Webster, Mass., man charged with killing wife shortly after IRS agents seized car for taxes

April 8, 2011 by

THE ASSOCIATED PRESS
March 23, 2011

DUDLEY, Mass. — A Webster man charged with killing his wife about an hour after two IRS agents seized their car for nonpayment of taxes has been ordered held without bail.

William Freudenthal (FROY’-den-thal) pleaded not guilty to second-degree murder Wednesday in Dudley District Court.

Worcester District Attorney Joseph Early Jr. says police responded to the 50-year-old Freudenthal’s home Tuesday when he became angry at the IRS agents.

Police returned less than an hour later after getting two 911 hang-up calls from the home. Officers found Jennifer Freudenthal on the bathroom floor with head and neck injuries. She was pronounced dead at a hospital.

William Freudenthal’s lawyer called the death an accident.

Police say they have gone to the home several times for alleged domestic violence incidents.

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Lots of Big Stars Are in Big Trouble With the Tax Man

March 21, 2011 by

By Lindsay Carlton
Published March 21, 2011|FoxNews.com

March 26, 2010: Al Pacino poses for a portrait in Beverly Hills, Calif.
Despite their high-priced tax attorneys and mega-millions, big stars can find themselves in big trouble come tax time.

Take Hollywood director Martin Scorsese. He was recently nailed with a $2.85 million bill for unpaid taxes. Scorsese was charged for past-due tax and related interest penalties. Although Scorsese’s spokeswoman Leslee Dart says the entire amount is now paid in full and that he has no current IRS debts, sources say the Oscar-winning director’s tax woes are due to his dealings with celebrity accountant Kenneth Starr. Starr was jailed for seven and a half years for a $33 million ponzi scheme, and has duped other superstars in his corrupt plots. He scammed Hollywood heavyweights such as Uma Thurman, Lauren Bacall and Al Pacino, to name a few.

Pacino allegedly failed to pay taxes for two years, a bill for $169,143 in 2008 and $19,140 in 2009, totaling $188,283. Anyone who would stiff this “Godfather” star out of $200,000 might be sleeping with the fishes too, but luckily for Al Pacino, the IRS doesn’t handle their business the same way the mob does. Pacino poured the blame on Starr, his business manager and close friend for years. The money hungry financier apparently used a lot of his fraudulent earnings to play sugar-daddy to his younger wife, ex-pole dancer Diane Passage, who enjoyed a lavish lifestyle. “Managers can be very helpful, but many are not skilled in the area of tax planning and some are outright greedy when given control of celebrities finance,” said Ray Lucia, a certified financial planner.

A spokesperson for Pacino said the “Scarface” actor is working to resolve the situation as soon as possible with a new financial manager.

Another Hollywood cash cow who skipped his IRS bill is Jennifer Lopez’s husband, Marc Anthony. The Latin crooner owes $3.4 million for unpaid taxes on his Long Island mansion. Anthony has a history of running from the tax man. In 2007 he failed to pay taxes on his $15 million income over a five-year-period and ended up paying $2.5 million in back taxes. One might assume that such a power couple would have a better handle on their finances, but some tax attorneys aren’t surprised. “They live in a world where everyone gives them more and more leeway and slack — and they slowly develop an attitude of being above it all,” said Doug Burns, a federal prosecutor who has prosecuted dozens of tax fraud cases.

One pop star even sang a song about paying bills, the aptly titled “Bills Bills Bills,” but then forgot to fork up the cash herself. Former Destiny’s Child singer Kelly Rowland owes $98,634 in back taxes. The government filed a lien against her on Nov. 8, according to the Detroit News. The songstress hasn’t had much success since splitting from the Beyonce Knowles-led girl group. She also recently parted ways with her long-time manager and Beyonce’s father, Matthew Knowles. “Celebs who are attending to other details in their lives may brush taxes aside for later, but by then it’s too late,” said CelebTV.com host Kelli Zink.

“Survivor” winner Richard Hatch has had his fair share of tax trouble. The reality star spent three years in jail for failing to pay taxes on the $1 million prize money he won on the hit show. Hatch is heading back to the slammer for not settling a tax bill that is now reportedly up to $2 million. Hatch is currently starring in Donald Trump’s “Celebrity Apprentice” show. Although the episodes of the series have already been filmed, he will miss the live finale in May while he finishes his sentence behind bars. Along with his prison term, Hatch will remain under supervision for 26 months, and 25 percent of his wages will be garnished to pay back the IRS.

Joe Francis, founder of “Girls Gone Wild,” also spent some time behind bars for his tax tribulations and says the IRS targets celebrities every year around tax day. To avoid glitches in your taxes, Francis recommends Hollywood newcomers hire reputable business managers and get references from their other clients. “Good financial managers are helpful, ones like Bernie Madoff are awful. I was young, I was making a lot of money,” Francis said. “You trust people like lawyers and accountants. I didn’t even sign my own tax return. I didn’t even question it.”

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Lil Jon Faces Tax Trouble

February 1, 2011 by

Several ”Celebrity Apprentice” Stars Owe Feds Money
6:00AM ET January 19th, 2011
Contributor : Hip Hop Blog Staff

There appears to be a legitimate reason for so many past-their-prime celebrities appearing on reality TV–and it’s not just to raise their profile or to gain a little publicity. Several celebs clamor to reality shows for one simple reason: money. Several of the contestants on this season’s “Celebrity Apprentice,” for example, have serious tax issues with the federal and/or state government.

The Detroit News compiled a list of “Celebrity Apprentice” cast members who owe Uncle Sam, and Star Jones ($356,991), LaToya Jackson ($28,252 in Nevada), Gary Busey ($645,382 in California), Dionne Warwick ($2.2 mil in California) and Jose Canseco ($320,000 in California) are all mentioned for owing back taxes.

Rapper Lil Jon faces a $638,937 lien the IRS filed against him in South Carolina back in 2008.

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Oprah Hates Writing Checks to the IRS

January 30, 2011 by

Chicago (January 21, 2011)
By Michael Cohn
accountingtoday.com

Oprah Winfrey told Piers Morgan that the most difficult check she has to write each year is for the Internal Revenue Service, and she usually needs some tequila from her accountants when she signs it.

Winfrey admitted to Morgan during the debut episode Monday evening of the CNN talk show he is taking over from Larry King that she only signs checks for amounts over $100,000 nowadays. Winfrey launched her new cable TV network, the Oprah Winfrey Network, or OWN, earlier this month. But she still has “several hundred” checks to sign for over $100,000.

“It would knock your socks off,” she told Morgan. “Millions are going out.”

Morgan asked if that was painful. “The most pain I feel — and my accountants will tell you this — is every time I write a check to the IRS, it’s a ceremony. For years they came in with wine. Now they come in with tequila. It’s a tequila-signing ceremony.”

Morgan asked her what was the most painful check she ever had to write to the IRS, but Winfrey cannily ducked the question, teasing Morgan, “You’re good. You think I’m going to give you the number. No, no, no, no, no.”

Morgan noted that Forbes magazine estimates that Winfrey is worth $2.7 billion, and asked if the figure was accurate. She responded, “I knew you were going to go there sooner or later. I’m not sitting around counting it.” However, she added that she knows how much she’s worth “because I already had counted it.”

Morgan followed up by asking Winfrey about her philanthropic endeavors, which include the Oprah Winfrey Leadership Academy for Girls, a school she runs in South Africa for economically disadvantaged young women. Morgan noted that Winfrey reportedly has given away over $300 million to various charities, and Winfrey corrected him, saying she knew it was more than that amount.

He asked if she knew how much she has given away, and she replied, “No, I really don’t, but I know it’s more than $300 million. I have this school and it’s ongoing and I’m responsible for all of these girls and them getting an education, and I pay for every single thing and I think that the charitable work that you do — and when I’m gone everything that I have is going to go to charity because I don’t have children and I believe that that’s what you should do, that that’s how you should live your life. To whom much is given, much should be given back. To me, the money, it’s certainly a wonderful thing, but it is in direct proportion to how you’re able to bless yourself and how you bless others with it.”

Asked whether money can buy happiness, Winfrey responded, “It can certainly pave the way for it.”

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Is An IRS Audit The Last Word? Not Necessarily!

January 15, 2011 by

Audit Appeals

Once you receive the results of an IRS audit – which generally includes a large bill that you have to pay – you have three options.  You can pay the bill, request an informal review with the auditor’s group manager, or file a formal request for appeal.

If you went through the initial audit without help or representation, NOW is the time to get professional help. Have a licensed tax professional review your situation.  There are many factors that go into deciding whether or not an audit stands or is overturned upon appeal.

Bear in mind that IRS auditors are trained to get information out of the taxpayer. The tactics they use are often frightening, especially to the taxpayer who doesn’t know what rights and protections they have.  An IRS auditor is not going to volunteer the information that their decisions can be questioned – or even overturned!

Appealing An IRS Audit Successfully

Appealing an IRS audit is difficult, but it is not impossible.  Prepare yourself for success by having competent, professional tax assistance from an audit accountant, licensed tax professional, or other expert. The vast majority of audits that are overturned or altered significantly upon appeal have a tax professional involved.  An individual taxpayer, particularly one with no tax experience, is at a significant disadvantage when they try to appeal on their own.

The primary advantages of having a tax professional represent you in appealing an IRS audit is that it introduces a significant degree of separation between you and the IRS as well as having someone with years of experience in dealing with the IRS on your side.  The IRS will be talking to your tax accountant, not you.  The phone calls will go to the tax professional’s office – not your home!  This eliminates stress and gives you the peace of mind that the problem is being handled. Your tax professional’s experience will also get you a better result than you could have gotten on your own since he knows how the IRS operates, what your rights are, and how to maneuver through the IRS maze.

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IRS Has Problems Identifying Prisoner Tax Fraud

January 3, 2011 by

Washington, D.C. (January 3, 2011)

By Michael Cohn from accountingtoday.com

Significant problems remain with efforts by the Internal Revenue Service to identify and prevent tax refund fraud by prisoners after the passage of a 2008 law aimed at curbing such issues, according to a new government report.
The report, by the Treasury Inspector General for Tax Administration, found that despite the passage of the Inmate Tax Fraud Prevention Act of 2008, refund fraud committed by prisoners is increasing at a significant rate. The number of fraudulent prisoner tax returns identified by the IRS has more than doubled from 18,103 tax returns in calendar year 2004 to 44,944 tax returns in calendar year 2009. Fraudulent refunds claimed rose from $68.1 million to $295.1 million during the same period.

“More than two years ago, Congress gave the IRS the authority to share tax information with the Federal Bureau of Prisons,” said Senate Finance Committee ranking member Chuck Grassley, R-Iowa, in a statement. “The IRS and the Federal Bureau of Prisons still don’t have an agreement in place to share information. Meanwhile, the number of inmates’ false returns and refunds continues to rise. This signals that prisoner tax fraud is a low priority for the federal government. The agencies need to take action and correct that impression. While they wait, taxpayers are picking up a growing tab for prisoner tax fraud.”

TIGTA found that, as of October 2010, the IRS had not completed the required agreements to allow the IRS to disclose prisoner tax return information to prison officials. As a result, no information has been disclosed to either the Federal Bureau of Prisons or State Departments of Corrections.

In addition, the Calendar Year 2009 Report to Congress on prisoner fraud is incomplete. The report stated the IRS identified 44,944 false or fraudulent prisoner tax returns during calendar year 2009. However, the processes the IRS uses to identify prisoner tax returns may result in the IRS understating the amount of prisoner fraud. Finally, TIGTA’s review of the process used by the IRS’s Criminal Investigation Division to compile the 2009 prisoner data file identified a lack of managerial oversight to ensure the accuracy and reliability of this file.

TIGTA recommended that the IRS work with the Treasury Department to seek legislation to extend the period of time the IRS has to disclose prisoner tax return data to the Federal Bureau of Prisons and state prison officials. TIGTA also recommended that the commissioner of the IRS’s Wage and Investment Division revise the annual report to provide Congress with a complete assessment of potential prisoner fraud. TIGTA said the IRS should ensure that all tax returns filed by prisoners are processed through the Electronic Fraud Detection System and receive a prisoner indicator. The report also recommended that the IRS revise prisoner filters to validate the wages and withholding associated with prisoners incarcerated for a year who filed tax returns claiming a refund. The IRS should also develop a process to assess the reliability (accuracy and completeness) of data received from federal and state prisons, TIGTA suggested.

The IRS agreed with two of TIGTA’s five recommendations and partially agreed with two recommendations. The IRS did not indicate its agreement or disagreement with one of the recommendations, on providing Congress with a complete assessment of potential prisoner fraud by revising the annual report to include the total number of tax returns filed by prisoners, number selected for fraud screening, and the number verified as false or fraudulent.

However, the IRS noted hat it would continue to report to Congress all of the prisoner information that is required to be reported by the Inmate Tax Fraud Prevention Act of 2008, such as the number of false and fraudulent returns associated with prisoner filings. In addition, the IRS said it would respond to future Congressional requests pertaining to prisoner- related fraud.

The new report is available here.

TIGTA issued a report last September saying the IRS needs to subject tax returns filed by prisoners to greater scrutiny for fraud. The report was largely about how expanded access to wage and withholding information could improve the identification of fraudulent tax returns, but it noted that the majority of tax returns the IRS identifies as being filed by prisoners are not being sent to screening to assess fraud potential.

TIGTA’s review identified 253,929 (88 percent) of the 287,918 tax returns filed by a prisoner as of March 24, 2010, were not selected for screening. Of those tax returns not screened, 48,887 individuals had no wage information reported to the IRS by employers.

These 48,887 prisoners claimed refunds totaling more than $130 million including Earned Income
Tax Credit claims of $78.5 million. Some of these refunds may have been stopped by other compliance activities. For example, TIGTA determined that the IRS prevented the issuance of nearly $18.1 million in EITC claims for 4,532 of the 48,887 prisoner tax returns.

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No Pardon for Billy the Kid: What About YOUR Tax Problems?

December 31, 2010 by

New Mexico Governor Bill Richardson has just announced that he will not pardon Billy the Kid, citing a lack of conclusiveness and historical ambiguity surrounding the pardon allegedly promised to Billy by then governor Lee Wallace.   The value of a pardon to Billy is of some question, as he has been dead for quite a while now. If he was hoping for official state forgiveness from some spectral perspective, surely he is disappointed but not surprised — many commentators had said the pardon didn’t have a ghost of a chance.

Massachusetts Tax Help

Why did the effort to pardon Billy the Kid fall apart?  Some of the issue is the lack of clear documentation about what happened around Billy’s case.  A lack of documentation can be a big problem for tax payers as well: without the right records and proof of your income, expenses, and more, it’s difficult to defend yourself against allegations from the IRS and state tax authorities.  If they say you’re not in compliance, and you have no proof to the contrary, are you out of options?

Did you know that the IRS keeps records about every taxpayer?  The Freedom of Information Act, passed by Congress in 1966 and updated three times since, entitles you to a copy of the file the IRS has on you.  Getting a copy of this file can be essential in helping you determine the best way to resolve your tax issues.  Professionals such as a tax CPA or income tax attorney request and access these records all of the time to best protect their client’s interests.  You can request a copy of your file yourself, but that request from an individual taxpayer can attract unwanted attention.  Interpreting the IRS’s files is difficult and requires specialized knowledge.

You deserve qualified, experienced professional assistance with your tax problems.  You have a right to know the information the IRS keeps about you and your family!  There may be some unanswered questions about Billy the Kid’s history with the government — but you don’t need to have any unanswered questions yourself!

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Actor Wesley Snipes reports to prison to begin sentence

December 30, 2010 by
From Michael Martinez, CNN
December 9, 2010 1:28 p.m. EST
(CNN) — Actor Wesley Snipes reported to a medium-security Pennsylvania prison Thursday to begin a three-year sentence for failing to file tax returns.

The 48-year-old actor is now incarcerated in McKean Federal Correctional Institution in Lewis Run, officials said.

Snipes’ attorney said he is appealing his client’s misdemeanor convictions for not filing tax returns in 1999, 2000 and 2001.

Snipes was acquitted of felony charges.

Snipes is nervous, he said, but hopeful that his prayers will be answered.

“We still have prayers out there. We still believe in miracles. So don’t send me up the river yet,” Snipes said in an interview on CNN’s “Larry King Live” Tuesday night.

The actor conceded he was uneasy about losing his freedom if his appeal to the U.S. Supreme Court fails.

“I think any man would be nervous if his liberty is at stake,” Snipes said. “I’m disappointed that the system seems not to be working for me in this situation.”

Prosecutors said Snipes earned $40 million since 1999 but had filed no returns and had been involved in a tax resisters group.

Snipes disputed such involvement and said that the failure to file was his advisers’ fault.

“This is another thing that has been misreported: It has been framed that I was a conspirator and that I was an architect in a scheme by an organization that has been characterized as tax protesters,” Snipes said. “The press hasn’t reported that I was a client of people who I trusted (who) had knowledge and expertise in the areas of tax law that would protect my interests.”

Snipes is best known for his roles in the “Blade” action films, the comedy film “White Men Can’t Jump” and the drama “Jungle Fever.”

In February, a jury convicted Snipes on the misdemeanor charges, but he was acquitted of more serious felony charges of tax fraud and conspiracy. Jurors accepted his argument that he was innocently duped by errant tax advisers.

Defense attorneys in court documents suggested that to sentence Snipes harshly would be to disregard the jury’s verdict.

But prosecutors, in their sentencing recommendation, said the jurors’ decision “has been portrayed in the mainstream media as a ‘victory’ for Snipes. The troubling implication of such coverage for the millions of average citizens who are aware of this case is that the rich and famous Wesley Snipes has ‘gotten away with it.’ In the end the criminal conduct of Snipes must not be seen in such a light.”

Snipes suggested he was unfairly singled out by prosecutors.

“It does seem to be rather unusual and rather bizarre when you had a prosecutor come into the sentencing and say that this is the biggest tax trial in the history of the IRS,” Snipes said. “I think there is a certain amount of selectivity going on here.”

Snipes indicated he was disturbed by some public comments that he was receiving “just punishment.”

“It’s been presented as though I’m worthy of this punishment,” Snipes said. “I’ve been a law-abiding citizen ever since I grew up in the Bronx, New York.”

One juror, Frank Tuttle, gave Larry King Live a written statement that three other jurors had made up their mind that Snipes was guilty before the trial began.

The jury’s verdict was a compromise between those jurors who thought Snipes was guilty and those who didn’t, Tuttle said in the statement.

“That’s when a deal was made to find him guilty on the failure to file taxes and not guilty on the federal tax evasion charges,” Tuttle said in the statement. “We did not think he would go to jail.”

Snipes’ attorney, Daniel R. Meachum, said neither he nor Snipes had any involvement in preparing that juror’s statement to Larry King Live, saying the show’s producers obtained it on their own.

“We on the defense team never suggested that the media reach out to any of the jurors,” Meachum said.

Snipes contended that some media accounts of his trial have distorted public perceptions.

“There have been some egregious and very malicious efforts to report the facts of this case,” Snipes said. “I was never charged with tax evasion. I’ve never been a tax protester.”

Snipes said he has paid his taxes.

“They claimed that there was a certain number that was owed and that number has been all over that place. The press has escalated it and changed it a number of times. But we think we are fully compliant with what was owed,” Snipes said.

CNN’s Jessica Thill contributed to this story.

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Val Kilmer — Another $500,000 in Tax Problems

December 30, 2010 by

12/28/2010 9:30 AM PST by TMZ Staff  from tmz.com

Val Kilmer is back on Uncle Sam’s bad side — the “Iceman” reportedly left the IRS in the cold … to the tune of $500,000 in unpaid federal taxes — and now it is out to collect.

According to DetNews.com, the Internal Revenue Service filed a $498,165 lien against Kilmer on Nov. 30 in New Mexico … where the actor owns a multi-million dollar ranch.

It’s not the first time Kilmer’s had issues with taxes — the IRS had filed a lien against him for $538k back in 2009 … but Val reportedly settled that debt a few months ago.

So far, no comment from Val’s people.

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EXCLUSIVE: Financial Trouble Cooking For Chef Gordon Ramsey ~~ $ 1 Million in Tax Liens

December 30, 2010 by
Posted on RadarOnline.com on Dec 29, 2010 @ 06:10AM  
 
Gordon Ramsay, the embattled TV chef and restaurateur, has nearly $1 million in tax liens against him, RadarOnline.com has learned exclusively.
According to court documents we uncovered, there are two outstanding New York State tax warrants against Ramsay. The latest one was filed last month and is for a whopping $419,051.

Back in July, another warrant was filed for $513,003. That’s $932,054 if you want an exact count, as we’re sure Ramsay’s creditors do.

Chef Ramsay’s company suffered financial setbacks in the last two years as the recession hit his rapidly expanding restaurant empire and he fired his CEO father-in-law in a bitter family feud.

Ramsay sold his flagship New York Restaurant, The Gordon Ramsay at The London, but remains a consultant.

The very popular TV chef, famous for his hot tempered personality, earned 12 Michelin stars for his many restaurants and was one of only three chefs in the UK to have three Michelin stars at one time.

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