May 30th, 2018
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Inside this edition:
- Owner of Catholic Online Website Thinks Charity Begins at Home (His)
- IRS Reels in Fisherman – Hook, Line & Sinker
- A Bit of Humor
- Attorney Gets Barred in Tax Scheme
- Your IRS questions answered here
- Question & Answer
- For the foodies …Breakfast Stuffed Scallion Pancake
Owner of Catholic Online Website
Thinks Charity Begins at Home (His)
Michael Galloway of Bakersfield, CA, who owned and operated one of the oldest websites on the Catholic internet, Catholic.org, was convicted on four counts of tax evasion by a jury in March 2018.
The Catholic Online website solicited donations to help the victims of the 2004 Indian Ocean Tsunami and Hurricane Katrina. It was shown in court that Galloway used some of those funds for personal and business expenses, including his homeowner’s association fees on his personal residence, car payments, insurance, utilities, cable services, tile work and personal legal fees. Galloway did not report any of the money taken from the charities as income on his personal tax returns.
It was found that Galloway had underreported his income between 2003 and 2006 by at least $671,755, and one year Galloway reported an income of less than $30,000 a year although, he lived in an $850,000 house.
Sentencing is scheduled for June 18, 2018, where he could receive a maximum statutory sentence of five years in prison and a $100,000 fine.
IRS Reels in Fisherman— Hook, Line & Sinker
Billie Schofield of Scituate, RI was indicted by a federal grand jury in March 2018 on charges of corruptly endeavoring to impede the internal revenue laws, tax evasion and perjury.
Schofield, who worked for several fishing companies from 2005 to 2016, earned several hundreds of thousands of dollars in income during that time. However, to evade paying taxes, he hid his income by depositing the funds in nominees’ accounts and filing false income tax returns.
The IRS placed a lien on his house, in which Schofield attempted to pay off with bogus checks, and prevented the delivery of levy notices to his employers. In February 2018, Schofield gave false testimony before a grand jury in response to questions about checks that were drawn on a closed bank account and submitted to the IRS.
If convicted, Schofield faces a maximum sentence of five years on the tax evasion and perjury charge, with an additional three years for obstruction of the internal revenue code, a period of supervised release, restitution, and monetary penalties.
A Bit of Humor…
Q: Why did the Post Office just recall their newest stamps?
A: Because they had pictures of IRS agents on them, and people couldn’t figure out which side to spit on.
Attorney Gets Barred in Tax Scheme
An attorney from Southwest Ranches, Fl., Michael Meyer, has been handed a civil complaint filed by the US to permanently barring him from providing federal tax advice because of his alleged tax scheme that he marketed to financial planners and CPAs.
It’s alleged that Meyer, an attorney licensed in Kentucky and Indiana, advised participants to claim unwarranted charitable donations to three bogus charities that he controls. The donations are made on paper only and no money was ever donated. Some of the “contributions” were backdated promissory notes and fabricated intellectual property. It’s also alleged that Meyer prepared baseless appraisals and false federal tax forms to facilitate the scheme.
The complaint also alleges that Meyer misrepresented himself as a licensed CPA and Certified Valuation Analyst.
The United States Treasury is seeking to recover the more than $35 million it claims to have lost.
I’d like to hear from you…
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.
Thank you for your kind words
Jeff and his staff have helped our family through our tax troubles in the past. And I know he’ll continue in the future. – Don Musante
Q & A
Answer: After the wedding, you have to decide whether to file jointly or married filing separately. I would keep a minimal amount in a joint bank account, but you should also open separate accounts, one for just you and one just for him.
If you file jointly, any joint refund can be used to pay down his debt even if the tax refund is due to your activity.
Filing separately may cost more tax for each of you, but it avoids this issue.
However, if these late returns result in a tax due and he does not pay, they can levy your joint bank accounts.
Another option is to file jointly and then file an injured spouse claim.
***If you have a general question that you would like answered in our next publication, email Jeffrey Schneider. Unfortunately, we cannot provide answers to your specific problem.
For the foodies…
Breakfast Stuffed Scallion Pancakes
I hope you enjoy this recipe.
Find the recipe on the SFS Tax Problem Solution Pinterest page along with other pins and videos.
