Tax Law

Owners of mom-and-pop store take plea in $24M check-cashing case; tax refunds were key

A husband and wife who own a Florida convenience market have taken a plea concerning a $24-million check-cashing scheme in which federal tax refunds played a prominent role. Mohammad Sultan and Ashrafunnahar Mohsin are accused by federal prosecutors of cashing more than $20 million in fraudulent checks in November 2012…

Jun 17, 2014 3:55 PM CDT

Lawyer testifies she did her best to care for 100-plus cats

A California lawyer who won a tax court ruling on expense deductions for cat care is back in court, this time on a charge of animal abuse. Oakland lawyer Jan Van Dusen testified Wednesday that she did her best to care for the cats, CBS SF reports. Van Dusen, 62,…

Jun 12, 2014 12:44 PM CDT

Former state bar president gets two-year suspension for filing false tax returns

The Ohio Supreme Court has imposed a two-year suspension on a former state bar president who pleaded guilty to filing false income tax returns. Leslie Jacobs was suspended for two years, with credit for the time he was on an interim suspension that began in April 2012, report Cleveland.com and…

May 28, 2014 4:40 PM CDT

Can Maryland tax income earned and taxed in another state? SCOTUS to decide

The U.S. Supreme Court on Tuesday agreed to decide whether Maryland’s tax system places an unconstitutional burden on interstate commerce. At issue is whether Maryland may tax income earned and taxed in another state. According to Reuters, the case “could have broad consequences for state and local governments nationwide.” Other…

May 28, 2014 12:14 PM CDT

In wake of Credit Suisse plea, US expects ‘wealth of information’ leading to ‘the rest of the world’

A guilty plea earlier this month by a leading Swiss bank to a charge of conspiring to aid tax evasion is expected to open the door to worldwide enforcement against Americans who sought to hide their assets. Characterized by one tax lawyer as “a less-than-subtle message” to banks worldwide to…

May 27, 2014 7:15 PM CDT

Credit Suisse will pay $2.6B in tax evasion case, but won’t have to identify US clients

Credit Suisse pleaded guilty on Monday to a criminal charge of conspiring to aid tax evasion and agreed to pay about $2.6 billion in penalties. According to the New York Times DealBook blog, Credit Suisse is the most prominent bank to plead guilty to a criminal charge in the United…

May 20, 2014 1:19 PM CDT

BigLaw tax chief loses personal IRA case; rollovers for all taxpayers now limited to one per year

For years, an Internal Revenue Service rule allowed taxpayers to withdraw assets from a regular or Roth individual retirement account without penalty, so long as the assets were redeposited within 60 days and no more than one such withdrawal from each IRA was made every 12 months. But a tax…

May 12, 2014 6:10 PM CDT

House votes to hold former IRS official in contempt

The U.S. House of Representatives took two steps on Wednesday to show its disapproval of the way the Internal Revenue Service handled applications for tax-exempt status by groups with “tea party” and “patriot” in their names. The House voted to hold former IRS official Lois Lerner in contempt of Congress…

May 8, 2014 1:01 PM CDT

Widow who lost $280K house for $6 in unpaid interest vows appeal after judge upholds sale

A Pennsylvania widow is vowing to appeal a ruling upholding the sale of her $280,000 home for failure to pay $6.30 in interest on a tax bill paid six days late. “I’m going to fight it until my dying day,” Eileen Battisti, 53, told TribLive. The Associated Press, Forbes, McClatchy…

May 1, 2014 2:01 PM CDT

‘Sovereign citizens’ plaster courts with bogus legal filings—and some turn to violence

The Atta family locked up their Temecula, Calif., home and went on vacation in 2012. While they were gone, Victor Cheng moved in. Cheng had owned the home before the Attas, but he lost it in foreclosure. Nonetheless, he filed a fraudulent deed with the county recorder’s office, transferred the…

May 1, 2014 10:20 AM CDT

Courts are hearing new challenges to tax exemptions for religion

Pastor Rick Warren had a tax problem. Warren is the best-selling writer and leader of the evangelical Christian Saddleback Church in Orange County, Calif. As a “minister of the gospel,” under IRS rules he may receive a tax-free housing allowance from his church and apply it toward the cost of…

May 1, 2014 9:10 AM CDT

Congressman indicted for fraud in his restaurant business

The long simmering federal investigation of U.S. Rep. Michael Grimm, who represents Staten Island and parts of Brooklyn in Congress, reached a critical stage today with the release of his indictment on multiple fraud charges relating to his business, the New York Times reports. Grimm pleaded not guilty on Monday…

Apr 28, 2014 8:27 PM CDT

County tax bill, if upheld, will add to cost of new, privately financed courthouse

The construction of a new $2.3 billion courthouse in Long Beach, Calif., has been criticized from the outset due to its cost and the way the project was financed. It involved a private-public funding partnership, the first time such an approach was used to construct a courthouse in the state.…

Apr 23, 2014 1:15 PM CDT

Don’t procrastinate! Missing April 15 tax deadline can be costly, but the IRS offers alternatives

Although embedded in the national conscience, the April 15 deadline for filing federal income tax returns may, in reality, be somewhat discretionary. However, penalties for late payment can be severe and compliance with the law is easier than many may realize. For example, simply filing a Form 4868 (PDF) request…

Apr 15, 2014 8:15 PM CDT

Should taxpayers pay cash owed by their parents? In about-face, US halts collection of older debts

Taxpayers who learned they aren’t getting tax refunds because of old government debts—including debts owed by their parents—got some good news from the Social Security Administration on Monday. The agency announced that it will halt efforts to collect government debts that are more than 10 years old, the Washington Post…

Apr 15, 2014 3:37 PM CDT