Last month the California Department of Tax and Fee Administration (CDTFA) auctioned off two properties seized due to illegal cannabis sales. One of the properties, in Whittier, owes over $850,000 in taxes to the state which the CDTFA hopes to recover from its...
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Tax Audits
What Triggers an IRS Audit?
The Wall Street Journal listed 10 Red Flags that the IRS looks out for. Tax credits for children, healthcare premiums, earned income, and now pandemic related grants, loans, and credits make up a majority of their list. Other red flags are small business, especially...
California Businessman Indicted on Tax Charges
The importance of paying over employment taxes cannot be overstated. Larry Kudsk, a Berkeley construction businessman, learned this the hard way recently when he was indicted on seven counts of failing to pay over employment taxes he withheld from employee’s...
Male Escort Stripped of Freedom – Incarcerated for Tax Evasion
Any time a business receives payments regularly in cash, the business can be a target of an IRS audit. It is tempting for many business owners to forego reporting cash receipts, not realizing the many ways the IRS and Department of Justice Tax Division can catch up...
Business Owners – Pay Your Payroll Taxes! San Diego Restaurant Chain Manager Pleads Guilty to Tax Fraud
A San Diego restaurant manager with over 110 employees plead guilty to employment tax fraud this week. The manager has agreed to pay over $2.2 million in restitution to settle the $1.5 million tax loss he caused to the IRS by paying his personal income taxes rather...
Rolling in Dough(nuts)
The family of three Dippin Donut stores in New York were figuratively rolling in dough when they allegedly concealed over a million dollars in cash sales by depositing the money into their personal accounts instead of their business accounts. The trio also evaded...
Third-Party Payroll Services Can Get You In Trouble
The IRS is cautioning businesses that use third-party payroll services to be aware that the business is usually still held legally responsible if any tax filing is done wrong on their behalf. Although most payroll services are legitimate, every year employers are hit...
The U.S. Attorney’s Office takes Swift Action on CARES Act Fraud
The Department of Justice and U.S. Attorneys’ Offices around the Nation regularly investigate and prosecute tax preparers who prepare and file fraudulent income tax returns with the IRS. These government agencies are now seeking out those fraudsters who have filed...
