Category Archives: Tax Fraud

Former Oklahoma State Senator Embezzled $1.2 Million & Committed Tax Fraud

Posted on August 23, 2015 by Russ

Ricky Brinkley used to be a State Senator in Oklahoma; he represented Tulsa and nearby areas. He resigned last week and then pleaded guilty to five counts of wire fraud and one count of subscribing to a false tax return. … Continue reading →

Posted in Tax Fraud | 1 Comment

Two Sets of Returns Aren’t Better than One

Posted on August 16, 2015 by Russ

As I get ready to teach a course in ethics, I have plenty of practical examples of things not to do. Today I look at the idea of preparing one set of tax returns for clients but using a second … Continue reading →

Posted in Tax Fraud | 1 Comment

There’s Innocent FBAR Violations, and There’s This

Posted on August 11, 2015 by Russ

It’s one thing when Aunt Sally inherits €8000 in the old country, it sits in the bank for one day, and she then gets the money the next day in the US. Yes she should have filed an FBAR, but … Continue reading →

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Why Rob Banks, Redux

Posted on August 11, 2015 by Russ

Back in 2012 I noted that gangs were looking at identity theft as the successor to bank robbery. From Los Angeles comes the news that the California Attorney General’s Office, along with the Long Beach Police and the US Postal … Continue reading →

Posted in California, Tax Fraud | Tagged | 1 Comment

Yes, Illegal Income Is Taxable

Posted on July 19, 2015 by Russ

If you commit fraud do you have to report the illegal income on your tax return? Absolutely! Illegal income is just as taxable as legal income. Al Capone went to prison not for the murders and other crimes he committed … Continue reading →

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A Peabody, Massachusetts Tax Preparer Gives an Unwitting Endorsement for EFTPS

Posted on June 28, 2015 by Russ

Barry Ginsberg operated a payroll tax service in Peabody, Massachusetts (near Boston). He endorsed escrow accounts for his clients; they would send him the money for the payroll taxes and he, in turn, would pay them. Since I’m writing about … Continue reading →

Posted in Payroll Taxes, Tax Fraud | 1 Comment

Foreign Earned Income Exclusion Gets a Vegas Preparer in Hot Water

Posted on March 15, 2015 by Russ

I prepare quite a few returns with the Foreign Earned Income Exclusion. The Exclusion allows bona fide residents of a foreign country or individuals who are outside of the United States for 330 days out of a 365-consecutive day period … Continue reading →

Posted in Tax Fraud | 2 Comments

“Give us a tax code that is simple enough for taxpayers to comply with and simple enough for the IRS to administer, and you’ll dramatically reduce fraud.”

Posted on March 12, 2015 by Russ

It’s not brain surgery. Tom Giovanetti hits the nail squarely on the head in his op-ed in The Hill. Mr. Giovanetti notes that keeping the voters happy is why fraud prevention hasn’t been a big issue. But it is now, … Continue reading →

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I’m Sure This Will Endear Him To The Judge

Posted on March 8, 2015 by Russ

You’re about to be sentenced on 20 felony convictions. You wouldn’t just flee the country, would you? Well Alan Rodrigues tried to do just that. Mr. Rodrigues was convicted last May on charges that he led a national scheme to … Continue reading →

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It Was the Sisterly Thing To Do

Posted on March 1, 2015 by Russ

Three Wisconsin sisters allegedly decided that tax fraud and identity theft should stay in the family. They’ve been accused of filing 2,000 phony returns by the Wisconsin Department of Revenue. The Staten sisters (Sharon, Tawanda, and Angela) face 22, 28, … Continue reading →

Posted in Tax Fraud | Tagged | 1 Comment