QUESTION
Is a 1099 illegal refund charge a serious allegation? Why?
Asked on Apr 23rd, 2015 on Taxation - Ohio
More details to this question:
I was just recently alerted that I am under investigation for tax fraud. They are saying that I used the 1099-Original Issue Discount form for an illegal refund. Is this a serious accusation? What steps do I need to take?
2 ANSWERS
Chapter 7 Bankruptcy Attorney serving Lisle, IL
at
Mankus & Marchan, Ltd.
Update Your Profile
Contact a criminal tax attorney to help you through the investigation.
Answered on Apr 27th, 2015 at 7:07 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
Update Your Profile
First, understand there are two levels of tax problems. The first is civil liability, you took a deduction that you weren't entitled to (remember Billary deducting hundreds of dollars for donating used boxers?) or you "forgot" to report income (remember when Billary "forgot" to report her $100,000 commodity trading bribe? So nice to have a completely corrupt and amoral public figure as an example). These are civil tax issues. You pay the taxes, you pay a 100% penalty (of course as Billary was president the 100% penalty was forgotten - but you ain't president so you'll be paying it), and you pay the interest and that's it. The second is tax fraud. You make up false documents - like a false 1099 or do two sets of books for your business. Now we're talking about criminal acts. Criminal acts result in jail time and forfeitures of houses, cars etc. So tax fraud is serious as a heart attack.
Answered on Apr 24th, 2015 at 1:48 AM