AGARD TAX Relief Letter Hawaii Tax Attorney

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AGARD TAX Relief Letter Hawaii Tax Attorney Powered By Docstoc
					                                              Hawaii’s Tax Doctor
                                             Andrew A. Agard, Esq.

                                  AGARD TAX Relief Letter
Volume 17, Issue 2                                                                                              May 2011

                                         Florida Prisoners Lead the Nation in IRS
Florida Prisoners Lead
the Nation in IRS                                     Payment Scam
Payment Scam ……..p.1
                                       Inmates Received $39.1 Million by Filing Fraudulent Tax Returns

What to Do If You Dis-                 ecently, Hills-              Singletery had an en-       dollars add up over
agree With an audit? .....2
                                       b o r o u g h            tire instruction manual,        time, and funds are
                              County jails have been            which included detailed         then deposited into
Common Myths About
The IRS…....p.2               coming down hard on               calculations, tax identifica-   fake accounts. In-
                              inmates that have                 tion numbers, and instruc-      mates will also pad
Illinois Man Sentenced        been attempting to                tions on how to steal the       their personal canteen
for Income Tax Evasion        claim tax refunds for             information.                    money in jail (money
…......p.3                    themselves by way of                                              typically used for per-
                              stolen identity. Several              Officials from various      sonal items that are
Two Defendants Sen-           pages of employee tax             jails    in   Hillsborough      typically capped out at
tenced in $1.2 Million        information,        which         County have caught 12 in-       specified    amounts).
Money Laundering              contained annual earn-            mates thus far, but it is       That's your hard-
Scheme.......p. 3             ings     i n fo r m a t i o n ,   hard to find the alleged        earned tax dollars at
                              SSAN (Social Security                                             work.
Accountant...Attorney...or    Account Number), and
IRS Specialist?               stacks of IRS Form                                                    Today it's getting
…….p. 3                       1040 EZs were found                                               tough for anyone to
                              in    their      facilities.                                      get a job, and we are
                                                                                                all out busting our
     Thank                        Officials have said                                           backs while these
                              this has been an ongo-                                            guys are using an-
      You!                    ing problem for years                                             other scam to skim
  Thanks to YOU, the          in state prisons , and                                            more off Uncle Sam.
                              now it’s trickling down           Skimming Off Uncle Sam
   word is spreading.                                           Prisoners are hard at work
 Thanks to my clients         into the county jails. A                                              They have been
                                                                stealing identities and get-
  and friends who gra-        prisoner by the name                                              convicted of crimes
                                                                  ting paid by Uncle Sam
 ciously referred me to       of Brian Singletery                                               already, now they are
  their friends, clients      was recently trans-               unless they are caught in       taking up already
   and relatives last         ferred to a Hillsbor-             the act.                        valuable tax payer
month! I enjoy building       ough County for an                    It’s tough to gather evi-   space in state prisons,
                              appeal,     where     he          dence until long after the      and then they arrive
 my business based on
                              taught his new fellow             damage has already been         at county jails to con-
the positive comments
                              inmates      how    they          done.                           tinue suckling off the
and referrals from peo-
                              could easily mislead                  So officials presented      government and get-
    ple just like you.
                              the IRS into believing            the information to the IRS,     ting refunds as if they
                              they were different in-           who, in turn, seemed to         were rewards for do-
  I just couldn’t do it       dividuals.                        show      little   interest.    ing time.
      without you!
                                                                Amounts are not huge, but

      Andrew A. Agard                                  Tel no. (808) 386-1666           
    Tax Dispute Attorney
 V OLU ME 1 7, ISSU E 2                         A G ARD T AX RELIE F LETTE R                                          PAGE 2

                           What to Do If You Disagree With an Audit
Did you know that you have the
power as an individual taxpayer to       How to Appeal the Findings Of An
appeal almost any decision made by       Audit. If you’re audited (which is hap-     Your Argument Must Have
the IRS? In fact, you can appeal au-     pening with increasing frequency            Merit – Or Pay a Stiff Penalty.
dit findings, penalties and interest,    these days, especially for small busi-      The IRS will not consider your dis-
rejected offers-in-compromise, liens,    ness owners), you may disagree with         agreement valid if made solely on
seizures, garnishments and other         the IRS findings. You have the right        “moral, religious, political, consti-
collection actions.                      as a taxpayer to disagree with any or       tutional, conscientious, or similar
                                         all of the IRS’ findings.                   grounds”. But be forewarned, if
When You Cannot Appeal                                                               your appeal is seen as frivolous
According to the IRS                     First Step: If you do disagree with the     and you end up taking it to Federal
“Appeals is not for you if: (a) Your     IRS assessment of your taxes after an       Tax Court, it could end up costing
only concern is that you cannot af-      audit, you can choose to meet or speak      you big time. The IRS doesn’t have
ford to pay the amount you owe. (b)      face-to-face with the supervisor of the     much patience with delaying tac-
The correspondence you received          person who issued the findings. How-        tics.
from the IRS was a bill and there        ever, going into a meeting like this
was no mention of Appeals.” So in        with a supervisor face-to-face is ill-      The IRS gives this warning:
these two instances, an appeal would     advised. IRS supervisors are highly-        “Frivolous Filing Penalty Caution:
be a premature action to take.           trained in arguing their point in these     If the Tax Court determines that
                                         situations. Going into a meeting like       your case is intended primarily to
If you are concerned that you cannot     this alone could be a huge mistake.         cause a delay, or that your position
afford to pay the tax you owe, there                                                 is frivolous or groundless, the Tax
are channels to go through before you    Second Step: The Appeals Office of the      Court may award a penalty of up
would begin the appeal process. For      IRS is where most differences are set-      to $25,000 to the United States in
instance, you could work with a tax      tled with the IRS. For cases under          its decision.” As you can see,
attorney and make your case to the       $25,000 in tax, it may be possible to       there’s a lot involved with the Ap-
IRS that your situation qualifies for    settle for a lessening in the tax liabil-   peal process. It’s not something to
one of these tax debt payment meth-      ity while at this level.                    tread into lightly. If you’re going to
ods: Non-Collectible Status, Offer-in-                                               appeal, it makes a lot of sense to
Compromise, Installment Payment          Third Step: However, if the case is         have a competent attorney repre-
Plan, Partial Payment Installment        more substantial and the Appeals Of-        senting you to increase your odds
Agreement, Tax Bankruptcy.               fice does not reach what we feel is a       of winning before the IRS.
                                         fair decision, it is possible to take the
                                         case to a United States Tax Court.

Common Myths About the IRS:
Myth: The IRS Can Take Your Money If You Don’t Give It to Them Voluntarily
Answer: True. If you’ve been notified by the IRS either over the phone or by mail that
you owe them, that’s all the warning you get.

If after contact, you don’t pay them completely and voluntarily - they have the right to take every penny that
you owe from them…one way or another. They don’t have to take you to court or sue you to get their
money. If they’ve sent the collection notices and you’ve refused to pay or haven’t paid in full – that’s all
they need to do.
That’s when it can get ugly:
-They can dip straight into your bank account and take your money
-They can garnish your wages or salary
-They can take your social security, 401(k) or IRA’s
-They can take any money owed to you – like accounts receivable or sales commissions.

      Andrew A. Agard                               Tel no. (808) 386-1666               
    Tax Dispute Attorney
   V OLU ME 1 7, ISSU E 2                     A G ARD T AX RELIE F LETTE R                                     PAGE 3

                        Illinois Man Sentenced for Income Tax Evasion
 On September, 30, 2010 in Fairview Heights, Ill., Orvil Hassebrock was sentenced to 36 months
 in prison followed by three years of supervised release and ordered to pay restitution and fines of
 more than $1.71 million for failing to file tax returns. According to court documents, Hassebrock
 was convicted on April 29, 2010 for willfully attempting to evade and defeat the assessment and
 payment of income tax for 2004 and willful failure to file an income tax return resulting in a tax
 loss to the IRS of nearly $594,000. Hassebrock’s restitution includes back taxes, interest, fines
 and a special assessment
 . ……………………………………………………………………………………………………………………
                      Two Defendants Sentenced in $1.2 Million Money
                                       Laundering Scheme
 On October 26, 2010, in Charlotte, N.C., Donald Eugene Bess, of Bessemer City, was sentenced
 to 24 months in prison and ordered to pay $549,789 in restitution. On June 7, 2010, Ray Eugene
 Rohm, of Dallas, North Carolina, was sentenced to 24 months in prison and ordered to pay
 $842,288 in restitution. In addition, each defendant was ordered to forfeit all property involved
 in the money laundering conspiracy. According to court documents, Rohm owned and operated
 Rohm Enterprises, a window treatment services business and Bess operated a body shop busi-
 ness named Bess Used Car Wrecker Service. From in or about April 2001 to in or about January
 2007, both deposited into their respective business accounts $1.2 million in fraudulently ob-
 tained checks generated by a former claims manager of Farm Bureau Insurance. Although
 they’re aware that the checks were obtained through an insurance fraud scheme, they deposited
 the checks on his behalf & collected a fee in return for conducting the financial transaction.

 Fiscal Year 2010 - Insurance Fraud Investigations

                            Accountant...Attorney...or IRS Specialist?
Let me ask you a question. If you      Going It Alone With Cancer…           people who owe taxes. They deal with
had cancer, who would you want to      or the IRS By Yourself. If you        it every day. They’re good at it. This is
see first?                             had a serious sickness like cancer,   something you deal with once in a life-
a) Nobody. I’ll go it alone.           you would realize that your time      time (hopefully). Face it – you’re not
b) a Nurse                             might be limited. You don’t have      good at it.
c) a Doctor                            an idea how long it will be before
d) an Oncologist—                      the sickness takes over your body     These people are trained to act like
An Oncologist, right? Why? Be-         – possibly making treatment fu-       your friend and make you comfort-
cause an Oncologist is a physician     tile. Would you go it alone?          able…and then use it to get you to say
that specializes in the treatment of                                         something you’ll regret. You wouldn’t
cancer.                                If you knew you had a deadly ill-     “go it alone” with a deadly disease –
                                       ness, would you take the chance       don’t go it alone with the IRS. An at-
Along that same line of thinking,      that you’ll somehow get better all    torney who specializes in IRS prob-
let me ask you this. If you had a      on your own? I doubt it. So why       lems is specifically trained to thor-
problem with the IRS, would you        would you go it alone with the        oughly research any previous tax rul-
want to see:                           IRS? Don’t believe for a second       ing and use it to his client’s favor in a
a) Nobody. I’ll go it alone.           that reading a couple books, a        case against the IRS.
b) an Accountant                       website or a couple emails about
c) an Attorney                         “how to deal with the IRS” will       If there’s a loophole to be found in a
d) an Attorney who specializes in      prepare you to deal with the IRS      previous tax ruling or many of the
    solving IRS problems.              if you owe them money.                published IRS papers, a good attorney
                                                                             can use it to their client’s advantage
I think you can see the point I’m      These are people who make a ca-       and make the IRS work hard for their
trying to make.                        reer out of extracting money from     money.
      Andrew A. Agard                            Tel no. (808) 386-1666            
    Tax Dispute Attorney
Good To Know:...
The Good News About Installment Payments
                                                                Visit my special consumer aware-
and the Statute of Limitations.                                ness website full of insider tax infor-
                                                               mation, where you will discover that
When it comes to installment payments, it used to be
that the IRS wouldn’t agree to the arrangement if the          most folks don't know and will
taxpayer’s debt would not get paid off before the              never find out about getting rid of
statute ran out.                                               IRS problems… before they end up
But thanks to Congress, this is no longer the case.            bankrupt, divorced or in prison.
Code section 6159(a) now makes it to where the IRS
must take into consideration your entire financial                       IRS-HELP-
situation before deciding on an installment agreement.
     If You Have An IRS Problem
     Let Me Deal With It For You.                                 You Can also visit us on this Website!

      “Who Else Wants To Win A
       $250 Transferable Gift
Take my Trivia Challenge and you could win too!

This is one of my favorite sections. Each month I’ll give
you a new trivia question. The first THREE people who
call my office with the correct answer win a free $250
reduction on any IRS service I provide. (One per client,
please.) And best yet, your certificate is transferable. Use
it yourself, or give it to a family member or special friend
and help them save money. Take your best guess, then
call me at 808-386-1666.

"Sufferin' Succotash", was one of the catchphrases for this
'bird lover'. Which famous cartoon feline with a lisp
uttered these words?
                                                                   Hawaii’s Tax Doctor…
a.   Bill the Cat from the "Bloom County" cartoon strip
b.   Puss in Boots from the children's book
c.   Sylvester J. Pussycat Sr. from the "Bugs Bunny              ANDREW A. AGARD, ESQ.
     Roadrunner Show"
d.   Tom from "The Tom and Jerry Show"
                                                                 1314 South King St. Suite 504

                                                                   Honolulu, Hawaii 96814
         (Call me right now with your answer!                        Phone: (808)386-1666
                                                                       Fax: (808)521-0031

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