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Category Archives: TAX FRAUD
September California Franchise Tax News
More information directly from the California Franchise Tax Board.
The federal “Cash for Clunkers” program has generated a lot of interest among consumers and we have received many inquires about the tax implications of this popular program. / more+
Did You Know NHSC Loan Repayment Awards Are Exempt Under California Law?
National Health Services Corps (NHSC) loan repayment program provide payment of student loans for participants who provide certain services in areas where shortages of these services exist. / more+
Federal and State Income Tax Changes
Federal, State, and Revised 2009 Withholding Tables. / more+
How to Select a Tax Preparer
How to Select an Income Tax Return Preparer, FTB 982, is an educational tool for taxpayers. / more+
Chiang Determines Date to Stop Issuing IOUs
State Controller John Chiang today announced he has completed “stress testing” the Department of Finance’s cash projections from the state’s newly-revised budget and has determined the new spending plan will provide the State Treasury with enough cash to stop issuing IOUs on September 4, almost one month earlier than expected. / more+
Small Business
Does Your Client Know to Dissolve, Surrender, or Cancel Their Business Entity When They Are No Longer Doing Business?
It is very important for taxpayers to understand that business entities registered with the California Secretary of State (SOS) must be dissolved, surrendered, or canceled when they are ceasing operations in California.
Ask the Advocate
Reasonable Cause
Recently, I have received requests from taxpayers to have certain penalties waived for what they believe may qualify for reasonable cause. / more+
Inside FTB
New Policy for FTB Installment Agreements
We have implemented a uniform Installment Agreement (IA) Policy throughout our department, and external website. / more+
Criminal Corner
Our monthly summary on bringing tax criminals to justice, and closing the tax gap one case at a time./ more+
Fake CPA and Partner Busted
FTB News Release September 2009 -The owner of a Glendale tax preparation business and his colleague were arrested on multiple felony charges including elder financial abuse, grand theft, state income tax evasion, and state income tax fraud related to their roles in a bogus securities investment scheme, we announced on August 5, 2009.
Donald R. Ford, of Glendale, and Gregory A. Edwards, of Culver City, were remanded into custody after their arraignment Friday. Ford allegedly persuaded clients, whose trust he had gained from his tax preparation business, to invest in a phony investment scheme. Ford, who posed as a certified public accountant and Edwards allegedly, scammed investors by promising them high rates of return on investments. Instead, Ford and Edwards used the money for their own financial gain.
Ford earned more than $1.3 million in income from the unlawful scheme and Edwards earned more than $961,000 for his role in the scam. Ford allegedly failed to report this income on his 2002 and 2006 state income tax returns and owes the state more than $231,000 in unpaid tax, penalties, and interest. Edwards allegedly failed to report his income on his 2006 state income tax return and owes the state more than $81,000 in unpaid tax. All income is taxable including income from illegal sources.
Ford and Edwards were both booked into the Los Angeles County Jail and are still in custody. Their bail is set at $100,000 each. Their next court appearance has not been set.
The filing of false tax returns and the failure to file tax returns is part of the annual $6.5 billion tax gap facing California. The tax gap is defined as the difference between taxes that are owed and what is paid.
CPAs are licensed by the state. The public can check on the status of a CPA with the California Board of Accountancy atcba.ca.gov or by calling 916.263.3680. The IRS and FTB have recently issued a brochure, FTB Publication 982, How to Select an Income Tax Return Preparer where taxpayers can learn more about choosing a tax professional.
This is a joint investigation between Department of Justice (DOJ) and us. DOJ Deputy Attorney General Edward Skelly is prosecuting this case.
Stacie's Tax Stuff 