October 2024

Volume 114, Number 114

Jesus Zach Abikarram

Freedom Tax Resolution Times

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

INSIDE THIS ISSUE:

I’d tell you some tax jokes, but I doubt you’d depreciate it!

Jailed Company Owner Buys Luxury Items Instead of Paying $60 Million He Owed in Payroll Taxes!

Luis Perez, the owner of several staffing companies, pleaded guilty to tax evasion and aiding the filing of a false tax return, as a result of nearly $60 million in unpaid taxes, penalties, and interest.

Between 2009 and 2017, Perez failed to pay over payroll taxes withheld from employee wages to the IRS. By 2017, Perez owed $29,593,378.

Instead of paying the IRS, Perez used company funds to buy luxury items, including a Ferrari 360 Spider, a Rolls Royce Phantom, a Duffy D 22 Bay Island boat and a Lamborghini Aventador. He hid his ownership by placing his assets under the names of friends and family. He also opened a Visa Black card in his now-wife’s name, to make personal purchases, further evading the IRS.

While under investigation and on pretrial release, Perez continued his fraudulent activities. Between 2018 and 2019, he helped file false tax returns that underreported wages at one of his staffing agencies by over $130 million, leading to an additional 29.6 million dollars in unpaid taxes.

Perez has been in federal custody since August 2023 for violating his bond, and faces up to eight years in prison at his sentencing in January 2025.

False Expenses and False Companies Lead to Real Consequences

A Boston tax preparer, Colleen Gruska, was sentenced to two months in prison, and 12 months of supervised release for filing false tax returns.

Gruska filed dozens of false tax returns for herself, relatives, and others, where she reported business losses that were exaggerated or for businesses that didn’t exist. On her own returns she reported $189,000 in expenses over four years for a house and yard cleaning business that had no expenses. This enabled her to avoid paying $36,079 in taxes. On a family member’s return she claimed a non-existing soccer coaching business with expenses of $233,561, which enabled the relative to avoid paying $39,599 in taxes.

In addition to the prison sentence she was ordered to pay $261,102 in restitution to the IRS

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Tax Resolution Times

Tax Evader Caught in a Crooked Royal Flush

Steven Saris was sentenced to over seven years in prison for tax evasion, operating illegal gambling businesses, and money laundering.

Saris hid his involvement in the businesses by destroying records and using nominee owners. He failed to report over $1.4 million in income for 2015 and did not file taxes from 2016 to 2021, despite earning more than nine million dollars from illegal gambling.

Saris made minimal payments to the IRS and spent millions gambling in casinos and renovating properties.

Following search warrants in 2018, Saris lied to authorities and continued his illegal operations. A later search in 2022 led to the discovery of his cell phone hidden in a toilet tank.

His actions resulted in a tax loss of $2,823,391.

Saris was ordered to pay restitution, and serve three years of supervised release after his seven year prison term

Multiple Crimes Lead to Multiple Years in Prison

Anthony Lamon Frazier and Frederick Andre Spencer of Birmingham, Alabama were sentenced for defrauding a professional football player and committing multiple financial crimes, including tax fraud.

From 2017 to 2020, Frazier, while working as a Talladega County Tax Assessor, laundered drug trafficking proceeds using postal money orders. He claimed the money orders were for car sales and deposited them into his personal bank accounts.

He and Spencer also conspired to create a sports-marketing agency called “Head of Game,” into which a professional football player invested $500,000. Instead of building the agency, Frazier and Spencer misused the funds for luxury travel, dental bills, and personal expenses, and repeatedly withdrew large amounts of cash. Frazier used over $100,000 to buy a house in Atlanta and Spencer transferred almost half of the funds to an account in his mother’s name.

Frazier also underreported his income from 2017 to 2019, failing to disclose drug and fraud proceeds. Spencer pleaded guilty to related wire fraud charges, including submitting false loan applications for PPP funds during the COVID-19 pandemic.
Frazier received 120 months in prison, and Spencer was sentenced to 49 months. The court ordered restitution of $500,000 to the football player and $239,316 for another victim.

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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Gun Parts Dealer Shoots Himself in the Foot with IRS

Lawrencium Martin pleaded guilty to tax evasion, possession of a firearm as a felon, and making false statements to federal investigators.

Between 2019 and 2021, Martin owned Lancaster Tactical Supply (LTS), a business that sold firearm parts and accessories. Despite appearing legitimate, LTS scammed at least 380 customers from 43 states by taking payments without delivering products.

To avoid reporting any income from LTS in his name, Martin set up the company under the name and social security number of an employee, without the employee’s knowledge, so that the business income would be attributed to that person and not him. Martin also lied to investigators, claiming he had no knowledge of LTS or its operations, that he had never received money from LTS or how his name became associated with the company.

LTS generated over $2,000,000 in 2020 through one payment processor alone, with Martin pocketing the proceeds. Martin failed to pay any state or federal income tax from 2015 to 2022 and the IRS estimates that he evaded more than $800,000 in federal taxes just in 2020.

Martin faces up to 10 years in prison, a fine of up to $250,000, and mandatory restitution.

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.

Electrician’s Bookkeeper Commits Fraud and Gets Shocked by IRS

David Tetreault pleaded guilty to tax evasion, theft of government money, and wire fraud after concealing income from the IRS and stealing disability benefits.

Tetreault was the bookkeeper for an electrical contractor from 2015 to 2021, and was paid in cash for his services. Not only did he not report any of the cash income on his tax returns, he also illegally used company funds to pay his credit card bills. As the company bookkeeper, he coded his credit card payments as legitimate business expenses.

Since he was paid in unreported cash by his employer, Tetreault applied for social security disability benefits and illegally collected over $320,000 in benefits from 2016 to 2024.

In total, Tetreault underreported his income by over 2.1 million dollars, costing the IRS more than $600,000.

He faces up to five years for tax evasion, 10 years for theft of government money, and 20 years for wire fraud, along with fines of up to $250,000 for each charge.

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Tax Resolution Times

Did You Know?

In Texas, sales tax is added on deodorant but not on antiperspirant.
Antiperspirant is exempt because the FDA requires it to be labeled with a drug facts panel.

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… 

What year did the Halloween TV special, “It’s the Great Pumpkin, Charlie Brown,” first air?

a) 1966

b) 1980

c) 1974

d) 1959

Your IRS Questions Answered Here…

Question: I’ve been getting threatening notices from the IRS recently. I think can pay the tax due but would like these ridiculous penalties and interest charges waived. Does the IRS waive penalties? What can I do to get these removed from my account?

Answer: There are several different ways the IRS removes or reduces penalties. One option is called First Time Penalty Abatement (“FTA”), but you must have a “clean record” for the previous 3 years prior to the year you’re requesting relief on. 

 

The other way to obtain abatement is due to “Reasonable Cause”.  The IRS has some nine different reasonable cause defenses you can apply under. One of them for example, is death, serious illness, or unavoidable absence.  It only covers immediate family members, and the issue must be addressed in a reasonable amount of time after the illness or death. You’ll need to show other obligations weren’t paid-not just the taxes. You’ll also need written proof of the illness or death. This must be requested via a formal letter to the IRS written in a very specific format. Call us to see if any of the other 8 arguments apply to you.

 

We at Freedom Tax Resolution are experts in IRS tax problem resolution and penalty abatement.  We help taxpayers with their IRS Problems every day.  There is a solution to EVERY problem. You’ll never have to speak or meet with the IRS, once we’re in the picture! Call us today! 954-361-7400 for a FREE confidential consultation

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