Latest news 🗞️ from IRS cases that we need to be aware of and stay away from following the practices or ways shown in them. Be sure to do all filing for refunds on 1040 Sole proprietor and 1041 Revocable trusts, and substantiate all numbers by written source. USE THE TRUST INSTRUMENT TO MAINTAIN YOUR COMMUNICATION, do not freestyle or make up numbers or frivolous arguments. We have multiple examples of what not to do after careful research of the IRS programs and systems used to generate overpayments and refunds. Always keep in mind that you are the fiduciary of your accounting even if someone else did your taxes for you and turn them in for you.
-Temple ii
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1a:“Gauna falsely claimed on his income tax return for estates and trusts (Form 1041) that his trust had received $620,891 in interest income, which had been withheld and paid to the government.”
1b:“2020, Gauna filed another Form 1041, claiming his trust was owed a tax refund of $3,346,693. Later that year, he allegedly assisted in filing 13 additional 1041 forms, requesting refunds totaling $4,960,434, all of which he knew were fraudulent.”
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1a:“Sellers operated a website called commercialredemption.com on which she promoted the use of IRS form 1099-OID to commit tax fraud. Sellers identified as a so-called “sovereign citizen” and perpetuated the false premise that the U.S Treasury maintains secret accounts attributed to every U.S. citizen that can be drawn on by filing a series of bogus documents with the U.S. Treasury and other government entities.”
1b:“Sellers also promoted the use of IRS form 1099-OID to fraudulently report to the IRS debts – including mortgages, student loans, credit card debts, and court judgments – as income, along with 100% withholdings of that “income” in informational returns in order to overcome the IRS’s internal controls and induce the IRS to issue refunds that were not owed.”
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“Haley reported earning no income on his 2014-2017 tax returns. Haley's failure to report that income on his tax returns for tax years 2015 through 2017 caused the IRS a loss of approximately $186,290.”
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Protect yourself today from the possibility of mistakes by using our recommended tax softwares: Taxact.com (1041) Freetaxusa (1040) & Tax1099.com (1099’s).
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