November 2024

Volume 115, Number 115

Jesus Zach Abikarram

Freedom Tax Resolution Times

“Read About Taxpayers with IRS Problems & Find Out How to Solve Them”

INSIDE THIS ISSUE:

“This is too difficult for a mathematician. It takes a philosopher.”

–Albert Einstein, on filing tax returns.

Ex CFO Pleads Guilty to Embezzling 4.8 Million from Birth Injury Funds

John Raines, the former CFO of the Virginia Birth-Related Neurological Injury Compensation Program, pleaded guilty to embezzling over 4.8 million dollars from the program he was supposed to safeguard.

Raines, who handled the finances for the organization, which supports families of infants with brain and/or spinal injuries caused during birth, siphoned funds through 59 wire transfers between 2022 and 2023. He used the money to lead a luxurious lifestyle, spending some of the money on eight luxury golf carts worth $160,000, a 2023 Chevy Suburban, and over $100,000 on gambling. He paid $9,000 for limo rides to vineyards and $125,000 for private jets. He bought cryptocurrency, along with gold and silver bars worth over $19,000. He used the funds for personal loans, his mortgage, his student loan debt, a $29,000 payment to an intimate partner, and transferred tens of thousands to a bank account in his wife’s name.

While trying to cover his tracks, Raines obstructed audits for three years by delaying access to financial records, further undermining the program.

Motel Owners Check into Tax Trouble

Tammy and Scott Bushnell of Dubois, Wyoming, were recently sentenced to eight months of home confinement and three years of probation for tax fraud.

The couple, who ran Trails End Guns and Trails End Motel, understated their income from 2017 to 2021 by withholding receipts and inflating expenses. Their scheme unraveled in 2021 when undercover agents, posing as buyers for the motel, discovered discrepancies in financial records.

The Bushnells destroyed documents that could expose their true earnings and filed false reports. They’ve been ordered to pay $122,112.46 to the IRS and $57,882 to the State of Wyoming, and fined an additional $13,161.

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Tax Resolution Times

How One Owner Gambled with Payroll Taxes and Lost

Michelle Gilson of Guilford, Connecticut, was sentenced to 19 months in prison, followed by three years of supervised release, for failing to pay over one million dollars in payroll taxes.

Gilson was the co-owner of B&M Package Solutions and former owner of Epic Empirez, both package delivery companies. She was responsible for the company’s books, invoicing, and payroll, which included withholding federal income and FICA taxes from employees. She withheld the taxes from employee paychecks but between 2017 and 2022 failed to pay them over to the IRS. Instead, she spent over $140,000 gambling at casinos, and $600,000 on mortgage payments and remodeling her home.

Gilson obtained a $250,000 Paycheck Protection Program loan in 2020, attesting that payroll taxes were current.

In addition to the prison sentence, she was ordered to pay $1,407,831.16 in restitution to the IRS.

CEO Steals from Head Start Gets a 58 Months Time-Out in Prison

Martin Handler of Brooklyn, New York, was sentenced to 58 months in prison for tax evasion and misappropriating millions from the federal government’s Head Start program, which provides early education to underserved children nationwide.

Handler secretly owned and controlled the non-profit Project Social Care Head Start Inc. from 2017 to 2021, which allowed him to divert millions of dollars from the Head Start program, including 4.7 million dollars he “sold” to a co-conspirator. These funds were to be used exclusively for the Head Start program, which prohibits earning a profit.

Between 2019 and 2023, Handler was also the majority owner of New York City Early Learning Co., and through that company received millions in Head Start grants. He used some of these funds to pay for personal loans and to buy luxury vehicles for two of the organization’s board members.

In 2021 and 2022 Handler falsely claimed two million dollars in charitable contributions on his tax returns, evading $740,000 in taxes. He’s been ordered to pay $1,156,068.10 in restitution to both HHS and the IRS, along with an additional $740,000 to the IRS, and a $200,000 fine. Handler will also serve three years of supervised release after his prison term.

Thank you!

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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Tax Preparer Cheats IRS Out of 28 Million Dollars Heads to Jail

Salvador Gonzalez, a California tax preparer, was sentenced to prison after masterminding a decade-long tax scheme that cheated the IRS out of at least 28 million dollars.

Gonzalez was the owner of Grace’s Lighthouse Resource Center. Beginning in 2013, before preparing a client’s tax return, he would have the client create a fake business entity. He would then refer the client to an associate who would create a sham business tax return, based on numbers the client entered into a spreadsheet that listed mortgage payments, car payments and utility bills, all as business expenses. Gonzalez then worked his magic on the personal tax returns, adding fabricated deductions for charity, medical expenses, and more.

Gonzalez also worked his creative accounting skills into his fees. Before 2019, he charged a flat $500 fee per return, but then switched and began charging his clients 1% of their gross income in exchange for his services.

He was sentenced to 72 months in prison and ordered to pay $403,908 in restitution.

The U.S. Attorney’s Office has also filed a civil complaint to permanently bar Gonzalez from preparing tax returns.

Are You My Next Client of the Month?

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.

Bookkeeper’s Creative Accounting Costs Her 13 Years

Shelly Jo Ketcher was sentenced to 13 years in prison, followed by three years of supervised release, for money laundering and filing a false tax return.

Ketcher, a bookkeeper for South Delta Aviation, a dealership for new and used aircraft in Arkansas, embezzled over 2.5 million dollars over a five-year period, the length of her employment with the company.

She issued payments that were not unauthorized to herself, paid her credit card bills with company funds, and issued payments to people who were not employed by the company.

She filed a false tax return to hide her activities and declared none of the additional income.

Ketcher has a prior criminal record that includes a conviction for wire fraud and two convictions for embezzlement in Oklahoma.

In addition to the prison sentence, she was ordered to pay 3.4 million dollars in restitution to her employer and the IRS.

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Tax Resolution Times

Did You Know?

The Revenue Act of 1861 was the first time income tax was levied in the United States. The tax percentage was 3%.

Thank you for the Kind Words…

… 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.

I’d Like to Hear From You!

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

Enter Our Trivia Contest for a Chance to Win a $250 Transferrable Gift Certificate!

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… 

Libby’s claims they sell enough cans of their 100% pure pumpkin to make how many pumpkin pies every year?

a) 55 million

b) 27 million

c) 90 million

d) 105 million

Your IRS Questions Answered Here…

Question: I’m currently separated from my spouse, who owns his own business, and we are getting a divorce. I have always filed jointly with my husband, and now the IRS is sending me notices stating I owe $87,000. I have no idea how they are coming up with this amount, as my spouse always took care of filing and the taxes.

Answer: You may be able to avoid this liability entirely under the IRS’s Innocent Spouse Relief rules.  Under federal law if an income tax return is signed by both husband and wife, both spouses are 100% responsible for the taxes owed.  However, the law permits special consideration where a spouse cannot be held responsible for the underreporting of income or the understatement of tax that’s attributable to the other spouse.

If you meet the certain criteria, you may be able to apply for Relief under IRS’s innocent spouse rules: For example, if the amount reported on your joint tax return is correct but wasn’t paid with the return you may be eligible. Or, if you feel you were deceived by your spouse or tricked into signing a return you thought was correct this can be a valid defense as well.  There are many other ways you may be eligible for relief under the IRS’s innocent spouse rules, and we can help sort this out and determine the proper path forward toward permanent resolution.

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, no-obligation consultation.

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