Jill L. Platt, 36, pleaded no contest to the charges in a plea agreement. According to court documents, Platt embezzled more than $150,000 from her former employer, a local engineering firm. Platt had access to the company’s credit card and used it from September 2004 to October 2006 for personal items such as food, beverages, and entertainment. Platt also failed to claim the credit card purchases as income on her 2004, 2005, and 2006 state income tax returns. All income is taxable including income from illegal sources.
Platt faces a maximum of five years in state prison if sentenced to the full term under the plea agreement.
This was a joint investigation between the Sacramento County District Attorney’s Office and FTB.
Contra Costa woman arrested on suspicion of tax evasion
State and local investigators arrested a Martinez woman on April 7, on suspicion of state income tax evasion after she failed to appear in court on an unrelated matter.
Nanette Conley, 54, is the owner of Allstate Glass Centers Inc. The Franchise Tax Board alleges that she failed to pay $50,000 in personal income taxes between 2001 and 2003. She also is alleged to have filed a fraudulent 2004 state income tax return failing to claim the income she received from her business. According to the tax board, Allstate Glass Centers did not file 2002, 2003, and 2004 corporate tax returns.
Contra Costa sheriff's deputies arrested her at her home on the bench warrant and another alleging tax evasion.
She was booked into County Jail and held on $75,000 bail on the tax charges, and $10,000 bail on the failure to appear warrant. Each felony tax count carries a maximum term of 3 years in state prison.
Riverside man arrested April 15 on state income tax charges
On “tax day,” April 15, an Upland man was arrested on felony charges of filing false state income tax returns.
Jose Alberto Garcia, Jr., 28, is the owner and operator of Mi Oficina Income Tax, a.k.a. My Office Income Tax, a tax preparation business. According to FTB investigators, Garcia allegedly filed false tax returns for 2001 – 2004, failing to claim the nearly $968,000 in unreported income he earned during these years. The failure to claim the income was first discovered by FTB’s Fraud Prevention and Detection Unit. This program targets people who earned California income, but did not claim the income on their tax return. An earlier search warrant executed on Garcia’s bank account revealed the additional income. After today’s arrest, FTB investigators executed eight more search warrants on Garcia’s eight tax preparation businesses. Mi Oficina Income Tax offices are located in La Puente, Los Angeles, Ontario, Riverside, San Bernardino, Santa Ana, and Temple City.
Each felony tax count carries a three-year maximum term in state prison. All income is taxable, including income from illegal sources. Garcia owes the state more than $85,000 in unpaid tax on the unreported money. Penalties, interest, and the cost of the investigation will be added to the FTB’s restitution request.
Garcia was booked into the West Valley Detention Center in Rancho Cucamonga. Bail was set at $100,000, and his next court date has not been set.
]]>This relief is available for amounts withdrawn from these tax-favored accounts that are less than or equal to a taxpayer’s directly deposited stimulus payment.
To qualify for this relief, funds must be taken out by April 15, 2009, in most cases. Without this relief, taxes, penalties and other special rules would apply to amounts removed from these accounts. Regular refunds are not eligible for this relief.
Eligible tax-favored accounts include traditional and Roth IRAs, health savings accounts (HSAs), Archer MSAs, Coverdell education savings accounts (ESAs) and qualified tuition programs, also known as QTPs or 529 plans. Thus, for example, a taxpayer whose $1,200 stimulus payment is directly deposited into his or her IRA can take out anywhere up to $1,200 from the IRA, tax-free and penalty-free.
In general, the deadline for these withdrawals is the due date or extended due date for filing a 2008 return. This means April 15, 2009, for most taxpayers, or Oct. 15, 2009, for those who obtain tax-filing extensions.
]]>According to the FTB, there are several notable individuals owe a lot of taxes to FTB.
Among the list are O.J. Simpson, the comedian Sinbad, and Dionne Warwick, who owes over $2.7 million.
At the top of the list is a $6.1 million corporate tax delinquency. One other corporate delinquency is in the top 10 highest tax amounts, owing $2.7 million. The remaining eight of the top 10 amounts owed are for personal income tax delinquencies, owing from $2.1 million to $4.4 million. Six of the top ten have California addresses, and four are located out of state.
FTB is required by law to post a list of the 250 state income tax debtors who owe the largest amounts greater than $100,000 in tax, after first notifying them that their delinquencies will become public. Since January 2008, the State has received approximately $4.2 million in payments from taxpayers desiring to keep their names from being posted. More than $500,000 was collected last year when the original list was posted in October.
Taxpayers who do make the list can have their information removed by paying the tax in full, or agreeing to pay by installment. Tax liabilities under appeal, litigation, in bankruptcy proceedings, or under consideration for an Offer in Compromise are not included on the list.
The IRS tax extension gives taxpayers until Oct. 15 to file the IRS tax return. An IRS tax extension does not give the IRS taxpayer an extension of time to pay. Those who owe taxes can make a payment when they file the extension either by mailing a check or by several electronic payment methods, such as electronic funds withdrawals from bank accounts and credit card payments.
Some IRS taxpayers can wait until after April 15 to file a return, pay any taxes due and make IRA contributions for 2007. As a general rule, those eligible get the extra time without having to ask for it. Eligible IRS taxpayers include:
Members of the military serving in Iraq, Afghanistan or other combat zone localities. Normally, the postponement is until 180 days after the service member leaves the combat zone.
Disaster-area taxpayers in four states affected by recent floods, storms and tornadoes. The postponement is until May 6 in parts of Illinois, May 19 in parts of Georgia and parts of Missouri and May 27 in parts of Arkansas.
IRS expects to receive 10.3 million extension requests during 2008 compared with 10 million extensions received during 2007. The IRS expects to receive almost 2 million extension requests electronically this year.
Taxpayers can get an automatic six-month extension of time to file their tax returns by filing Form 4868, Automatic Extension of Time to File.
It is also important for extension filers to remember that Oct, 15 is not only the due date for their tax returns, it is also the last date on which a return can be filed that will result in an economic stimulus payment. Taxpayers who file earlier, however, will get their economic stimulus payments sooner.
If you are experiencing tax problems or facing potential criminal investigation by the IRS, you may consider speaking with a tax attorney in the south bay area.
]]>Los Angeles Tax Attorney – Internal Revenue Service Tax Attorney Donald L. Korb has selected David Hasen as the 2008-2009 Professor in Residence.
The IRS professor in residence reports directly to the IRS chief counsel and provides tax advice and assistance on a wide array of tax related legal issues within the scope of his or her legal expertise.
Hasen has been an assistant professor at the University of Michigan Law School since 2002. Also during the spring 2008 term, he has been a visiting faculty member at the University of Southern California - Los Angeles, Gould School of Law. Previously, he taught as a visitor at Hastings College of the Law in California concerning IRS tax problems.
Hasen has written about the taxation of financial instruments, the tax consequences of unwinding transactions and the taxation of advance payments. Hasen worked as an associate in the tax law groups of national tax law firms based in San Francisco. He holds a J.D. from Yale Law School, a Ph.D. from Harvard University and a B.A. from Reed College.
The IRS Office of Chief Counsel revived its Tax Professor in Residence program in 2006 after being dormant since the late 1980s. The program provides some of the nation's top tax legal academicians the opportunity to contribute to the development of IRS' legal tax policy and IRS tax administration.
Information also is available for Spanish-speaking retirees, disabled veterans and low-wage workers who normally do not have a tax filing requirement but must file a tax return this year to receive an economic stimulus payment. All stimulus payment details are available at Centro de Información Sobre los Pagos de Estímulo Económico.
Starting in May, the IRS will issue economic stimulus payments of up to $600 ($1,200 for married couples) for people who have an adjusted gross income of less than $75,000 in adjusted gross income ($150,000 for married couples). There also is a payment of $300 for each qualifying child younger than 17.
People who normally do not pay IRS taxes because their income is too low or nontaxable also may be eligible. People in this category must have at least $3,000 in qualifying income from, or a combination from, earned income, nontaxable combat pay and certain benefits from Social Security, Veterans Affairs and Railroad Retirement Board.
To be eligible, people cannot be dependents or eligible to be dependents on another’s tax return. Eligible people must also have a valid Social Security number. IRS taxpayers with Individual Taxpayer Identification Numbers are not eligible.
Most taxpayers just need to file a tax return as usual. The IRS will take care of the calculations. However, the eligible retirees, disabled veterans and low-income workers who normally do not file a return, must file a Form 1040A and write “economic stimulus payment” across the top.
Newly translated information includes the Package 1040A-3, an 8-page package of instructions, a sample Form 1040A and a blank Form 1040A. It contains everything needed to file a return immediately. Also, Free File – Economic Stimulus Payment is now available in Spanish.
If you are in the following areas, you may also contact a tax lawyer for further information:
Alhambra Arcadia Artesia Beverly Hills Burbank Calabasas Carson Cerritos Chatsworth Culver City Diamond Bar Downey El Monte El Segundo Gardena Glendale Hacienda Heights Harbor City Hermosa Beach Hollywood Industry La Canada Lakewood Lancaster Lawndale Lomita Long Beach Los Angeles Malibu Manhattan Beach Marina Del Rey Montebello Monterey North Hollywood Northridge Norwalk Palmdale Pasadena Pomona Rancho Palos Verdes Redondo Beach Rolling Hills Rosemead San Dimas San Fernando San Gabriel San Marino San Pedro Santa Clarita Santa Fe Springs Santa Monica Sherman Oaks Studio City Torrance Valencia Van Nuys West Covina West Hollywood West Los Angeles Woodland Hills
In order to effectively advise the IRS commissioner and executives, members are drawn from substantially diverse backgrounds. Members include representatives of the taxpaying public, the tax professional community, small and large businesses, colleges and universities, state tax administrations, banks, insurance, foreign financial institutions and the payroll community.
"IRPAC plays an important role in the nation's tax system," said IRS Commissioner Doug Shulman. "The group's broad knowledge of information reporting is invaluable to our tax administration efforts."
IRPAC is comprised of up to 35 members who are appointed to three-year terms by the commissioner. Each year, approximately one-third of the membership terms expire. Nominations are currently being accepted for up to six appointments that begin January 2009.
Interested parties may nominate themselves or a qualified person for membership. All nominees must complete an application and federal tax check waiver form. In addition, FBI background checks using fingerprints and, if applicable, practitioner checks are required of all nominees.
The supplemental application period for this grant will run from March 24, 2008, until April 24, 2008. The grant will cover the balance of the 2008 grant cycle (the 2008 grant cycle runs January 1, 2008, through December 31, 2008), and successful applicants may be eligible for a regular full-year grant for the 2009 grant cycle.
LITCs are qualifying organizations that provide representation for free or for a nominal charge to low income taxpayers involved in tax disputes with the IRS. They also provide education on taxpayer rights and responsibilities to taxpayers for whom English is a second language.
The LITC grant program is a federal program that is administered by the Taxpayer Advocate Service. The Taxpayer Advocate Service is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.
The program is now in its tenth year and continues to expand. To date in 2008, the LITC Program Office has awarded LITC grants to 154 organizations in all 50 states, the District of Columbia, Puerto Rico, and Guam.
To be considered for a supplemental 2008 LITC grant, a qualifying organization must be in a position to provide qualified services to taxpayers in the aforementioned areas. Qualifying organizations can apply for matching grants for the remainder of the 2008 grant cycle if they either provide representation for free or for a nominal fee to low income taxpayers involved in tax disputes with the IRS or provide education on taxpayer rights and responsibilities to taxpayers for whom English is a second language.
Examples of qualifying organizations include: (1) clinical programs at accredited law, business or accounting schools, whose students may represent low income taxpayers in tax disputes with the IRS, and (2) organizations exempt from tax under I.R.C. § 501(a) which represent low income taxpayers in tax disputes with the IRS or refer those taxpayers to qualified representatives.
As noted, the supplemental application period will begin March 24, 2008.
Applications for grants must be electronically submitted or postmarked by April 24, 2008. Grant decisions will be made by June 1, 2008, and funds awarded can only be used for the remainder of the 2008 grant cycle. Grant funds may be awarded for start-up expenditures incurred by new clinics during the grant cycle.
Taxpayers with IRS tax problems in the following communities may contact tax attorney here.: Aliso Viejo Anaheim Brea Buena Park Costa Mesa Cypress Dana Point East Irvine El Toro Foothill Ranch Fountain Valley Fullerton Garden Grove Huntington Beach Irvine La Habra Ladera Ranch Laguna Beach Laguna Hills Laguna Niguel Laguna Woods Mission Viejo Monarch Beach Newport Beach Newport Coast Orange Placentia Rancho Santa Margarita San Juan Capistrano SantaAna Seal Beach Tustin Westminster Yorba Linda
He filed his IRS tax return jointly with his wife Michelle Obama. Based on cursory review of his IRS tax returns for 2000-2004, Senator Obama's tax returns looks super clean and would survive any scrutiny from IRS tax audit. There are few items on 2005 and 2006 which could have been treated differently but would have had a negligible tax impact.
It would be interesting to review Clinton's tax returns.
Taking the following action may save a lot of taxes and avoid criminal prosecution by the IRS. If you are being contacted by the IRS or are receiving threatening letters from the Internal Revenue Service, you may need to contact a tax attorney for guidance.
File All Tax Returns
Taxpayers should file all tax returns that are due, regardless of whether or not full payment can be made with the return. Depending on an individual’s circumstances, a taxpayer filing late may qualify for a payment plan. All payment plans require continued compliance with all filing and payment responsibilities after the plan is approved.
Facts About Filing Tax Returns
Failure to file a return or filing late can be costly. If taxes are owed, a delay in filing may result in penalty and interest charges that could increase your tax bill by 25 percent or more per year.
There is no penalty for failure to file a tax return if a refund is due. But by waiting too long to file, you can lose your refund.
In order to receive a refund, the return must be filed within 3 years of the due date. If you file a return, and later realize you made an error on the return, the deadline for claiming any refund due is three years after the return was filed, or two years after the tax was paid, whichever expires later.
Taxpayers who are entitled to the Earned Income Tax Credit must file a return to claim the credit even if they are not otherwise required to file. The return must be filed within 3 years of the due date in order to receive the credit.
If you are self-employed, you must file returns reporting self-employment income within three years of the due date in order to receive Social Security credits toward your retirement.
Taxpayers who continue to not file a required return and fail to respond to IRS requests for a return may be considered for a variety of enforcement actions. Continued non-compliance by flagrant or repeat nonfilers could result in additional penalties and/or criminal prosecution.
Documents Required to File Your Taxes - IRS Tax Return Form 1040:
Forms W-2 – Forms from employers showing wages for the year.
Forms 1099 – Forms from banks and other financial institutions showing interest and dividends. Forms 1099 also report self-employment income.
Information on expenses to claim on the return, such as itemized deductions, child care expenses, or employee business expenses.
Social Security numbers for dependent children and any other person claimed as a dependent
A copy of the last tax return filed.
We are tax attorneys and serve our clients in the following areas: New York, Los Angeles, Chicago, Houston, Philadelphia, Phoenix, San Antonio, San Diego, Dallas, San Jose, Detroit, Jacksonville, Indianapolis, San Francisco, Columbus, Austin, Memphis, Baltimore, Fort Worth, Charlotte, El Paso, Milwaukee, Seattle, Boston, Denver, Washington DC, Las Vegas, Portland, Oklahoma City, Tucson, Albuquerque, Long Beach, Atlanta, Fresno, Sacramento, New Orleans, Cleveland, Kansas City, Mesa, Virginia Beach, Omaha, Oakland, Miami, Tulsa, Honolulu, Minneapolis, Colorado Springs, Arlington.
Long Beach Tax Attorney - For many IRS and California FTB taxpayers, this is the beginning of the tax return filing season. California Franchise Tax Board today reminded the more than 9.7 million taxpayers who use tax preparers for the income tax filing season to make sure their preparer is a qualified tax professional. Over the last several years there have been numerous IRS and FTB tax audits and tax court cases which have revealed a continuing pattern of tax fraud by certain tax preparers.
If you have been a victim of tax fraud or are in trouble with the IRS or FTB, you should consider consulting with a tax attorney.
"Taxpayers are responsible for errors made on their tax returns even if they are made by a tax preparer," said Controller John Chiang. "If you use a tax preparer, make sure you are dealing with a qualified, honest and professional one."
While honest tax preparers offer a valuable service to millions of taxpayers, dishonest tax preparers can manipulate tax returns to inflate expenses and deductions, claim unallowable credits or take excessive exemptions.
Last year, FTB investigators arrested four tax preparers on felony charges of filing fraudulent tax returns and FTB employees visited 715 tax preparation offices as part of their ongoing efforts targeting unlicensed tax preparers. Penalty letters were issued to only 91 unregistered tax preparers. Of those, 31 individuals complied and registered within the 90-day deadline, 28 stopped preparing returns, and 32 were assessed the $2,500 penalty for preparing tax returns without a license.
The IRS and FTB advise taxpayers to be aware popular claims made by fraudulent tax preparers:
Claiming they can get bigger refunds than other tax preparers. Someone unfamiliar with your financial situation cannot make such a guarantee.Basing their fee on a percentage of the refund amount rather than the complexity of the tax return.
Filing schedules where the information is fraudulent or lacks documentation to support the income or deductions.
Refusing to sign the tax return as the paid preparer or not providing a copy for the taxpayer’s records. The preparer is required by law to sign the return.
Require you to sign a blank return or in pencil.
The preparer is not properly licensed or registered.
California tax residents in Alhambra Arcadia Artesia Beverly Hills Burbank Calabasas Carson Cerritos Chatsworth Culver City Diamond Bar Downey El Monte El Segundo Gardena Glendale Hacienda Heights Harbor City Hermosa Beach Hollywood Industry La Canada Lakewood Lancaster Lawndale Lomita Long Beach Los Angeles Malibu Manhattan Beach Marina Del Rey Montebello Monterey North Hollywood Northridge Norwalk Palmdale Pasadena Pomona Rancho Palos Verdes Redondo Beach Rolling Hills Rosemead San Dimas San Fernando San Gabriel San Marino San Pedro Santa Clarita Santa Fe Springs Santa Monica Sherman Oaks Studio City Torrance Valencia Van Nuys West Covina West Hollywood West Los Angeles and Woodland Hills may contact a tax attorney at 310 788 9820.
California Tax Attorney- As IRS and State taxing agencies including California Employment Development Department (EDD) increase tax audit of business payroll records, we are noticing an increased attempts to reclassify indepedent contractors to employee status. Some IRS and EDD tax auditors are taking unilateral determination during the tax audit process that all independent contractors should be treated as employees. The following is a brief summary of common law legal factors to consider in employee vs. independent contractor analysis.
If you are located in the following areas- Los Angeles, Long Beach, San Jose, Oakland, Santa Ana, Irvine and San Francisco, and need to consult with a tax attorney regarding payroll reclassification audit of independent contractor to employee status, contact us at 888 553 8000.
Independent Contractor v. Employee Tax Audit: Behavioral control
Facts that show whether the business has a right to direct and control how the worker does the task for which the worker is hired include the type and degree of:
A)Instructions the business gives the worker. An employee is generally subject to the business' instructions about when, where, and how to work.All of the following are examples of types of instructions about how to do work:When and where to do the work
What tools or equipment to use
What workers to hire or to assist with the work
Where to purchase supplies and services
What work must be performed by a specified individual
What order or sequence to followThe amount of instruction needed varies among different jobs. Even if no instructions are given, sufficient behavioral control may exist if the employer has the right to control how the work results are achieved. A business may lack the knowledge to instruct some highly specialized professionals; in other cases, the task may require little or no instruction. The key consideration is whether the business has retained the right to control the details of a worker's performance or instead has given up that right.
B) Training the business gives the worker. An employee may be trained to perform services in a particular manner. Independent contractors ordinarily use their own methods.
Independent Contractor v. Employee Tax Audit: Financial control
Facts that show whether the business has a right to control the business aspects of the worker's job include:
A) The extent to which the worker has unreimbursed business expenses. Independent contractors are more likely to have unreimbursed expenses than are employees. Fixed ongoing costs that are incurred regardless of whether work is currently being performed are especially important. However, employees may also incur unreimbursed expenses in connection with the services they perform for their business.B) The extent of the worker's investment. An employee usually has no investment in the work other than his or her own time. An independent contractor often has a significant investment in the facilities he or she uses in performing services for someone else. However, a significant investment is not necessary for independent contractor status.
C)The extent to which the worker makes services available to the relevant market. An independent contractor is generally free to seek out business opportunities. Independent contractors often advertise, maintain a visible business location, and are available to work in the relevant market.
D)How the business pays the worker. An employee is generally guaranteed a regular wage amount for an hourly, weekly, or other period of time. This usually indicates that a worker is an employee, even when the wage or salary is supplemented by a commission. An independent contractor is usually paid by a flat fee for the job. However, it is common in some professions, such as law, to pay independent contractors hourly.
E) The extent to which the worker can realize a profit or loss. Since an employer usually provides employees a workplace, tools, materials, equipment, and supplies needed for the work, and generally pays the costs of doing business, employees do not have an opportunity to make a profit or loss. An independent contractor can make a profit or loss.
Independent Contractor v. Employee Tax Audit: Type of relationship
Facts that show the parties' type of relationship include:
A) Written contracts describing the relationship the parties intended to create. This is probably the least important of the criteria, since what really matters is the nature of the underlying work relationship, not what the parties choose to call it. However, in close cases, the written contract can make a difference.]]>B) Whether the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay. The power to grant benefits carries with it the power to take them away, which is a power generally exercised by employers over employees. A true independent contractor will finance his or her own benefits out of the overall profits of the enterprise.
C) The permanency of the relationship. If the company engages a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that the intent was to create an employer-employee relationship.
D) The extent to which services performed by the worker are a key aspect of the regular business of the company. If a worker provides services that are a key aspect of the company's regular business activity, it is more likely that the company will have the right to direct and control his or her activities. For example, if a law firm hires an attorney, it is likely that it will present the attorney's work as its own and would have the right to control or direct that work. This would indicate an employer-employee relationship.
Los Angeles - San Franciso Tax Attorney - The rate of plastic surgery in California especially in Los Angeles, Beverly Hills, Malibu, Pacific Palisades, Manhattan Beach, Palos Verdes, Newport Beach, Orange County, San Jose, San Franciso have seen dramatic increases over the last decade.
As tax attorneys, we are often asked by our clients in the entertainment industry whether certain surgical enhancements may be claimed as a deduction or expense.
Most tax lawyers are aware of the IRS Tax Court case involving “Chesty Love.” To generate more revenue from her profession as a stripper, Chesty Love decided to get breast implants to make her a size 56-FF and expensed the cost of the surgery. IRS tax court judge allowed Chesty to write off the cost of her operation equating her breast enhancement as a necessary expense alas “stage prop” to generate revenue.
However, can ordinary IRS taxpayers deduct breast implants or eye surgery and not run into tax problems in the event of a tax audit?
According to the IRS Attorney Tax Revenue Ruling #200357 issued by the IRS ,amounts paid by individuals for breast surgery, breast implants, vision correction surgery, and teeth whitening medical care expenses within the meaning of IRS Code § 213(d) may be deductible under § 213 of the Internal Revenue Code?
Hypothetical IRS Tax Court Case Scenario 1- Breast Implants and Tax:
Taxpayer A undergoes mastectomy surgery that removes a breast as part of treatment for cancer and pays a surgeon to reconstruct the breast.
Hypothetical IRS Tax Court Case Scenario 2 - Lasik and Tax:
Taxpayer B wears glasses to correct myopia and pays a doctor to perform laser eye surgery to correct the myopia.
Hypothetical IRS Tax Court Case Scenario 3 - Teeth Whitening and Tax:
Taxpayer C’s teeth are discolored as a result of age. C pays a dentist to perform a teeth-whitening procedure. A, B, and C are not compensated for their expenses by insurance or otherwise.
IRS Tax Court Rulings:
General IRS Tax Law or Tax Code Applicable to Medical Expenses:
Section 213(a) allows a deduction for expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, spouse, or dependent, to the extent the expenses exceed 7.5 percent of adjusted gross income. Under § 213(d)(1)(A), medical care includes amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body.
Medical care does not include cosmetic surgery or other similar procedures, unless the surgery or procedure is necessary to ameliorate a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease. Section 213(d)(9)(A). Cosmetic surgery means any procedure that is directed at improving the patient’s appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease. Section 213(d)(9)(B).
Tax attorney would argue that A’s cancer is a disfiguring disease because the treatment results in the loss of A’s breast. Accordingly, the breast reconstruction surgery ameliorates a deformity directly related to a disease and the cost is an expense for medical care within the meaning of § 213(d) that A may deduct under § 213 (subject to the limitations of that section).
Tax Attorney would argue that cost of B’s laser eye surgery is allowed under § 213(d)(9) because the surgery is a procedure that meaningfully promotes the proper function of the body. Vision correction with eyeglasses or contact lenses qualifies as medical care. See Rev. Rul. 74-429, 1974-2 C.B. 83. Eye surgery to correct defective vision, including laser procedures such as LASIK and radial keratotomy, corrects a dysfunction of the body. Accordingly, the cost of the laser eye surgery is an expense for medical care within the meaning of § 213(d) that B may deduct under § 213 (subject to the limitations of that section).
In contrast, IRS tax attorney would argue that the teeth-whitening procedure does not treat a physical or mental disease or promote the proper function of the body, but is directed at improving C’s appearance. The discoloration is not a deformity and is not caused by a disfiguring disease or treatment. Accordingly, C may not deduct the cost of whitening teeth as an expense for medical care.
Los Angeles - San Jose Tax Attorney: According to the Internal Revenue Service, lawyers from the IRS with the support of tax attorneys from DOJ announced that IRS has obtained civil injunctions against more than 100 tax promoters of illegal IRS tax avoidance schemes and fraudulent IRS tax return preparers in an ongoing crackdown that began in 2001.
Many of the illegal tax promoters targeted taxpayers in Los Angeles, Alhambra Burbank Carson Cerritos Downey El Monte Lawndale Lomita Long Beach Oakland Palmdale Pasadena Pomona San Jose Santa Monica Studio City Van Nuys West Los Angeles and Woodland Hills with income tax and payroll tax avoidance schemes. These taxpayers along with the tax promoters may receive IRS tax audit notice as part of the ongoing IRS tax investigation.
Many of the IRS Tax related injunctions, obtained in cooperation with the tax attorneys at Department of Justice, also order the IRS tax promoters to turn over taxpayer lists and to cease preparing IRS federal income tax returns for others.
Signaling a renewed fight against tax fraud and tax evasion, the IRS stepped up the use of injunctions to stop the tax evasion and tax fraud schemes designed to avoid income tax and payroll tax debt.
The IRS becomes aware of abusive tax promoters through a variety of means, including ongoing IRS tax audit, state of California tax audits,or referrals from external sources such as tax professionals.
The IRS is currently investigating more than 1,000 additional tax avoidance promoters for possible referral to the Justice Department and conducting individual and business tax audit on thousands of IRS tax scheme participants.
If you are currently being audited or think that you might be under IRS tax investigation, you may contact our offices located in Oakland, San Jose, San Mateo, Long Beach, Pasadena, Torrance, Los Angeles and San Francisco to speak with an experienced IRS tax attorney.
All taxpayers should be aware of tax preparers such as Hazel Harris who according to government complaint targets elderly customers who receive Social Security benefits and generates fraudulent income tax refunds on their behalf.
The Government and IRS Tax complaint states that Harris tells her clients she is an accountant who specializes in refunds for Social Security recipients. In order to increase business, she is alleged to have advised potential customers to contact current clients who have received refunds as a result of her fraudulent return preparation.
Harris reportedly generates improper tax refunds by reporting only half of her customers’ Social Security benefits as taxable income, and by fabricating amounts of taxes withheld. Additionally, she has prepared the clients’ returns for multiple years at one time, regardless of whether a return has already been filed for those years.
The government alleges that Harris has prepared more than eight-thousand federal income tax returns for others since 2001. According to Internal Revenue Service (IRS) estimates, she has claimed over $3.5 million in fraudulent refunds.
]]> As stated in the government’s complaint, Harris prepared three fraudulent tax returns for an undercover IRS agent posing as a customer. The undercover agent reportedly gave Harris a statement showing Social Security disability income, with no tax withheld. Harris prepared returns for the agent claiming Social Security benefits as the only income and then fabricated withholdings to generate fraudulent refunds.Since 2001, the Justice Department’s Tax Division has obtained injunctions against more than 310 tax return preparers and tax fraud promoters. Information about these cases is available on the Justice Department website, as is information about the Justice Department’s Tax Division.
If you have a tax audit, offer and compromise or other tax problem with the IRS or California State tax agencies in the following areas you can contact us for consultation: Alhambra Arcadia Artesia Beverly Hills Burbank Calabasas Carson Cerritos Chatsworth Culver City Diamond Bar Downey El Monte El Segundo Gardena Glendale Hacienda Heights Harbor City Hermosa Beach Hollywood Industry La Canada Lakewood Lancaster Lawndale Lomita Long Beach Los Angeles Malibu Manhattan Beach Marina Del Rey Montebello Monterey North Hollywood Northridge Norwalk Palmdale Pasadena Pomona Rancho Palos Verdes Redondo Beach Rolling Hills Rosemead San Dimas San Fernando San Gabriel San Marino San Pedro Santa Clarita Santa Fe Springs Santa Monica Sherman Oaks Studio City Torrance Valencia Van Nuys West Covina West Hollywood West Los Angeles and Woodland Hills.