Question
How many accountants does it take to screw in a light bulb?
Answer
How many did it take last year?
Christopher Dowtin was sentenced to 36 months in prison after he tried to cash an IRS refund check worth more than 32 million dollars.
In December 2024, Dowtin submitted eight Change of Address and Responsible Party-Business forms to the IRS in the name of two businesses. This in turn allowed tax refund checks intended for those companies to be mailed to him. As a result, he received refund checks totaling $32,495,888.58 and $26,156.50.
Checks in hand, Dowtin traveled from Georgia to Ohio, where he walked into a Morgan Stanley office to deposit the checks into a brokerage account held by a trust in his name. He claimed the businesses were compensating him for illegally using his “personhood” and said the IRS had transferred the payments to him. Although a financial advisor confirmed the checks were authentic U.S. Treasury checks, the circumstances raised immediate red flags.
A Morgan Stanley executive alerted the U.S. Secret Service and IRS Criminal Investigation, leading to the seizure of the checks.
In a bizarre twist, Bondary McCall, an associate of Dowtin’s was also sentenced to 36 months in prison for filing a lien against Judge Thomas Rose, who presided over Dowtin’s fraud case. McCall claimed that Judge Rose owed Dowtin 32 million dollars.
Le Hao Tran, a Houston florist who built luxury floral displays for weddings and corporate events, pleaded guilty to filing a false tax return.
Tran had high end clients, with one corporation paying her 2.7 million dollars for floral services at a corporate event. Between 2019 through 2022, Tran underreported her income by millions. She cashed customer checks and deposited checks into her business account, but did not list the deposits as income.
In 2022, she earned over nine million dollars, but only reported seven million dollars in income. She has already paid $1,391,167 in restitution and faces up to three years in prison and a fine.
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Tax Resolution Times
A former St. Louis tax preparer, Latasha Frison, was found guilty on 16 counts of filing false tax returns.
Frison operated tax businesses under several names, and was accused of falsifying more than a dozen tax returns for six taxpayers between the 2020 and 2023 tax years. The false filings generated hundreds of thousands of dollars in refunds clients were not entitled to.
Investigators were tipped off by red flags on hundreds of Frison’s returns. She filed more than 680 individual tax returns, and all but two claimed refunds. In one year, Frison’s average refund was over $14,000, compared with the average refund in Missouri and Illinois of about $3400. Returns frequently included Schedule Cs, federal fuel tax credits and COVID-19 family and sick leave credits.
Clients testified they didn’t know their returns contained false information.
Frison faces up to three years in prison for each of the 16 counts.
Grammy nominated rapper Twista pleaded guilty to five counts of willfully failing to file tax returns.
From 2019 through 2023, Carl Mitchell, best known by his stage name Twista, failed to pay federal income taxes. During that time, he earned money from performances, album sales, streaming and royalties, but ignored warnings from both the IRS and his own accountants about his growing tax debt.
Rather than paying what he owed, Mitchell entered into agreements with a third-party company to receive advances on future royalty payments. Authorities said he knew those funds would be beyond the IRS’s reach, preventing the agency from levying them.
Mitchell’s unpaid tax problems go as far back as 2011, and he owes more than $440,000 in federal taxes.
Best known for the 2004 album, Kamikaze, Mitchell worked with several well-known artists, including Ye and Jamie Foxx. While evading the IRS he continued spending freely, purchasing at least four luxury cars.
He faces up to five years in prison and restitution.
Thanks to YOU, the word is spreading. Thanks to my clients and friends who graciously referred me to their friends, clients and relatives last month! I enjoy building my business based on the positive comments and referrals from people just like you.
I just couldn’t do it without you!
Tax Resolution Times
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A Pennsylvania businessman who sold headstones to grieving families pleaded guilty to wire fraud and filing false tax returns.
Between January 2018 and September 2023, Gregory Stefan Jr. used his companies, 1843 and Colonial Memorials, to take advantage of hundreds of customers who were purchasing custom headstones and engraving services for deceased loved ones.
Stefan frequently required customers to pay up front, often collecting 100 percent of the purchase price before work even began. But the majority of orders were not delivered on time, if they were completed at all. Stefan ignored calls asking about the ordered headstones, or falsely assured customers they would arrive soon.
Nearly 500 customers paid him more than 1.5 million dollars, yet many never received either their headstones or refunds.
Stefan admitted filing false federal income tax returns and reporting zero income from his businesses between 2018 and 2021.
As part of his plea agreement, he accepted responsibility for similar offenses in 10 local cases across Pennsylvania, New Jersey and Delaware, resulting in an additional $210,000 in victim losses.
He faces restitution and a maximum possible sentence of 152 years in prison.
Every month I choose a very special Client of the Month. It’s my way of acknowledging good friends and saying “thanks!” to those who support me and my business with referrals, word of mouth and repeat business.
You might be my next Client of the Month too! Watch for your name here in an upcoming month.
Twin brothers Dennis and Greg March pleaded guilty to tax evasion after they hid income and failed to pay business and personal taxes from 2017 through April 2023.
Along with a third business partner, the brothers owned and operated several companies, including Elite Marketing Group, Elite MG and Principal Law Group. To avoid paying taxes on the businesses’ earnings, they routed money through a shell company they controlled, disguising income as business expenses while also failing to file numerous required IRS business and personal tax forms.
Each brother concealed more than 4.5 million dollars in income generated from 2017 to 2023, and failed to pay nearly 1.8 million dollars in taxes on that income.
The brothers used money generated through the scheme to purchase Florida real estate worth more than two million dollars, and made payments to build two homes on undeveloped lots. Between 2017 and 2022, they also withdrew more than 3.5 million dollars in cash from business accounts.
Each brother faces up to five years in prison along with restitution.
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Tax Resolution Times
If a business is attacked by hackers and pays a ransom to unlock critical data, the payout can be deducted as a business loss, provided the attack is well-documented
… I used one of those Runoff the Mill Tax Preparations firm and the preparer kept making it show like I had a loss in my business… I had no business and no loss… The IRS was billing me an outrageous amount. I learn of Freedom Tax Resolution, and they negotiated with the IRS for me. I’m very happy with their service.
-Earle G.
If you have an IRS issue, or just want to refer a friend, relative or client, we’d love to hear from you. We can provide a no-obligation confidential consultation to help you solve your IRS problems.
Freedom Tax Resolution
600 W Hallandale Beach Blvd Ste 4
Hallandale Beach FL 33009
954-361-7400
jesus@freedomtaxresolution.com
Take the Trivia Challenge to win!
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. Your prize is also transferrable, so use it for yourself, or give it to a family member or friend. Take your best guess and call me at 954-361-7400
This month’s question is…
What city has the biggest public school district in the country,
with more than 865,000 students?
a) Chicago
b) New York City
c) Los Angeles
d) Miami
Question: I’ve heard that the IRS will accept monthly installment payments that settles my tax debt for less than what I owe. Is that true?
Answer: This is what is referred to as a Partial Pay Installment Agreement. The IRS has several debt settlement options but it’s important to act before they garnish your paycheck and/or levy your bank account.
There are several types of Installment Agreements. One of them, is called the “Partial Pay Installment Agreement” (PPIA), where it’s possible to settle your outstanding balance owed the IRS for less. It’s based on your monthly disposable income and how much time remains on the 10-year collection statute expiration date. The IRS can only collect on a debt for 10 years, so the older your IRS tax debt is, the more likely you may qualify for a PPIA. The IRS does not “advertise” this option for obvious reasons. There are strict eligibility requirements that must be met, so the first step is to call us to see if you qualify.
We know how to navigate the IRS maze and know the “ins and outs” of the law, as that is what we do every day. As a matter of fact, once we’re retained, you’ll never have to meet or speak with the IRS. We take care of all of that because we know that the worst thing you can do is represent yourself. That’s like going to court without a lawyer.
We at Freedom Tax Resolution are experts in IRS tax problem resolution and help taxpayers with their IRS Problems every day. There is a solution to EVERY problem. Call us today! 954-361-7400 for a FREE confidential consultation.