IRS Auditor in LA Arrested on Federal Bribery Charge

On 5/9/19, Treasury Police (TIGTA) arrested an IRS auditor, Felecia Taylor, at the IRS office in Long Beach for allegedly soliciting and accepting a $5,000 bribe to reduce the tax liability of a taxpayer who was under audit.


Taylor made an initial court appearance in United States District Court in Santa Ana and is facing a maximum sentence of 15 years. Although more realistically she is looking at between 3-5 years.


According to the press release and the affidavit in support of the criminal complaint, Taylor, who has been employed at the IRS since 1990, works as a tax compliance officer in Long Beach, where she plans and conducts examinations of individual and business taxpayers.


On May 1, a taxpayer contacted law enforcement, and stated that, at a meeting two days earlier, Taylor was “inviting a bribe” in exchange for lowering the amount owed to the IRS to $10,000, according to court documents. The taxpayer was supposed to pay the bribe to Taylor on May 7 at her Long Beach office, court papers state.


The taxpayer met with law enforcement on Tuesday, was equipped with recording devices, and was given $5,000 in cash to give to Taylor, the affidavit states. According to a recording of that meeting, Taylor provided adjusted tax records to show a reduction of the taxpayer’s liability to $10,616 as agreed and, in response, the taxpayer handed Taylor an envelope containing $5,000 in cash.


Taylor allegedly took the envelope in one hand, mouthed the word, “Five?” and placed five fingers in the air to non-verbally confirm the amount of cash the taxpayer had just given her. When the taxpayer replied, “Yes, what we agreed on, yep it’s all there,” Taylor placed the envelope on her desk and stated, “We are all done,” the affidavit states.


The case is being prosecuted by Assistant United States Attorney Jennifer Waier of the Santa Ana Branch Office. She is extremely competent and well-versed handling bribery cases involving IRS. Although the allegations sound very bad, Taylor is presumed innocent unless and until proven guilty beyond a reasonable doubt.


https://wilsontaxlaw.com

New IRS Guidance on How to Defer Capital Gains from Stock Sales Though Investment in a Qualified Opportunity Fund

The IRS recently issued proposed regulations to address gains that may be deferred when taxpayers invest in a qualified opportunity fund (QOF). This is a great opportunity for clients to defer capital gains from sale of stocks and to spur investment in designated opportunity zones.





Click to open document in a browser the proposed regulation.





The proposed regulations also withdraw and replace placeholder provisions in an earlier set of proposed regulations. These concern:





  1. The definition of "substantially all"
  2. Transactions that can trigger includible gain
  3. The timing and amount of deferred gain that is included
  4. The treatment of leased property used in the qualified opportunity zone (QOZ) business
  5. The use of QOZ business property in the QOZ
  6. The sourcing of income to the QOZ business
  7. The reasonable period for a QOF to reinvest proceeds from the sale of qualifying assets

In
addition, within a few months the IRS expects to address administrative rules
for a QOP that fails maintain the required 90 percent investment standard, as
we well information reporting requirements.





Finally,
the IRS expects to revise Form 8996, Qualified Opportunity Fund, for 2019 tax
years and subsequent years. These revisions may require additional information,
including the employer identification number (EIN) for the QOF business, and
the amounts invested by QOFs and QOF businesses in particular QOZs.





Substantially All” for QOZ Business





The 2018
regs provided that a trade or business satisfies the "substantially
all" test for a QOZ business if at least 70 percent of its tangible
property is qualified opportunity zone business property. The new proposed regs
generally extend this 70-percent threshold to the "substantially all"
tests for use. However, in the holding period context, the "substantially
all" threshold is 90 percent.





Original Use of Purchased Tangible Property





The
proposed regulations generally provide that the "original use" of
tangible property acquired by purchase by any person commences on the date when
that person or a prior person:





  1. first places the property in service in the qualified opportunity zone for purposes of depreciation or amortization; or
  2. first uses the property in the qualified opportunity zone in a manner that would allow depreciation or amortization if that person were the property’s owner.

Used
tangible property will satisfy the original use requirement with respect to a
QOZ so long as the property has not been previously used (that is, has not
previously been used within that QOZ in a manner that would have allowed it to
depreciated or amortized) by any taxpayer





In
addition, a building or other structure that has been vacant for at least five
years before being purchased by a QOF or QOZ business satisfies the original
use requirement. Improvements made by a lessee to leased property satisfy the
original use requirement and are considered purchased property for the amount
of the unadjusted cost basis of the improvements.





Land
can be treated as QOZ business property only if it is used in a trade or
business of a QOF or QOZ business. The holding of land for investment does not
give rise to a trade or business, and the land cannot be QOZ business property.
Anti-abuse rules determine whether unimproved land can be qualifying property.
However, other purchased real property generally must be substantially
improved, as determined on an asset-by-asset basis.





Leased Tangible Property in QOZ





Leased
tangible property may be QOZ property if:





  1. the lease is entered into after 2017, and
  2. substantially all of the property’s use is in a QOZ during substantially all of the lease period.

However,
the first-use requirement does not apply to leased tangible property. The
leased property can generally also be acquired from a related person, though
several conditions apply. The proposed regs also provide methods for valuing
the leased property.





QOZ Businesses





The
proposed regs:





  1. provide that in determining whether a substantial portion of intangible property of a QOZ is used in the active conduct of a trade or business, a substantial portion is at least 40 percent;
  2. address real property that straddles a QOZ;
  3. provide three safe harbors and a facts-and-circumstances test for determining whether a corporation or partnership derives at least 50 percent of its gross income from the active conduct of a qualified business;
  4. defined "trade or business" by reference to Code Sec. 162, except that the ownership and operation (including leasing) of real property used in a trade or business can also be the active conduct of a trade or business; and
  5. provide a safe harbor for working capital.

Other QOZ, QOF and QOZ Business Rules





The
proposed regs also address:





  1. Section 1231 gains
  2. relief with resect to the 90 percent asset test, including relief for newly contributed assets and QOF reinvestments
  3. the amount of an investment for purposes of the deferral election
  4. inclusion events, the timing on basis adjustments, includible amounts, and special rules for partnerships and S corporations
  5. gifts and bequests
  6. exceptions for disregarded transfers and some non-recognition transactions
  7. distributions and contributions
  8. consolidated return provisions
  9. holding periods and tacking rules
  10. anti-abuse rules
  11. special rules for Indian tribes and tribally leased property.
The Orange County Tax Attorneys at Wilson Tax Law Group have experience in qualified opportunity fund (QOF) and qualified opportunity zone (QOZ) businesses.   If you would like to schedule a consultation to discuss or have questions, you can reach the Wilson Tax Law Group at 949-397-2292 (Newport Beach Office) or 714-463-4430 (Yorba Linda Office).

Feeling Stressed its Tax Day - No Worries - File a Return Extension

Anyone can request an automatic tax-filing extension. If fact some people get extra time without asking. The IRS estimates that more than 14.6 million taxpayers will get an automatic extension this filing season, either by filing a form or making an electronic tax payment. But some taxpayers, such as disaster victims, those serving in a combat zone and Americans living abroad, get more time, even if they don’t ask for it. Just remember the extension filing only applies to the return due not - not the payment date. The tax payment date cannot be extended and it remains April 15th. To request more details on each of these special tax-relief provisions concerning automatic extensions or the payment due date contact Wilson Tax Law Group, APLC or call us at 949-397-2292.

Cali Resident Guilty Stealing Homeless IDs and Using Them to Seek Fraudulent Tax Refunds

The DOJ Tax Division issued the following:

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Tuesday, June 27, 2017

California Resident Pleads Guilty to Stealing Homeless Individuals’ IDs and Using Them to Seek Fraudulent Tax Refunds

Obtained Personal Information by Falsely Representing to Unemployed People that Could Get them Government Assistance


A California resident pleaded guilty yesterday to conspiring to file false claims for tax refunds, submitting false claims for tax refunds, mail fraud and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Brian J. Stretch for the Northern District of California.

According to documents and information provided to the court, Diep Vo aka Nancy Vo, 74, conspired with codefendant Trong Nguyen aka John Nguyen, to use the IDs of homeless and unemployed individuals in the San Jose, California area to file fraudulent claims for refunds with the Internal Revenue Service (IRS). Vo went to homeless shelters and halfway houses and falsely represented to individuals that she could get them money from a government program designed to assist people who had not worked in previous years. Vo convinced people to write down their names and social security numbers and to sign blank income tax returns. Vo and Nguyen then falsified the signed returns including bogus income and income tax withheld amounts and sought fraudulent refunds from the IRS. Vo and Nguyen directed the refund checks to private mailboxes they controlled. Nguyen previously pleaded guilty to submitting and conspiring to submit false claims for refund.

Sentencing is scheduled for Nov. 14. Vo faces a statutory maximum sentence of five years in prison on each count of conspiring to file false claims and submitting false claims for refund, 20 years in prison for each count of mail fraud and a mandatory minimum sentence of two years in prison for aggravated identity theft. Vo also faces a period of supervised release, restitution and monetary penalties. Nguyen is scheduled to be sentenced on July 25.

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS Criminal Investigation and the U.S. Postal Inspection Service, who conducted the investigation, and Assistant U.S. Attorney Thomas Newman and Trial Attorney Gregory Bernstein of the Tax Division, who are prosecuting the case.

****

Shared on behalf of Wilson Tax Law Group, APLC.    If you require assistance with a tax matter, please contact Joseph P. Wilson, Esq. at 949-397-2292.

Cali Resident Guilty Stealing Homeless IDs and Using Them to Seek Fraudulent Tax Refunds

The DOJ Tax Division issued the following:

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Tuesday, June 27, 2017

California Resident Pleads Guilty to Stealing Homeless Individuals’ IDs and Using Them to Seek Fraudulent Tax Refunds

Obtained Personal Information by Falsely Representing to Unemployed People that Could Get them Government Assistance

A California resident pleaded guilty yesterday to conspiring to file false claims for tax refunds, submitting false claims for tax refunds, mail fraud and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Brian J. Stretch for the Northern District of California.

According to documents and information provided to the court, Diep Vo aka Nancy Vo, 74, conspired with codefendant Trong Nguyen aka John Nguyen, to use the IDs of homeless and unemployed individuals in the San Jose, California area to file fraudulent claims for refunds with the Internal Revenue Service (IRS). Vo went to homeless shelters and halfway houses and falsely represented to individuals that she could get them money from a government program designed to assist people who had not worked in previous years. Vo convinced people to write down their names and social security numbers and to sign blank income tax returns. Vo and Nguyen then falsified the signed returns including bogus income and income tax withheld amounts and sought fraudulent refunds from the IRS. Vo and Nguyen directed the refund checks to private mailboxes they controlled. Nguyen previously pleaded guilty to submitting and conspiring to submit false claims for refund.

Sentencing is scheduled for Nov. 14. Vo faces a statutory maximum sentence of five years in prison on each count of conspiring to file false claims and submitting false claims for refund, 20 years in prison for each count of mail fraud and a mandatory minimum sentence of two years in prison for aggravated identity theft. Vo also faces a period of supervised release, restitution and monetary penalties. Nguyen is scheduled to be sentenced on July 25.

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS Criminal Investigation and the U.S. Postal Inspection Service, who conducted the investigation, and Assistant U.S. Attorney Thomas Newman and Trial Attorney Gregory Bernstein of the Tax Division, who are prosecuting the case.

****

Shared on behalf of Wilson Tax Law Group, APLC.    If you require assistance with a tax matter, please contact Joseph P. Wilson, Esq. at 949-397-2292.

New Legislation to Reform the California Tax Appeal System

In light of a number of problems at the California State Board of Equalization (BOE), the California General Assembly has passed legislation that, if enacted, would strip the BOE of all but its constitutionally mandated tax functions. In addition, the legislation would create a new Department of Tax and Fee Administration (DTFA) and a new Office of Tax Appeals (OTA) to assume between the two of them all the other current duties, powers, and responsibilities of the BOE. Some of the changes would be operative as early as July 1, 2017.
Operational Culture
According to legislative findings in the bill, "the board’s operational culture severely impacts its ability to report accurate and reliable information to the public, the administration, and the Legislature."The findings enumerated specific problems with the current board, including:
  • inappropriate intervention by board members in administrative and appeal-related activities;
  • numerous complaints concerning attempts by the board members and their staffs to influence audits, investigations, and collection activities by civil service employees;
  • exertion of undue influence by board members and their staffs that handicapped employees in their efforts to fairly apply the law;
  • routine interference by board members or their staffs that effectively eliminated the ability of the executive director and upper management to operate the organization; and
  • significant errors in the allocation of sales and use tax revenue due to the board’s failure to focus on its core responsibilities.
If signed by the Governor, the legislation would cut back the duties, powers, and responsibilities of the board to various property tax assessment and equalization functions and assessment of taxes on insurers authorized by Article XIII of the state constitution; assessment and collection of excise taxes on alcohol pursuant to Article XX of the state constituted; and the duty to adjust the rate of the motor vehicle fuel tax for the 2018-19 fiscal year (residual responsibilities).
In relation to administrative matters, members of the BOE will not be permitted to appoint, remove, discipline, or issue orders to any BOE employee. BOE members are also prohibited from interfering with or influencing the process of the BOE’s or the DTFA’s legislative analyses, or any other form of technical assistance requested by the governor or the Legislature.
Department of Tax and Fee Administration
Operative July 1, 2017, the DTFA would be the successor to the duties, powers, and responsibilities of the BOE, except for the its residual responsibilities and its ability to conduct appeals hearings. Generally, unless the context clearly requires otherwise, whenever any reference to the BOE appears in any statute, regulation, contract, or other code, with respect to the functions transferred to the DTFA, it will be deemed to refer to the DTFA.
Office of Tax Appeals
Beginning January 1, 2018, the OTA would be the successor to all of the duties, powers, and responsibilities of the BOE necessary or appropriate to conduct appeals hearings, except as those powers relate to the BOE’s residual responsibilities. For purposes of this change, “appeal” means:
  • various types of petitions,
  • an administrative protest,
  • a claim for refund,
  • an appeal from an action by the Franchise Tax Board (FTB),
  • an application, including an application for administrative hearing, and
  • any other item that may be scheduled for a hearing, including requests for relief of taxes, fees, interest, or penalties.
Also beginning January 1, 2018, the BOE would not be permitted to conduct appeals, except as they relate to its residual responsibilities.
A.B. 102, Laws 2017, as sent to enrolling June 15, 2017

Wilsontaxlaw.com  


New Legislation to Reform the California Tax Appeal System

In light of a number of problems at the California State Board of Equalization (BOE), the California General Assembly has passed legislation that, if enacted, would strip the BOE of all but its constitutionally mandated tax functions. In addition, the legislation would create a new Department of Tax and Fee Administration (DTFA) and a new Office of Tax Appeals (OTA) to assume between the two of them all the other current duties, powers, and responsibilities of the BOE. Some of the changes would be operative as early as July 1, 2017.
Operational Culture
According to legislative findings in the bill, "the board’s operational culture severely impacts its ability to report accurate and reliable information to the public, the administration, and the Legislature."The findings enumerated specific problems with the current board, including:
  • inappropriate intervention by board members in administrative and appeal-related activities;
  • numerous complaints concerning attempts by the board members and their staffs to influence audits, investigations, and collection activities by civil service employees;
  • exertion of undue influence by board members and their staffs that handicapped employees in their efforts to fairly apply the law;
  • routine interference by board members or their staffs that effectively eliminated the ability of the executive director and upper management to operate the organization; and
  • significant errors in the allocation of sales and use tax revenue due to the board’s failure to focus on its core responsibilities.
If signed by the Governor, the legislation would cut back the duties, powers, and responsibilities of the board to various property tax assessment and equalization functions and assessment of taxes on insurers authorized by Article XIII of the state constitution; assessment and collection of excise taxes on alcohol pursuant to Article XX of the state constituted; and the duty to adjust the rate of the motor vehicle fuel tax for the 2018-19 fiscal year (residual responsibilities).
In relation to administrative matters, members of the BOE will not be permitted to appoint, remove, discipline, or issue orders to any BOE employee. BOE members are also prohibited from interfering with or influencing the process of the BOE’s or the DTFA’s legislative analyses, or any other form of technical assistance requested by the governor or the Legislature.
Department of Tax and Fee Administration
Operative July 1, 2017, the DTFA would be the successor to the duties, powers, and responsibilities of the BOE, except for the its residual responsibilities and its ability to conduct appeals hearings. Generally, unless the context clearly requires otherwise, whenever any reference to the BOE appears in any statute, regulation, contract, or other code, with respect to the functions transferred to the DTFA, it will be deemed to refer to the DTFA.
Office of Tax Appeals
Beginning January 1, 2018, the OTA would be the successor to all of the duties, powers, and responsibilities of the BOE necessary or appropriate to conduct appeals hearings, except as those powers relate to the BOE’s residual responsibilities. For purposes of this change, “appeal” means:
  • various types of petitions,
  • an administrative protest,
  • a claim for refund,
  • an appeal from an action by the Franchise Tax Board (FTB),
  • an application, including an application for administrative hearing, and
  • any other item that may be scheduled for a hearing, including requests for relief of taxes, fees, interest, or penalties.
Also beginning January 1, 2018, the BOE would not be permitted to conduct appeals, except as they relate to its residual responsibilities.
A.B. 102, Laws 2017, as sent to enrolling June 15, 2017

Wilsontaxlaw.com  


Test YouTubeDdiscussion

Lorem Ipsum  is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever...