Posts tagged "federal tax fraud"

Judge announces that Yakama tobacco is subject to federal taxes

There was a ruling be a federal judge in Spokane that could possibly open a Yakama Nation tobacco company to tens of millions of dollars of tax liability.

A United States District Judge, Rosanna Malouf Peterson, mentioned last week that King Mountain Tobacco Company was not exempt from paying federal excise taxes on their cigarettes. There was a case that was filed last year in which prosecutors had claimed that the company owes over $23 million in taxes since the year 2009. King Mountain Tobacco had its own reasoning as to why they didn’t pay.

King Mountain Tobacco Company had mentioned in the argument that the federal law bars taxes on income that comes from trust land, like logging or even tobacco growing. The company had also mentioned the 1855 treaty between the Yakamas and the United States government.

Judge Rosanna Malouf Peterson mentioned that only a portion of the tobacco that is sold by King Mountain Tobacco Company is grown on the reservation that is mentioned. A majority of the tobacco that is grown to be sold by the King Mountain Tobacco Company is imported from Virginia. This fact obligates the tobacco company to step up and pay the federal taxes that they owe.

As of now, it is not known whether or not the King Mountain Tobacco Company has a response in the argument, but it is looking like they will have to comply with the judge’s orders.






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Posted by Taxmaster - July 10, 2013 at 7:56 pm

Categories: Federal Tax, Income Tax, Tax Evasion, Tax Law   Tags: , , , , , ,

Comptroller applicant withdraws more than $34,000 federal tax lien

There is one city comptroller in Grand Rapids that is withdrawing from consideration following a MLive inquire about a federal tax lien for his property.

The comptroller applicant named Mark Pospiech disclosed delinquent city income taxes on his application. Supposedly, he also owns $34,813 in federal income tax for 2009-2011, according to a tax lien that was filed in November of 2012 with the Kent County register of deeds.

Jerry Czaja, the county’s chief deputy register, says that it looks pretty clear that Pospiech didn’t pay his 1040 tax. When a person doesn’t pay their 1040 tax, the federal government will file a lien in the office, and the lien will become attached to any interest they have in any property. Currently, it doesn’t seem like a discharge will be recorded to release the lien.

Pospiech was one of the three applicants for the position of comptroller that was vacated when Donijo DeJonge stepped down from the position in December. He responded to MLive calls about the talked about lien with a written statement that he is going to withdraw from consideration of the comptroller position.

Pospiech said that throughout the application and interview process for the comptroller position, he said that the focus of the Press was more on his situation, eclipsing his abilities for the position. He believes that there are a variety of factors that have led to his current tax issues, but those factors are personal, and shouldn’t be drawn out by public opinion.



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Posted by Taxmaster - June 5, 2013 at 8:33 pm

Categories: Federal Tax, Income Tax, State Tax, Tax Evasion, Tax Law   Tags: , , , , , , ,

Doctor in London Guilty of Tax Evasion

1It has been reported that a London doctor that worked in Eastern Kentucky and Tennessee has pleaded guilty to having evaded well over $900,000 in federal income taxes. This was announced by Kyle Edelen, a spokesman for the U.S. Attorney Kerry B. Harvey.

The 64 year old Werner Grentz pleaded guilty this past week to tax evasion in London’s United States District Court. Grentz agreed to a plea stating that he must pay the Internal Revenue Service the debt that he owes in full.

Grentz worked as an independent doctor for Jellico, Tennessee hospital, and he said that he had earned $356,073 in taxable income in the year 2009. In order to hide his income, Grentz took it upon himself to hide his deposits in bank accounts of the companies that he had control over. This allowed him to not file tax returns or pay federal income taxes. Starting in 1999, Grentz said that he avoided paying $900,068 in taxes.

He was indicted on April 6 by a grand jury. As reported through the indictment, Grentz had earned more than $1.5 million from the year 2005 to 2010, yet he hadn’t filed any income tax return since the year 1999.

Grentz will be sentenced on May 16 in London, and he could face up to a maximum of 5 years in prison for his crime of tax evasion. The IRS, along with the Criminal Investigation Division, discovered Gretz’s tax evasion crime and conducted the indictment that will put him behind bars.


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Posted by Taxmaster - April 10, 2013 at 9:37 pm

Categories: Federal Tax, Income Tax, Tax Evasion   Tags: , , , , ,

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