitution, and monetary penalties.

Dennis Zarudny of Miami, FL pled guilty to filing a false tax return in court for the Southern District of Florida.

Zarundy, owner of Denzar, Inc, which operated under the business name of “Elite Escort Service,” advertised his business on the Internet as a “prestigious escort agency providing 24-hour outcall escort services & adult entertainment for upscale gentlemen and couples in South Florida.”

Zarudny filed false corporate and personal returns for the tax years 2011 through 2014. Customers of the escort service were allowed to pay by credit card, checks or cash. Zarudny reported all of the credit card transactions but did not report income received by cash or check.

Sentencing is scheduled for this month, where he faces a statutory maximum sentence of three years in prison, supervised release, monetary penalties, and restitution.

“The U.S. Senate is considering a bill that would tax Botox. When Botox users heard this, they were horrified. Well, I think they were horrified. It’s difficult to tell.”
– Craig Ferguson

Top Tax Crime Prison Sentences for 2017

• In July 2017, a Watertown, NY restaurateur was sentenced to 150 months in prison for tax evasion and investment fraud. He engaged in a scheme to evade more than $4 million in taxes and obstruct the IRS.
  In October 2017, a Grand Junction, CO business owner was sentenced to 88 months in prison for tax evasion and failing to file corporate and individual tax returns. He had not filed a personal tax return since 1992 and had not paid individual income taxes since 1993.
• In July 2017, a Potomac, MD doctor and entrepreneur was sentenced to 119 months and 29 days in prison for defrauding his former company’s shareholders and for failing to pay more than $7.5 million in employment taxes.
• In October 2017, a Boynton Beach, FL resident was sentenced to 30 months in prison for obstructing the IRS. He filed fraudulent personal tax returns with the IRS that sought more than $5.6 million in fraudulent refunds, of which the IRS paid more than $485,000.
• In January 2017, a St. Louis, MO tax return preparation business owner was sentenced to 27 months in prison for tax evasion. He underreported his businesses’ gross receipts by over $1.5 million and evaded over $580,000 in tax.
• In July 2017, a Fort Meyers, FL businessman was sentenced to 57 months in prison for conspiring with investment advisors to hide money in offshore bank accounts. He used secret numbered bank accounts and foreign shell companies to hide millions of dollars to evade more than $728,000 in U.S. taxes.
• In July 2017, a Loveland, CO businessman and delicatessen owner was sentenced to 24 months in prison for conspiring to file fraudulent claims for tax refunds. He conspired with his return preparer to file three tax returns that claimed more than $1 million in bogus refunds, of which the IRS paid $350,765. He spent the funds on precious metals and coins, jewelry and luxury travel.

(Source: Dept. of Justice)

If you have an IRS issue, or just want to refer a friend, relative or client, I’d love to hear from you. I can provide a no-obligation, confidential consultation to help you solve your IRS problems.