Posts tagged "income tax"

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: , , , , , ,

Lawyer accused of not paying federal income tax for 5 years

A former Whitehall prosecutor, Lumumba Toure McCord, has been recently indicted on charged that state that he failed to file federal tax returns or pay federal income tax for the past five years.

A federal grand jury indicted MCord, also known as Toure McCord, this week on five charges of his failure to file tax returns with the Internal Revenue Service (IRS).

The indictment stated that McCord, age 41, of 851 Kenwick Rd. D, made approximately $355,000 in gross income from the years between 2006 and 2010.

McCord was formerly the chief prosecutor for Whitehall in 2000 until he was fired that June after he was arrested on two charges of interfering with custody plans for this 2 year old son. The jury had found McCord not guilty of the charges; however, he was not reinstated to his job in Whitehall for reasons that were not presented to the public, although it is most likely because of the two charges for his interference of custody plans that he had with his son.

McCord has worked as defense attorney for a lengthy 10 years, and has represented quite a number of defendants, especially those in high-profile cases in Franklin County Common Pleas Court. Agents from the Internal Revenue Service have investigated McCord on the tax charges that are going against him. So far, there has not been a set date for McCord’s first appearance in a federal court.


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Posted by Taxmaster - July 5, 2013 at 8:43 pm

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

The Federal tax refunds are running behind

Tax refunds are supposed to be coming soon, and everybody obviously enjoys those wonderful little checks. However, this tax season isn’t going as planned since the amount of tax refunds is lagging.

The IRS isn’t exactly showcasing any numbers on how many federal tax refunds have been issued so far this tax season, but we know that refunds have gotten off to a bumpy start so far.

The stars simply aligned perfectly for a lag in federal tax refunds. There was a late launch to the start of the filing season, as it started on January 30, which is 8 days off of the normal start date. This happened because of a last minute, fiscal cliff tax change that got the green light by Congress. There was also the inability of taxpayers to file for credits until early March, in addition to the time-consuming analysis of tax returns. This was due to the IRS trying to improve on their efforts to filter out identity theft and tax refund fraud.

Even big companies like Wal-Mart are feeling the late start to the tax refunds. This time last year, Wal-Mart cashed out about $3 billion worth of checks that were related to tax refunds. Currently, that amount is just $1.7 billion.

Tax professionals have noticed many disappointed tax filers who can’t file their taxes yet or whose refunds are taking longer than usual to arrive. The process of the tax refunds is picking up a bit, but it still isn’t back to normal.





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Posted by Taxmaster - June 25, 2013 at 8:40 pm

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

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