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MAY 2020 Read about taxpayers with IRS problems and learn helpful tips on how to end them.

RICK ROSS PAYS IRS $1.5 MILLION FOR UNPAID INCOME TAXES The rapper and music executive owed the taxes for income earned in 2014 and 2016.

RANDELL W. MARTIN, CPA P: 214.214.3000 Rapper and music executive Rick Ross 2014 and 2016. F: 214.214.3999 E: [email protected] paid the Internal Revenue Service more than $1.5 million to settle his unpaid Born in Mississippi and raised in South Helping Good People with IRS Problems taxes. )ORULGD 5RVV UHOHDVHG KLV ¿UVW VLQJOH “Hustlin’ ” in 2006 and then signed a IN THIS ISSUE: According to records obtained by The multimillion-dollar record deal with Jay Blast WKH ,56 ¿OHG D WD[ OLHQ UHOHDVH Z’s Def Jam Records. pg. Rick Ross Pays IRS $1.5 on February 24 reporting that Ross had 1 Million for Unpaid Income SDLGWKHVHYHQ¿JXUHWD[ELOO7KHOLHQ In 2009, Ross founded his own record Taxes ¿UVW ¿OHG LQ 'HFHPEHU  UHSRUWHG label, Maybach Music Group, on which pg. Founder of Russian Bank that Ross owed taxes from the years he has released six albums of his own. 1 Arrested

pg. 2 Man Filed False Tax Returns FOUNDER OF RUSSIAN

pg. BANK ARRESTED Salesman Spent Years 2 Evading Taxes, Costing IRS The founder of a Russian bank was ar- LWV FXVWRPHUV ZLWK ¿QDQFLDO DQG EDQN $1 Million rested in London in connection with a services. 86 LQGLFWPHQW FKDUJLQJ KLP ZLWK ¿O- pg. 0DQ%ORFNHG,56(ϑRUWV 3 ing false tax returns. CONTINUED ON NEXT PAGE

Iowa Man Gets 15 Months According to court records, Oleg Tin- pg. in Prison For Tax Evasion kov was the chairman and majority 5$1'(//:0$57,1&3$ 4 VKDUHKROGHURI7LQNR൵&UHGLW6\VWHPV a branchless online bank that provided

PAGE 1 MAY 2020 TTaxingaxing TTimesimes Taxing Times

Tinkov’s company was listed on the London Stock Exchange in 2013. Tin- kov owned more than $1 billion worth Helping Good People of company shares. After the company’s stock market listing, Tinkov, a Russian With IRS Problems national, renounced his U.S. citizenship. His decision to renounce his citizenship OFFER IN required him to pay taxes on his share earnings, according to the government. COMPROMISE For a free consultation, call 214.214.3000

MAN FILED FALSE TAX SALESMAN SPENT YEARS RETURNS EVADING TAXES, COSTING IRS $1 MILLION An Illinois man was indicted for alleg- HGO\SUHSDULQJDQG¿OLQJIDOVHWD[UHWXUQV He moved hundreds of thousands of dollars to for approximately 20 clients for tax years banks in Switzerland to avoid the taxman. 2015 and 2016 and diverting approxi- the funds. Such accounts, which gener- mately $106,033 in false federal refund $Q $ODEDPD VDOHVPDQ DQG WD[ GH¿HU pleaded guilty to tax evasion, admit- ally are used as investment vehicles, are claims to his personal use without his cli- ting that he’d caused a loss to the IRS of commonly known as “insurance wrap- ents’ knowledge. more than $1 million. pers.”

According to court records, Jason Hines, According to court records, Ivan Scott In 2014, Butler converted some of his 47, of Riverton, Illinois, allegedly gave Butler, of Hoover, Alabama, was an au- insurance annuities into precious met- some clients a “preview” copy of their re- tomobile industry consultant and sold als, which were shipped to Butler and turn with lower refunds and then prepared automobile warranties as an indepen- another individual in the United States. INSTALLMENT DQG¿OHGKLJKHUUHIXQGFODLPV dent salesman. In 1993, Butler stopped Some of those precious metals were ¿OLQJWD[UHWXUQVDQGDWWHQGHGWD[GH¿HU given to friends and family for safe- AGREEMENT To claim the higher refunds, Hines alleg- PHHWLQJVDQG SXUFKDVHG WD[GH¿HU PD- keeping. edly falsely reported losses associated terials. “Those who attempt to defy the laws ... with the sale of business vehicles, false ZLOO TXLFNO\ ¿QG WKDW QR RQH LV DERYH business income and expense amounts, 6WDUWLQJ LQ  %XWOHU XVHG VHYHUDO the law,” U.S. Attorney Jay E. Town and falsely claimed education credits. Nevada nominee corporations to receive his income. In or around 1999, Butler said in a statement. +LQHVWKHQGLYHUWHGDVLJQL¿FDQWDPRXQW moved hundreds of thousands of dol- of the refund to bank accounts he con- lars, some in precious metals, to bank %XWOHUIDFHVXSWR¿YH\HDUVLQSULVRQ trolled and used the funds for himself. accounts in Switzerland and concealed KLVDVVHWVLQR൵VKRUHLQVXUDQFHSROLFLHV If convicted, he faces up to three years in held in the name of non-U.S. insurance SULVRQIRU¿OLQJDIDOVHWD[UHWXUQDQGXS providers, disguising his ownership of 5$1'(//:0$57,1&3$ to 20 years in prison for wire fraud.

PAGE 2 Taxing Times MAY 2020 TTaxingaxing TimesTimes MAN BLOCKED ABOUT THE IRS EFFORTS

OOFFERFFER ININ While being audited, he created false invoices to cov- CCOMPROMISEOMPROMISE er up his tax misdeeds.

A Connecticut man pleaded guilty ob- Did you know it’s possible to settle your structing or impeding the due adminis- debt with the Internal Revenue Service tration of tax laws.

for less than the IRS says you owe? According to court records, Donald If you owe a substantial amount in back taxes to the government, you may Cariati Jr., 44, of Meriden, Connecticut, EHHOLJLEOHWRSDUWLFLSDWHLQWKH2൵HULQ&RPSURPLVHSURJUDP7KLVSURJUDP owns and operates Cariati Developers DOORZV\RXWRPDNHDQR൵HUWRWKH,56WKDWFRXOGVHWWOH\RXUWD[GHEWIRUVLJ- Inc., a snowplow and hauling business. QL¿FDQWO\OHVVWKDQ\RXRZH Between 2013 and 2017, Cariati paid Call to learn more about this program. several employees with company 214.214.3000 checks asserting that they were inde- pendent contractors or subcontractors so as not to withhold and pay over taxes to the IRS. Cariati also informed certain individuals that they were being paid ABOUT THE R൵WKHERRNV IINSTALLMENTNSTALLMENT In late 2015, the IRS began an audit. During the course of this audit, Cariati AAGREEMENTGREEMENT caused fraudulent invoices to be made available to an IRS revenue agent. The invoices were purported to have been Are you earning a good living but just created in 2013 and purported to sub- unable to pay your back taxes? stantiate that individuals were appropri- The Installment Agreement ately considered subcontractors. may be the option. Cariati, who agreed that he caused a tax of loss of between $550,000 and The Installment Agreement allows taxpayers to pay their tax debt over time by $1.5 million, faces up to three years in making manageable payments. The Installment Agreement can put you back prison. LQFRQWURORI\RXU¿QDQFLDOIXWXUH 5$1'(//:0$57,1&3$ Call to learn more about this program. 214.214.3000

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IOWA MAN GETS 15 MONTHS IN PRISON FOR CALL TODAY FOR A Taxing Times TAX EVASION FREE An Iowa man was sentenced to 15 months RI)RONHUDOVRDGPLWWHGKHPDGH CONSULTATION LQSULVRQIRUWD[HYDVLRQDQG¿OLQJDIDOVH and subscribed a false Form 1040 for the tax return. tax year 2012.

Jonathan Folker, 39, of Davenport, Iowa, In addition to his prison sentence, Folker Constantly thinking about how pleaded guilty to the charges, admitting was ordered to serve three years of super- much money you owe the Internal WKDWKHIDLOHGWR¿OHLQFRPHWD[UHWXUQVIRU vised release and ordered to pay restitution Revenue Service? Always worried several years and had a total tax liability LQWKHDPRXQWRIZLWKLQWHUHVW that you’ll never be able to get out from under this crushing debt? :RQGHULQJ ZKDW H൵HFW WKLV GHEW will have on your future and the future of your family? You’re not the only one. Every day, I work with clients to solve tax problems Our dedication to the principles of professionalism they believe are unsolvable. I’m a & responsiveness has resulted in our guarantee to: member of the American Society 1. Explore alternative solutions to client tax problems. of Tax Problem Solvers, and I am 2. Select the solution we believe is in our client’s best interest. part of the rescue squad for trou- 3. Explain our decision to clients, and bled taxpayers. 4. Aggressively pursue the solution decided upon. If you’re ready to We further guarantee to: be rescued, call me 1. Return client calls in a timely fashion. 2. Respond to IRS notices in a timely fashion. today to schedule a 3. Treat every client with respect, and free consultation. 4. Work every case like it was our own.

214.214.3000 Member of:

P: 214.214.3000 | F: 214.214.3999 | E: [email protected] 5$1'(//:0$57,1&3$ 14800 Quorum Drive, Suite 274 | Dallas, Texas 75254 www.IRSProb.com

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