Tax Avoidance Business Owner Liable for Six Years of Unfiled Returns

Peyton Mottahedeh, president of a California business that encourages income tax evasion, has been found liable for taxes and penalties relating to six years of unfiled federal tax returns. Mottahedeh’s business, the Freedom Law School, advocates for tax avoidance practices such as refusing to file tax returns and maintaining marginal financial records.  After six years of unfiled returns, the IRS began an audit of the Mottahedehs in 2008, a process that eventually resulted in the case being hea...

Routine Traffic Stop Uncovers $1.8 Million Dollar Tax Fraud Scheme

Richard Lara of Providence, Rhode Island appeared before the U.S. District Court for the District of Rhode Island on December 4, 2014 to receive his sentence to federal prison after pleading guilty to charges of aggravated identity theft, theft of government property, and conspiracy.  Lara along with Julian Balbi conspired to commit a massive tax fraud scheme for a million dollar payoff. Balbi, who plead guilty in June, was sentenced on September 18, 2014. The young men, both 23, stole identifyi...

U.S. Tax Court Holds Pharmacist Owes IRS Nearly A Quarter Million Dollars

The United States Tax Court has held that convicted ex-Maryland pharmacist Steven Sodipo liable for over $190,000 in back taxes, penalties, and additions. According to the final determinations from an IRS audit triggered by his criminal convictions, Sodipo established various business entities in efforts to evade his tax liabilities from 2005 to 2007. Additionally, the IRS Revenue Agent assigned to the case performed a deposit analysis of Sodipo's bank statements and found over a quarter of a mi...

IRS Updates FATCA Foreign Asset Reporting Form 8938

The Internal Revenue Service recently released an updated version of the IRS Form 8938 “Statement of Specified Foreign Financial Assets”.   Taxpayers with offshore accounts or assets with values above various thresholds are generally required to file a Form 8938 with their annual federal income tax return.  As a result of the recently implemented U.S. Foreign Account Tax Compliance Act (FATCA), foreign financial institutions have begun reporting U.S. taxpayer account information to the IRS.  Thi...

IRS Ready For 2015 FATCA Enforcement and U.S. Account Disclosures By Foreign Banks

The Internal Revenue Service (IRS) is prepared to receive the account disclosures of information of U.S. taxpayers’ offshore accounts from thousands of participating foreign financial institutions in 2015, according to recent comments by IRS Commissioner John Koskinen.  In compliance with the Foreign Account Tax Compliance Act (FATCA), some 120,000 foreign banks and financial institutions are expected to have begun disclosing the account information of U.S. taxpayers to the IRS starting January...