Having Tax Trouble Does Not Make You A Bad Person!

You don’t often hear about the emotional side of dealing with the IRS or state tax authorities — yet the truth is that our emotions play a huge role in creating and resolving tax issues! There are any number of reasons that people get into difficulties — from not understanding what has to be filed or paid, to not knowing that someone you trusted failed to perform tasks they said they were going to, to plain old human error.

Guess what? None of that makes you a bad person. Many times, it’s the burden of shame, guilt, or distress that keeps us from acting — yet these emotional roadblocks actually make the problem worse, not better. Every day we don’t act to resolve a tax situation is a day that the IRS or state tax departments counts against us.

At Matthew J. Previte CPA PC, we’re not going to judge you. We aren’t going to tell you you’re a bad person because you didn’t file your taxes on time. It happens. A very, very small percentage of tax issues are caused by people who willfully intended to deceive the tax authorities or avoid paying — the vast majority of individuals find themselves handling situations that got out of control, one simple mistake snowballing into the next until they can’t see the way out.

We know the way out. We’ll work with you to find a way to resolve your tax issues with the IRS. We understand that life happens and that the important thing is NOT assigning blame — it’s fixing the problem in the fastest, most efficient way possible to give you peace of mind and remove a huge stress from your life.

Put down that guilt. Put down the shame. You don’t need to keep carrying it anymore: you can call us and start solving your tax problems today!

Do You Have Unfiled Tax Returns?

Gain Peace of Mind – No Matter How Late You Are

People fail to file their tax returns for all sorts of reasons. Regardless, failing to file your tax returns is a criminal offense. Citizens who do not file can be prosecuted and punished with potential jail time, one year for each year not filed. Why risk potentially losing your freedom for failing to file your tax returns!
Sometimes the IRS will file returns for you after they have repeatedly requested you file your returns. When the IRS files your returns for you, they are filed in the best interest of the government, usually with little or none of the deductions you are entitled to. You have the right to file an original return no matter how late it is! If you haven’t filed in a few years or many years, we can help, no matter how late your returns are. Let us give you the peace of mind you deserve by helping you get in compliance with the law.

Call us today at (508) 655-1500 to schedule an appointment with one of our licensed tax professionals and soon you will be sleeping like a baby!

Unfiled Tax Returns: Getting Help When You Don’t Know Where To Start

“I got a notice from the IRS about my unfiled taxes. It says I need to file immediately. But I don’t even know where to start,” Joanne, who lives in West Roxbury, MA, said. “I don’t know where my W-2s are; the restaurant I worked at then is out of business now. What am I going to do?”

Unfiled Tax Returns: Time is of the Essence

“The one thing you don’t want to do when you have unfiled tax returns is wait,” said Matthew J. Previte, a Massachusetts CPA who specializes in tax problems. “The longer you wait, the harder it becomes for someone like me to help you. After 10 years, it becomes impossible to get certain information from the IRS. But if you’re in that window, it’s still possible for a tax professional to get the information you need from the IRS.”

“Filing your return is important,” Previte notes, “because if you don’t file, the IRS will file a return for you. When the IRS creates what is known as a Substitute For Return (SFR), they’re not acting in your best interest. They don’t look for the deductions you’re eligible for, or identify the most favorable filing status for your situation. They’re just after their money!”

Unfiled Tax Returns: You Deserve Help

Don’t try filing your late tax returns on your own. You deserve the help of an experienced tax professional who will prepare an accurate return that helps you minimize your tax obligation. Why pay more taxes than you have to?

IRS deadlines are nothing to trifle with! When you receive a notice from the IRS, you need to act on it right away. Get help from a qualified MA tax professional. Getting your tax problems solved will stop the stress. Call right away. It doesn’t matter if you don’t know where to start or don’t have your W-2s or 1099s. We can help you!

What Happens If I Don’t File My Taxes for 3 Years?

“Back in 2010, I had a rough year. My Dad died, work was nuts – it just wasn’t a good time,” Glenn , who lives in Southborough, MA, shook his head. “Did I do everything I was supposed to? No.  I didn’t file my income tax that year. Was I intentionally doing something wrong? No – but the fact I didn’t file in 2010 prevented me from filing in 2011 or 2012. What’s going to happen to me?”

Unfiled Tax Returns: Your Questions Answered

Not filing a tax return on time is one of the most common tax problems.  The IRS estimates that 10 million people fail to file their taxes in any given year: if you have unfiled tax returns, you’re not alone.

“I thought the IRS was going to catch up with me right away,” Glenn said. “I expected a knock on my door way back in May 2010. But nothing happened. Now I’m not sure if I slipped through the cracks or if the IRS is going to come after me tomorrow. It’s very stressful.”

Having unfiled tax returns is like walking across a minefield – without any minesweeping equipment! You never know when the whole situation is going to blow up in your face. The truth is that it’s very difficult to predict exactly when the IRS is going to come after you. The IRS’ enforcement capabilities have increased with advances in technology: they’re pursuing unfiled returns much faster than was previously the case. If you haven’t filed your taxes, you should know it’s only a matter of time until you’ll hear from the IRS.

Turn the Situation Around: Get Help Now

Choose an experienced tax problem solver to handle your unfiled tax return situation. It’s always better to file your tax returns before the IRS contacts you!

That way you’ll have an accurate understanding of what your financial situation is. Working with an experienced MA tax professional, you may discover that you owe less taxes than you thought – or that you’re actually entitled to a tax refund! It happens more often than you might think.

Being proactive about your unfiled tax returns buys you time to act strategically. Having more time to find deductions, gather bank statements, and handle all of the other paperwork associated with filing late tax returns is always advantageous to the taxpayer.

Finally, having your MA tax problem solver handle your unfiled tax returns helps you avoid criminal prosecution.  “I really didn’t want to go to jail for criminal failure to file,” Glenn said. “I’m just starting to get my life turned around and back on the right track! Going to jail is not part of my plan.”

While criminal prosecution against taxpayers who fail to file is relatively rare, it’s important to know that IRS policy is generally not to pursue action against taxpayers who voluntarily file late tax returns.  Avoid expensive fines and penalties, as well as the stress and anxiety that comes from living with unpaid tax returns, by getting help now. It’s never too late to file a tax return!

JK Harris Locks Doors

By David Slade, December 29, 2011, Post & Courier, Charleston SC

GOOSE CREEK — Bankrupt tax-preparation firm JK Harris suspended all operations late this afternoon and is bracing for a likely liquidation of the firm’s assets, according to founder and Chief Operating Officer John K. Harris.

As of the end of November, the company still employed about 135 people in Goose Creek. They were told late today that they would be locked out of the building at 5 p.m. and could return Friday to pack up their personal belongings.

The company was unable to secure additional funding after filing for Chapter 11 bankruptcy protection in October, and will ask the court to convert the case to a Chapter 7, Harris said, which means that instead of restructuring, the company could be shut down and its assets sold.

“This is truly the most devastating event I have been forced to deal with in my 58 years on this earth,” Harris said in an email to employees. “I am not sure it will reach that level for all of you, but I know that for some of you it will be as personally devastating for you as it is for me.”

JK Harris & Co. once advertised that it could resolve people’s tax debts for “pennies on the dollar,” but the nationwide company was dogged by cash-flow problems and the cost of large settlements related to multiple claims that it misled consumers

The company sought bankruptcy protection in October to head off an attempt by the Texas attorney general’s office, related to consumer claims, to force the company into receivership. Harris, in emails to employees, vendors and clients, blamed today’s shutdown on the refusal of the company’s largest creditor, RAI Credit of New Jersey, to provide additional financing.

Employees who were previously laid off are among the creditors owed wages. Money is also owed to vendors, and to consumers who were to get millions of dollars in compensation from previously agreed-upon settlements, from a class-action suit and from complaints by multiple attorneys general.

 

IRS identity theft keeps innocent taxpayers waiting months to receive their refund

By: Jenn Strathman, newsnet5.com

CLEVELAND – The IRS said there’s been a five fold increase in identity theft from 2008 to 2010. While the IRS said the breach is not happening at their offices, they are stuck finding a solution to this costly problem that leaves legitimate taxpayers waiting months for their refund check.

Despite a year of hard work, Sarah Madunicky’s financial future is up in the air.

“It’s very frustrating because you work for something and it’s owed to you and someone else can go right under there and take it from you,” Madunicky said.

The IRS rejected Madunicky’s tax return this year. She said the IRS told her someone else already used her social security number to file a return.

An IRS Tax Return Transcript shows a return with Madunicky’s social security number using a Cleveland Heights, Ohio, mailing address, but Madunicky lives in a different city.

The Cleveland Heights home used in the fraudulent filing sold this spring, and the new owners said they have nothing to do with this case.

There was another red flag on the return for Madunicky. The dependent listed on the return would have been born when Madunicky was just two years old.

“It doesn’t really add up,” Madunicky explained.

The return still went through. Five months later, Madunicky is still trying to get answers and her tax refund from the IRS.

“They are not very cooperative and not helping me with any of this,. Madunicky said.

IRS identity theft victims wait months for help

Madunicky is not alone. Testimony from three other identity theft victims at a Congressional subcommittee led the IRS Commissioner to issue an apology.

“We obviously need to do better,” Commissioner Douglas Shulman said.

The IRS told the Government Accountability Office that it’s difficult to screen every return for fraud, and said there are “trade-offs” if it adds more restrictive screening.

It’s expected there would be delays in processing, and could overwhelm the IRS’ capacity to issue refunds in a timely manner.

The GAO report also discussed additional screening mechanisms for known identity theft victims. Returns that fail screenings require a manual review and contact with your employer. The IRS said it feels even this type of screening for ID theft victims would pose delays and a burden for employers.

While improvements would help, the Ohio IRS spokeswoman, Jennifer Jenkins, told NewsChannel5 that the IRS stopped nearly 117,000 ID theft returns just this year. Those measures protected more than $582 million from ending up in the wrong hands.

IRS wants to use PIN system to reduce fraud

“I think the PIN is really the solution,” Commissioner Shulman explained.

Taxpayers would need a six digit Identity Protection Personal Identification Number (PIN) to file a return.

It’s only a pilot program used by 56,000 previous identity theft victims. During the pilot program, the taxpayers will get a new PIN each year for 3 years following ID theft.

“Anything would make it better, especially with a PIN that only certain people would have,” Madunicky said.

Once someone else has your social it takes years to unravel the mess leaving Madunicky to continue to wonder how her social security number was stolen and when the thief will use it again.

“It’s going to be something that haunts me,” Madunicky said.

We called the IRS and Congresswoman Betty Sutton’s office (D-Ohio, 13th District). Sutton’s office said the IRS was just finishing the investigation and the check was immediately issued.

While the case is resolved, this may never go any farther. The IRS told the GAO a “small number of cases” lead to criminal investigations. Privacy laws prohibit them from sharing information with other government agencies and local investigators. So, protection is key.

Protecting yourself from ID theft

If you suspect IRS identity theft, call the IRS Identity Protection Specialized Unit at 1-800-908-4490.

Checking your credit report is the best way to keep tabs on your identity. ” Annual Credit Report ” is the official free site that allows you to check your report. There are three credit reporting agencies, and you can check each agency’s report once a year for free. To keep tabs on your credit year round, check one report every four months.

If you notice anything unusual, call the credit reporting agency. The steps to dispute a record on your report are contained in the back of the credit report.

Repairing your credit and identity can take a long time. The Federal Trade Commission outlines all the steps you can take to fight back once you’re victimized. It outlines how to place a fraud alert on your account.

You may also explore a credit freeze. This freezes your credit to reduce the damage. Nobody will be allowed to open another line of credit with your social without proving they are who they say they are. This will make it more difficult for you to get credit, but will reduce the damage to your identity. To obtain a freeze, call Experian , Equifax , and TransUnion .

Finally, don’t give your social security number to anyone unless it’s absolutely essential. Many companies ask for your social, but they don’t really need it. Don’t give it out to anyone unless it’s absolutely necesary.

‘Tax Lady’ Roni Deutch Pleads Not Guilty

Sacramento, Calif. (June 20, 2011)
By Michael Cohn, Accounting Today

Roni Deutch, the tax attorney who heavily advertised her IRS tax resolution services before she was forced out of business, has pleaded not guilty to contempt of court charges.

Deutch billed herself as the “Tax Lady” in her infomercials before she closed down her law firm and surrendered her law license last month (see ‘Tax Lady’ Roni Deutch Closes Firm amid Allegations). She was sued for $34 million last August by the California Attorney General’s Office, which accused her of swindling clients who had gone to her firm seeking help resolving their outstanding tax debts with the IRS (see California AG Sues ‘Tax Lady’ Roni Deutch for $34M). In April, a California judge froze her assets after the Attorney General asked the court to hold her in contempt for shredding millions of documents and diverting hundreds of thousands of dollars in funds from her clients (see ‘Tax Lady’ Roni Deutch’s Assets Frozen by Judge).

During her arraignment Friday in Sacramento Superior Court, Deutch’s attorney registered a not guilty plea on her behalf to the contempt of court charges, according to The Sacramento Bee.

Deutch herself did not speak during the court hearing. Outside the courthouse, a small group of supporters, including several of her relatives, demonstrated on her behalf, holding up signs and yelling, “Justice for Deutch.”

‘Tax Lady’ Roni Deutch Closes Firm Amid Allegations

North Highlands, Calif. (May 16, 2011)
By Michael Cohn, Accounting Today

Roni Deutch, who heavily advertised her tax problem resolution services on television, has closed her law firm and surrendered her legal license after a California judge froze her assets.

Deutch was sued last August by the California Attorney General for $34 million, charging her with swindling thousands of people who came to her for help with fixing their tax problems with the Internal Revenue Service (see California AG Sues ‘Tax Lady’ Roni Deutch for $34M). Last month, a California judge froze her assets after the Attorney General asked the court to hold her in contempt for shredding millions of documents and diverting hundreds of thousands of dollars in funds from her clients.

The State Bar of California said Thursday that it has initiated disciplinary proceedings against her. Deutch held a press conference last Thursday at the headquarters of her law firm in North Highlands, Calif., to announce the closure of her firm and her financial difficulties, but sounded a note of defiance.

“I am letting you know right now that I am turning in my state bar license after 20 years,” she said. “So I say this to you, State Bar of California, ‘Are you going to come to my building and help my 4,000 active clients? Are you going to do that, State Bar of California? Will you now come and pick up my 45,000 debt files? Will you come and pick those up? Do you really care about my clients, State Bar of California? Never disciplined me for 20 years, approving my policies, practices and procedures. Are you now going to show up and help my clients? The last time I checked, you were unwilling to help any of my clients unless I was dead or in a mental hospital. Those were the only conditions that you were going to show up and help my clients, dead or in a mental hospital.’”

Deutch said her firm had run out of money and owed $10 million. She said she personally owed $5 million and did not have enough money to defend herself in court, according to the Sacramento Bee. Her own attorney has asked to be removed from the case because he hasn’t been paid.

‘Tax Lady’ Roni Deutch’s Assets Frozen by Judge

accountingtoday.com
Sacramento, Calif. (April 21, 2011)

A California judge has frozen the assets of “Tax Lady” Roni Deutch after the state attorney general asked the court to hold her in contempt for shredding millions of documents and wrongfully diverting funds from clients of her tax law firm.

Sacramento Superior Court Judge Shellyanne W.L. Chang signed an order Wednesday freezing Deutch’s assets and appointed a receiver who will take over the financial aspects of her business. Deutch heavily advertises her services for helping clients resolve their problems with the Internal Revenue Service, but has been the subject of a $34 million lawsuit by the California Attorney General’s Office accusing her of swindling clients (see California AG Sues ‘Tax Lady’ Roni Deutch for $34M).

Attorney General Kamala D. Harris asked the court on Wednesday to hold Deutch in contempt of court, imprison her for five days on each violation, and fine her thousands of dollars for shredding millions of pages of documents and failing to pay refunds to her clients in violation of a court order.

“Deutch showed herself to be a predator for profit, preying on innocent, hard-working people who were simply hoping to settle their accounts with the IRS,” Harris said in a statement. “By defrauding these victims, and then pleading poverty, she created a real danger that her clients will never receive their advance fees back.”

In August, the attorney general filed suit against Deutch for swindling thousands of people facing serious and expensive tax collection problems with the IRS. On August 31, the court issued an order that prohibited Deutch from destroying evidence.

“Despite this order,” the attorney general said, “Deutch has been routinely shredding documents on an almost a weekly basis.” The Attorney General estimates that to date Deutch has shredded some 1,643,000 to 2,708,600 pages of documents. Deutch’s shredding campaign has permanently deprived the attorney general of evidence needed to fully prosecute the action against her.

Deutch’s law firm, based in Sacramento County, had revenues of at least $25 million a year. She spent $3 million a year on advertising, much of it on late-night cable TV, and frequently offered tax advice on popular TV shows. In her pitches, she promised to significantly reduce the IRS tax debts of people who signed up with her firm. Instead, she took thousands of dollars in up-front fees from clients but offered little or no help in lowering their tax bills. Hundreds of clients complained to the Attorney General and other government agencies.

In addition to shredding documents, the Attorney General also charged that Deutch violated a November 17 preliminary injunction by failing to issue some $435,000 in refunds to her clients within 60 days. Instead she “decided to disperse funds to friends, family and other creditors. By draining her estate and that of the law firm, Deutch has placed her clients at serious risk of never receiving their refunds.”

For instance, Deutch opted to transfer hundreds of thousands of dollars in equity from the sale of her home to a media firm. She also personally withdrew $241,000 from the law firm’s accounts and her personal accounts at just one bank. In addition, since the preliminary injunction order was issued, Deutch made more than $21,000 in unnecessary expenditures, including gifts to family and friends, and a payment to a NASCAR racing team.

The attorney general asked the court to fine Deutch $1,000 and imprison her for five days for each count of contempt, to immediately freeze Deutch’s personal assets, and to appoint a receiver to manage her law firm’s business operations.

A spokesperson for Deutch’s firm did not respond to a request for comment.

Man Indicted for Falsifying Charitable Deductions

accountingtoday.com
Los Angeles (June 21, 2011)

A Santa Monica man was arrested Friday morning on charges that he committed tax fraud and attempted to interfere with the administration of the Internal Revenue laws.

Howard Hal Berger, 51, appeared Monday morning before U.S. District Court Judge John F. Walter. Berger previously pleaded not guilty to the charges specified in an indictment returned by a federal grand jury late last week.

According to the indictment, Berger filed a partnership income tax return for Lab Holdings LLC for the 2006 tax year which falsely reported a contribution of $1 million, substantially reducing his income tax liability.

In addition, Berger filed an individual income tax return for the 2006 tax year which falsely reported gifts to charity of $991,700 on the attached schedule of itemized deductions.

While under audit by the Internal Revenue Service, Berger submitted a false charitable donation letter in an attempt to substantiate the deduction for gifts to charity taken on the 2006 individual income tax return.

If convicted of all charges specified in the indictment, Berger faces up to nine years in prison and fines totaling $750,000. Berger is currently free on bond pending trial. A trial is scheduled for Aug. 9, 2011, before Judge Walter.

The investigation of Berger was conducted by IRS-Criminal Investigation in conjunction with the U.S. Attorney’s Office in Los Angeles.