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Understanding And Avoiding Tax Preparation Liability Penalties

As I pass by the strip mall near my office on those chilly late winter/early spring days, I almost always see someone dressed up like the Statue of Liberty outside the tax preparation storefront beckoning cars to pull over. That sight triggers two thoughts in my mind. The first one is this clip from a […]

Recreating Income And Expense Records In Fraud Cases

World War II was far from over in the autumn of 1944, but with Allied armies closing in from three sides, total victory was probably off the table for the Nazis absent some spectacular reversal of fortune for one side or the other. That was about the time German officials began destroying records, specifically about […]

Civil Tax Penalties: Don’t Party Like It’s 1999 Just Yet

Immediately after the lead juror announces a “not guilty” verdict in a criminal tax lawsuit, nearly everyone at the counsel table reacts like this. However, just like O.J. Simpson’s legal problems were far from over that day, a criminal tax trial is only round one. Before the ink is dry on the jury form, the […]

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After the California Angels dropped a tough 7-6 decision to the Kansas City Royals (normally reliable reliever Rudy May had a rare bad game, giving up two runs in the bottom of the eleventh inning), baseball great Frank Robinson sagely remarked that “Close don’t count in baseball. Close only counts in horseshoes and hand grenades.” […]

‘Close’ Only Counts In…Tax Accuracy Penalty Cases?!

After the California Angels dropped a tough 7-6 decision to the Kansas City Royals (normally reliable reliever Rudy May had a rare bad game, giving up two runs in the bottom of the eleventh inning), baseball great Frank Robinson sagely remarked that “Close don’t count in baseball. Close only counts in horseshoes and hand grenades.” […]

How the IRS Reconstructs Income In Tax Fraud Cases

In one of the climactic scenes from 1954’s On The Waterfront, Crime Commission prosecutors had to make their corruption case against union boss Johnny Friendly (a/k/a Michael Skelly) by convincing a reticent yet pure-hearted Terry Malloy to come forward and tell what he knew about corruption in the International Longshoremen’s Association, beginning with the murder […]

Liability for Trust Fund Taxes

As a rule, workers look forward to payday, even if their meager restitution isn’t as much as they would like it to be. Visions of sugarplums dance in their heads, or at least visions of one less bill emblazoned with the dreaded “Past Due, Please Remit” stamp. As a rule, employers dread payday. Even if […]