Companies avert paying taxes AGAIN before their taxes go up
The wealthy are scrambling to take advantage of the current tax code by exploiting the system in mass numbers and driving profits into their pockets before the tax hikes on the rich Obama wants go into effect.
Countless companies including Costco and the Las Vegas Sands have declared what they call “special dividends’ to liquidate tax free capital. This amounts to over $20 billion dollars in this last quarter alone. Other firms are shelling out bonuses, commissions, and dividends early before the wealth bombshell is to be dropped on the wealthiest few.
“We’re going to have a big jump in household income in the fourth quarter” said Crandall. “It’s going to be in excess of $50 billion.”
A majority of this scrambling is occurring in the uppermost crust of the elite. The 2% of the wealthiest Americans will be the benefits of this early cashout. President Barack Obama wants to target these wealthiest of individuals to help solve the fiscal crisis that lies before us by raising their rates.
Of interest in 2009 52% of the 124 billion dividends reported by federal government went to this 2% according to the IRS. A definite symbol of how backwards our world has become with income inequality.
This statistic alone proves just how unequal income distribution really is as the rich get richer and the poor get poorer. The wealth has shifted from labor income to capital income, an income with yields the benefit of lower taxes
How will this increase in taxes effect us in the long run? The rich typically save rather than spend so it is a good indication that a tax increase won’t hurt the economy by too much. It is about time that the wealthy began paying their fair share of this American Dream rather than being the gold tipped parasites that they are.
Categories: Federal Tax, Income Tax, Tax Law Tags: avoiding taxes, corporate tax, federal income tax, federal tax, federal tax fraud, income tax, tax code, tax court, tax evasion, tax fraud, tax law, tax reform
Stephen Baldwin’s latest role….tax evasion
New York – Well known actor Stephen Baldwin failed to pay taxes in his home town of New York for the past three years amassing $350,000 in debt. He skipped paying state taxes from 2008-10 racking up this large sum.
Stephen, the youngest of the Baldwin brothers plead not guilty to the tax charges and was freed without bail. Stephen and his lawyer Russel Yankwitt, disagree about the charges
‘‘Mr. Baldwin did not commit any crimes, and he’s working with the district attorney’s office and the New York State Tax Department to resolve any differences,’’ Yankwitt said.
Baldwin could face up to four years incarcerated if found guilty of these charges. This trial will be held on February 05. These charges would be added on top of the $350,000 dollars in taxes and fees already accrued by Stephen.
‘‘We cannot afford to allow wealthy residents to break the law by cheating on their taxes,’’ the district attorney said. ‘‘The defendant’s repetitive failure to file returns and pay taxes over a period of several years contributes to the sweeping cutbacks and closures in local government and in our schools.’’
Thomas Mattox, the state tax commissioner, said, ‘‘It is rare and unfortunate for a personal income tax case to require such strong enforcement measures.’’
Stephen, 46 is most known for his role in the “Usual Suspects” and “Born on the Fourth of July”. He is also slated to be on “celebrity Apprentice” In March of 2013. Stephen comes from a lineage of famous actors including Alec, William and Daniel.
Stephen recently filed for bankruptcy in 2009 owing over $1.2 million dollars on two failed mortgages over a million in federal taxes and just shy of $100,000 in credit card dept. Things aren’t looking too good for this Baldwin brother.
Only time will tell if this celebrity profile will come clean and pay off its debts. Maybe going after these large scale tax debts could help ease the burden of our fiscal cliff.
Categories: Income Tax Tags: avoiding taxes, celebrity gossip, income tax, tax evasion, tax fraud
Denver man failed to pay $2.5 million in taxes
With a debt of more than $2.5 million in employment taxes and making numerous false claims, a man from Denver now faces a hefty fine of up to $250,000, not to mention the jail time of up to 5 years per count of charge. The man, identified as Lucilious J. Ward was indicted last October 2 by a federal tax jury.
In a statement released by United States Attorney John Walsh, he says “Business owners who withhold their employees’ money for taxes, but steal those funds for their own use, are victimizing their employees and the United States.”
Ward, owner of the business named Global Access, was found to have willfully and knowingly did not truthfully account for the taxes he withheld from his employees salaries, amounting to $2,556,764. This was comprised of Social Security taxes, federal income taxes and MediCare taxes as well. He also fraudulently listed two false claims of federal income tax withholdings, one for $34, 168, and another for $76, 479, attempting to cheat the government of over $110,000 in IRS refunds.
Lilia Ruiz, the Acting Special Agent-in-charge for the Criminal Investigation of the IRS Denver field office, said, “Business owners who withhold and fail to remit employment tax withholdings are merely stealing from their employees and other Americans”.
Although innocent until proven guilty, Ward is still being charged with a total of 19 counts of failure to pay over tax, and another 2 counts of making false claims against the IRS.
Categories: Federal Tax, Income Tax, Tax Evasion, Tax Law Tags: avoiding taxes, federal income tax, federal tax, income tax, tax code, tax evasion, tax fraud