Inside this edition: Kingpin of U.S. Tax Scam Arrested in India, Spa Owners Caught Massaging Their Income, Interior Designer Redecorates his Tax Returns, Fried Chicken Restaurant Owners Take a Lickin’ From the IRS, IRS Question of the Month, For the Foodies, A bit of humor…

June 2017

Inside this edition:

  • Kingpin of U.S. Tax Scam Arrested in India
  • Spa Owners Caught Massaging Their Income
  • Interior Designer Redecorates his Tax Returns
  • Fried Chicken Restaurant Owners Take a Lickin’ From the IRS
  • IRS Question of the Month
  • For the Foodies – Stickie Ginger Shrimp with Scallion Rice
  • A bit of humor…

Kingpin of U.S. Tax Scam Arrested in India

Upon arrival at Mumbai’s International Airport, Indian police arrested Sagar Thakkar, 24, also known as Shaggy, for being the mastermind behind a call center IRS scam that targeted thousands of Americans and netted more than $300 million.

In October 2016, the U.S. Justice Department charged more than 60 people in India with participating in the scam, where call center agents impersonated IRS employees or other federal officials and demanded payment for non-existent debt.

Call center operators would threaten their potential victims with arrest, imprisonment, deportation or hefty fines if they did not pay immediately. They also told people to make their payment by prepaid debit cards or to wire transfer money to accounts that were stolen or fake identities. Authorities have identified at least 15,000 people in the U.S who were targeted.

Following the arrests in October, Thakkar fled to Dubai and also spent time in Thailand. During that time it is alleged he led a lavish lifestyle, staying at five-star hotels and purchasing expensive cars.

The U.S. is working with India to have Thakkar extradited to the United States.

Spa Owners Caught Massaging Their Income

Four family members from Queens, NY were indicted on charges of failing to pay more than $1.5 million in taxes. Steve Chon and his brothers Daniel Chon, Victor Chon and his daughter Stephanie Chon were charged with two counts of grand larceny in the second degree, eight counts of criminal tax fraud in the second degree and one count of criminal tax fraud in the third degree.

From the tax years 2010 to 2013, it’s alleged that the four failed to report millions in income to avoid paying the $1.5 million due in taxes.

If convicted, the four could spend anywhere between five and fifteen years in prison.

Interior Designer
Redecorates His Tax Returns

The owner of a Kirkland, WA, interior design firm, Daniel Nix was indicted in April 2017 on thirteen counts of tax evasion, eleven counts of providing fictitious financial obligation and one count of corrupt interference with the administration of the Internal Revenue Code.

As alleged in the indictment, as early as 1998 and from 2000 to 2007, Nix refused to pay his income tax which totaled more than $340,000, using shell companies to hide his income, filed false bankruptcy claims and filed false claims against the government.

For the tax years 2010-2013, Nix again attempted to hide his income to avoid paying taxes. Nix sent 11 fake money orders exceeding $1 million to the IRS in 2013 to make it appear as if he was paying his tax obligations.

Tax evasion carries a maximum prison sentence of up to 5 years and a $250,000 fine. For presenting fictitious financial statements Nix can be sentenced to up to 25 years in prison and an additional fine of $250,000. Attempts to interfere with the administration of the tax code is punishable by up to 3 years in prison and a $5,000 fine.

Fried Chicken Restaurant Owners Take a Lickin’ From the IRS

In a superseding indictment, three restaurant owners were charged with 18 counts of conspiracy and willful failure to pay taxes.

Hazrat Khan and Kurshed Iqbal, both from Boston, MA were initially indicted in April 2016 and the superseding indictment added Rahman Zeb, also of Boston to the charges.

The defendants owned two Crown Fried Chicken restaurants as well as the New York Fried Chicken Restaurant. It’s alleged that Khan and Iqbal took steps to conceal their ownership in two of the stores and provided tax preparers with false information regarding payroll and income, causing the preparers to file false returns. Khan and Zeb used a similar scheme for the third restaurant.

To avoid paying payroll taxes, all three are alleged to have falsely reported the number of employees, many who were undocumented workers, and wages paid to the IRS. It’s also alleged that they paid their employees under the table and filed false tax returns with the incorrect amount of sales, total income, compensation of officers, salaries and wages and taxable income.

If convicted, Khan, Iqbal and Zeb face up to five years in prison for conspiracy, a fine of $250,000 and restitution. On the charge of willful failure to pay taxes, the court could impose a maximum sentence of five years in prison, an additional fine of $250,000 and three years supervised release.

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.

I’d like to hear from you…

Jeffrey Schneider, EA, CTRS, NTPI Fellow
Phone: 772.337.1040
738 Colorado Ave
Stuart, FL 34994

Thank you for your kind words

SFS Tax Problem Solutions is one of the best when it comes to Tax Resolution & IRS Tax Debt Relief. Located in Port St Lucie, they’ve got your back when it comes to taxes! I highly recommend you check them out!

Marc Coloma

Q & A

Question: I just heard about a Nanny Tax. What is it?

Answer:  When you hire someone to work in your home, the government considers you an employer. As an employer, you are responsible for paying employment taxes. These employment taxes are commonly known as “nanny taxes” although they don’t only apply to nannies – they apply to anyone working in your home. This includes anyone who works in and/or around your home such as babysitters, caretakers, house cleaning workers, domestic workers, drivers, health aides, housekeepers, maids, nannies, private nurses, and yard workers. According to the IRS, a person is an employee if you’re telling them what they will do and how they will do it, as opposed to an independent contractor that you tell only what results you’re looking for. Families that misclassify their household employee as an independent contractor (by providing a Form 1099 for filing taxes) can be charged with tax evasion.

A Bit of Tax Humor…

So, it isn’t low carb and it is on the sweet side and it isn’t really on my diet, I still sneak a bite or two or three. Yummy!

Ali and her veggies! After she adds snow peas, sometimes bean sprouts on top, Sriracha sauce and extra garlic she is one happy camper.


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