PAT GEORGE: Let’s call roll! Katrina Madewell, are you here?
KATRINA MADEWELL: I’m here!
PAT GEORGE: Darrin T. Mish, are you here?
KATRINA MADEWELL: He’s here. Just not HERE.
PAT GEORGE: Are you here, Darrin?
DARRIN T. MISH: I’m live on air.
PAT GEORGE: We told everybody why you’re not in the studio. Because of that doggone problem on the interstate. Right around West Shore, had two or three lanes blocked. Now finally only one lane is blocked, but still a monster back up.
KATRINA MADEWELL: What’s the deal? What created all of that?
PAT GEORGE: Accident, multi-vehicle. So Darrin had to jump off the interstate and get on Kennedy. You should be on the bridge now, correct?
DARRIN T. MISH: No. I’m still right by West Shore Plaza.
PAT GEORGE: See, it is a mess. The side streets are even a mess.
KATRINA MADEWELL: Waze told him he was getting here at 8:05, but it lied!
DARRIN T. MISH: The GPS can not anticipate other people’s bad driving. That’s what happened. A year ago, if I had to go live on the air from the car, I would’ve been an absolute mess. So I’ve grown! I just think it’s funny at this point because what are you going to do? You’re stuck in traffic. I have a pretty nice vehicle, so I’m comfortable. I’m probably more comfortable than I am in the studio. It’s all good.
KATRINA MADEWELL: I think your truck is bigger than the studio.
DARRIN T. MISH: My seat is more comfortable. That’s for darn sure.
KATRINA MADEWELL: I brought you a little surprise. You’ll have to wait until you get here to see what it is. I brought Pat George back something too. It was my 19th anniversary, as we talked about last week. We had a great time on the boat in Cosmel.
PAT GEORGE: I did not expect this surprise. I was jealous you went. I didn’t know I wasn’t getting the surprise. Now that I got it, I’m glad you went!
KATRINA MADEWELL: He changed his mind. Now the envy is gone.
PAT GEORGE: We’ll give you a hint. It’s healthy for your bones. I found out that agave makes your bones stronger.
DARRIN T. MISH: Oh, so it’s pretty clear what you got.
KATRINA MADEWELL: What else would I buy Pat?
DARRIN T. MISH: Well, since he pretty much lives at Vallarta’s restaurant, it’s not that hard to understand.
KATRINA MADEWELL: It’s either chips and salsa or tequila.
PAT GEORGE: We just decided that Katrina and I are going on a cruise in September. We’re going to go to Cuba.
DARRIN T. MISH: That would be nice.
KATRINA MADEWELL: The fun part of that is going to be painful. I have two work trips planned right in between. If I take that trip with you, Pat, I will be getting back from San Diego on Tuesday, leaving Thursday. Then I have a trip to Austin the week after I get back.
PAT GEORGE: Don’t even make a house payment that month because you won’t even be living there.
KATRINA MADEWELL: My kids are there, it doesn’t count. It’s not the adults that leave the lights on.
DARRIN T. MISH: On our honeymoon, Heather and I went to Hawaii and then we took the red eye back. We landed in Tampa, and we had to drive to Port Canaveral to get on a ship to go on a three-day cruise that was work related. It was funny because we were like walking zombies for those three days. I don’t remember a whole about it other than I was tired 100% of the time.
KATRINA MADEWELL: Was that the one where you said if I’m going to be here, I’m going to have fun and you opened a beer in the class?
DARRIN T. MISH: No.
KATRINA MADEWELL: A different one?
DARRIN T. MISH: That would be my life philosophy, but that was a different experience.
PAT GEORGE: Do you have your whole show plan taped on the dashboard?
DARRIN T. MISH: I’m going to try and look at my notes while I drive. It should be interesting.
KATRINA MADEWELL: He has a chicken story first. I’ll tell you what today’s show is about. It’s all about crazy IRS news stories. That will be kind of fun.
DARRIN T. MISH: There are some crazy ones.
KATRINA MADEWELL: We have this complete hack last week about the things IRS people can do to get fired.
DARRIN T. MISH: At least one of these stories touches upon that because a person not only got fired but also went to prison. A little update, the Howard Franklin is moving fine past Westshore, if you can finagle your way past Westshore.
PAT GEORGE: We know that part. It was not moving fine behind you around Westshore. We have to say hi to one of our listeners this morning that just texted us. Robert is out there listening he says it sounds like you guys are having a lot of fun on the show today.
KATRINA MADEWELL: Thank you, Robert!
PAT GEORGE: We do that all the time.
KATRINA MADEWELL: Is Veterans Expressway still clear? Because I came up the Veterans Expressway and I didn’t hit any of that.
PAT GEORGE: No, there’s a problem by Memorial south bound. It just occurred.
KATRINA MADEWELL: I got lucky.
PAT GEORGE: It has injuries too.
KATRINA MADEWELL: I missed the traffic by my chinny chin chin. By the seat of my pants.
PAT GEORGE: That’s what you have to do, you have to leave your home every morning like you did, at 4 a.m.
KATRINA MADEWELL: We do leave, in all honesty, I think Darrin and I leave about seven, and we usually get here around eight. Usually.
DARRIN T. MISH: Two hours to go 45 minutes ought to be (inaudible).
KATRINA MADEWELL: Hey, you’re from California, you’re used to it.
DARRIN T. MISH: Why do you think I don’t live in California anymore? In case you’re just tuning in, this is the IRS Solution Attorney radio show. Live from the Howard Franklin bridge.
KATRINA MADEWELL: I’m Katrina Madewell. I’m here in the studio with Pat George. We’ll keep you posted on the traffic.
DARRIN T. MISH: Some of you long time listeners might recall the time Katrina was stuck on the Gandy bridge, and I was merciless. I teased her mercilessly. She’s not doing that to me today, so we’re just going to move right along.
We had the big announcement about six months ago. That we moved out to the farm and that I had hatched some chickens. That was going to be my first venture of being a chicken farmer. Or, really, a farmer of any kind. A new big, exciting announcement! We got our first eggs from those hatched chickens in the last week or so. They’re the most expensive eggs I’ve ever eaten in my entire life.
KATRINA MADEWELL: Did they taste any different?
DARRIN T. MISH: They taste good. Eggs are a little bit fresher.
KATRINA MADEWELL: Organic eggs always taste different than store bought eggs. Always.
PAT GEORGE: Really?
KATRINA MADEWELL: Yes.
DARRIN T. MISH: They’re organic free range, cage free, happy chicken eggs.
PAT GEORGE: Are those the brown eggs?
KATRINA MADEWELL: Plus, I don’t know about you, Darrin, but the eggs we get from our father-in-law’s house when we have the chicken, before we gave Hilary (the chicken) to my father-in-law, the yolk is always a brighter yellow.
DARRIN T. MISH: That’s true.
KATRINA MADEWELL: Was that true for you too?
DARRIN T. MISH: That’s true. We have some brown eggs, and we have some chickens that lay kind of small, white eggs.
PAT GEORGE: Is that a lot more cholesterol?
DARRIN T. MISH: I wouldn’t know. There was a hawk out there this morning, and we have some chickens that are walking around that are kind of dumb. The hawk was interested in them, so I might have fewer chickens when I get home this afternoon. I’m not sure.
PAT GEORGE: Because of a snapping turtle, you have fewer ducks.
DARRIN T. MISH: Very sad story on the farm. I had five ducks and then a snapping turtle, we think, got a hold of one of them and tore him all up. Now we have four ducks. That’s the circle of life.
Living man declared dead by IRS for 29 years resurrected by U.S. senator
KATRINA MADEWELL: Shall we jump into our first news story? I’ll get it going and then you can share what you have. This sounds kind of crazy. It says a living man declared dead by the IRS for 29 years was resurrected by a U.S. Senator. So, this guy from Minnesota is a U.S. Senator, he helped a man rectify his struggle with the IRS which declared him dead for 29 years. There’s a news KPSmTV out there reported that Senator Amy Klobuchar is the manager to revised false declarations and the government now recognized that Adam Ronning is alive.
We talked about this once before, and maybe it’s similar. To say you’re dead and you’re not, if you don’t have a social security number, it can be horrible to try and get one. I can imagine how fun this was to try and prove you’re not dead.
DARRIN T. MISH: My first thought and maybe it’s because I’m a cynic, but my first thought was “why would you want to convince them you’re alive?” Think of all the benefits of being dead in the IRS eyes. Can a dead person’s income be taxable? I’m not totally clear on that. I guess so. All kidding aside, I’m sure it was aggravating.
This went on for 29 years. My goodness, does that demonstrate the inefficiency of the Federal government, or what?
KATRINA MADEWELL: Why would you bother after 29 years? I think you have a valid point, Darrin. Why would you want to prove that you’re not dead?
DARRIN T. MISH: Just make cash and don’t worry about it. If they eventually catch you, tell them you’re dead. What, you didn’t get that memo?
KATRINA MADEWELL: This is the ghost of Adam. Can you imagine that, Pat?
PAT GEORGE: No. I couldn’t imagine being dead, and I don’t want to imagine that.
KATRINA MADEWELL: No, but if the IRS thought you were for 29 years, what would you do differently?
PAT GEORGE: I don’t know. They’d catch up to you eventually so I guess I would still continue to do what I’m supposed to do.
KATRINA MADEWELL: Well, you would probably not be our producer because I can’t imagine Beasley would be all in for that.
PAT GEORGE: Exactly.
DARRIN T. MISH: I had a case one time, because I can’t remember how it turned out. A gentleman came in he was in his 60’s. He had been in the Army during the Vietnam era, and the Army assigned him a social security number that was one digit off.
KATRINA MADEWELL: So he rolled off with the new one?
DARRIN T. MISH: I think he tried to use the new one.
KATRINA MADEWELL: You’re going to have to wait until after the break to get the answer to that question. This is the IRS Solution Show. We’ll be back in just a minute.
PAT GEORGE: Still a big mess on southbound 275 around Westshore. There’s a lane blocked and a backup coming out of the interchange and making everybody late, including Darrin T. Mish.
KATRINA MADEWELL: Mr. Darrin T. Mish, who is on the phone. He’ll be in the studio here shortly. I’m your cohost, Katrina Madewell. If you’re just tuning in, this is the IRS Solution Attorney show. This show today is about crazy IRS news stories. We have a full show lined up. So you better hurry up and get here, Darrin.
Before the break, you were saying you had a client that you represented, and his social security is one digit off from the Army?
DARRIN T. MISH: When he was drafted into the Army…I can just imagine some sergeant who is like, here’s your number, but Sergeant, that’s not my number, shut up, that’s your number. He said he tried to change it for many years. He couldn’t get it corrected. This was back in the 60’s. He came to see me in the 2000’s and it still had not been corrected and it was a giant mess. I don’t remember exactly how we got it corrected, but we ultimately did. We got all of the social security credit and what not that were misapplied.
KATRINA MADEWELL: Back then, they didn’t listen. Shut up and get in line.
DARRIN T. MISH: I’m not sure they listen now.
KATRINA MADEWELL: Maybe a little better.
DARRIN T. MISH: Wehn you’re drafted, you’re pretty much…
KATRINA MADEWELL: My grandfather, he’s been gone for awhile now. He had a fake ID when he was younger, and he was in the Army. They had his date of birth wrong with the original fake ID, so he got drafted earlier than he should have been.
DARRIN T. MISH: Talk about bad luck!
Former IRS Revenue Officer Heading to Prison for Tax Evasion
KATRINA MADEWELL: Moving into our next story, this one is interesting. This ties in nicely to what we were talking about last week. A former IRS revenue officer is heading to prison for tax evasion. This person is a former Internal Revenue Service officer. He’s been sentenced to prison for 43 months for tax evasion and correctly endeavoring to impede the due administration of the internal revenue laws, according to the announcement from the department of justice.
According to the documents filed with the court, 1989 through 2014, Henti Lucian Baird of Greensboro North Carolina operated HL Baird Tax Consultants. Baird had previously worked as an IRS internal revenue officer for twelve years. Although he filed tax returns every year he had not paid taxes since 1998.
He used his knowledge and expertise as a revenue officer to evade taxes and avoid paying his taxes. He hid hundreds of thousands of dollars he earned from his consulting business and created bank accounts in the names of his kids to use money orders and cashier checks to pay his personal expenses. Isn’t that wild?
DARRIN T. MISH: The IRS, or the Federal government, doesn’t have the resources to prosecute everybody that commits a tax crime. But a former IRS revenue officer, that’s kind of a splashy case. This guy was working on the inside for the government for twelve years and decided to take the knowledge he had of the inner workings and he used it to help his clients evade taxes fraudulently. We’ve talked about the difference between tax avoidance and tax evasion. Tax avoidance is legal. It’s about the proper planning you do to avoid paying too much tax. Tax evasion is when you wrongfully, you evade paying taxes, and that’s a crime.
KATRINA MADEWELL: I’m looking at the rest of the story and I don’t want you to because you’re driving, but when the IRS tried to collect for this, he submitted a false collection form and he claimed to have one bank account and concealed all of the rest of his accounts. When Baird learned the IRS had become aware of the accounts and intended to levy him, he withdrew the funds before the IRS could seize them.
DARRIN T. MISH: Here’s a funny thing I hadn’t thought about. It sounds like this revenue officer was on the job before computers and the internet became as good as they are now.
KATRINA MADEWELL: You’ll like the next part. We talk about this all the time. It says to stall the impeding liens and levies and evade paying taxes; he filed a cash offer in compromise to settle the tax debt and request to discharge the levies on a nominal account as an application to subordinate his federal tax liens. He’s only showing them this one account.
DARRIN T. MISH: It was probably taken into consideration in sentencing to dissolve the acts he took in furtherance to evade law enforcement, in that case.
KATRINA MADEWELL: They also talked about how during the time he owed the IRS all this tax money, he continued to pay his mortgage on his 4300 square foot home, his annual fees for his timeshare in Florida, car payments on his BMW.
DARRIN T. MISH: You have to be careful. You have to be careful when you’re trying to claim you’re broke, that your lifestyle reflects someone that’s broke. Not a guy that has a timeshare, BMS, and pretty good sized house.
KATRINA MADEWELL: He also says he used the Internal Revenue laws by using his stepson’s identity without his knowledge to apply for a prepared tax identification number, or an EIN. They used the EIN to file over 900 tax returns for his clients, as well as his tax returns.
It’s interesting because this guy specializes in IRS tax problems and delinquent tax returns and offers. The delinquent employee taxes release and levy, he submitted at least 120 Power of Attorney forms to the IRS on behalf of his clients to falsely claim to be an enrolled agent. Even though the IRS revoked this authorization to represent taxpayers in 2009.
If the IRS revokes your authorization to represent taxpayers, Darrin, you can chime in on this one because this is what you do. Let’s imagine it’s you. The IRS revokes your privilege to represent taxpayers; you would have to do something pretty bad, right?
DARRIN T. MISH: There are standards. There is something called the office of professional regulation the IRS has to where if you violate it’s certain ethical rules or charged with a crime, they can suspend or disbar you. That’s what sounds like happened in this case.
KATRINA MADEWELL: He wasn’t even an attorney.
DARRIN T. MISH: Yeah, but you can be disbarred from practice before the IRS. It’s a separate thing. It sounds like that’s what he did and then his lack of respect for the law is what ultimately got him in trouble. I think the 43-month sentence in the federal system is long. It wouldn’t be in the state court system at all, not in Florida. It’s kind of long for federal crimes because they don’t tend to sentence heavily for white collar crimes.
KATRINA MADEWELL: Do you think he’ll serve all 43 months?
DARRIN T. MISH: That’s a good question.
KATRINA MADEWELL: Do you think they’ll reduce it a little bit?
DARRIN T. MISH: I think the federal system does have some gain time. The state of Florida, for example, you can only get 15% knocked off for good behavior.
KATRINA MADEWELL: Do you ever wonder, someone like that, used to work for the IRS, doesn’t anymore, He’s no longer allowed to represent people. He falsely identified someone else’s information to get an employer identification number, and now he’s in jail. What’s he going to do when he gets out?
DARRIN T. MISH: Not only that, he’s going to have millions of dollars in restitution as well.
KATRINA MADEWELL: I didn’t even think about that.
DARRIN T. MISH: Yeah, he’s going to have millions of dollars of restitution. He’ll be on probation.
KATRINA MADEWELL: They’ll be seeking that?
DARRIN T. MISH: I’ve spoken to a number of people over the years who have large restitution amounts for similar crimes. What happens is they ultimately get off for probation, but they have to pay the restitution basically for the rest of their lives. Let’s say you are in your mid-40’s and you have a four million dollar restitution order, which would not be uncommon. They’re alleging this guy helped many people evade paying taxes. His restitution is going to be in the millions, and his ability to pay because he’s a convicted felon…
KATRINA MADEWELL: What’s your new career? Horticulture.
DARRIN T. MISH: Well, let’s hope not for him. He’s going to pay $100/month or something for essentially the rest of his life or until the government agrees he can’t afford to pay anything on the restitution. It’s one of those things that people’s decisions they make when they decide to commit crimes, it makes you scratch your head. I believe there’s almost unlimited opportunity out there in tcountryunty and in this world and to decide to commit crimes to make a quick buck is just lazy thinking.
KATRINA MADEWELL: It’s a decision, it’s just that. When we come back, we’re going to get to the next story. And it’s IRS crime team nabs awards for an investigation into the dark web. We’re going to talk about drugs and bitcoin when we come back in just a minute.
KATRINA MADEWELL: Is that allowed, Pat?
PAT GEORGE: We have a dump button if we need it.
KATRINA MADEWELL: You’re listening to the IRS Solution show. Mr. Darrin Mish is finally in the studio with us, and we’re going to finish the rest of the show in just a minute. Stick around.
PAT GEORGE: Beauford T. Justice is out in the parking lot right now looking for you.
DARRIN T. MISH: I can proudly say I did not speed today.
PAT GEORGE: He said you did.
DARRIN T. MISH: There wasn’t much opportunity to speed today.
KATRINA MADEWELL: His truck isn’t capable of speeding.
DARRIN T. MISH: I might have exceeded the speed limit on 4th street.
PAT GEORGE: That’s why he’s here.
DARRIN T. MISH: For those of you who aren’t familiar with it, the offramp from 275 to Fourth St North is really a long stretch of very wide road with nobody on it, so it’s kind of hard not to go a little too fast.
KATRINA MADEWELL: Darrin was a little late this morning, coming into the studio, but he made it. By the way, the day I was late because people listen, I told you this, I’ve been out and I’ve talked to people and they’ll say, “Oh, yeah, I know you. I remember the day you were late to the studio.” I was late to the studio ONE day! People remember. This will be the one day people will remember you’re late.
DARRIN T. MISH: It was a product of my insecurity that I made so much fun of you that day. I’m less insecure now so we can just move right along.
KATRINA MADEWELL: I was nice to him. I saved him. If you’re going to be late, you picked a good day. The topic of today’s show is Crazy IRS News Stories. It’s a good thing we didn’t have to talk about offer in compromise or something because we probably would have gotten something wrong.
DARRIN T. MISH: I could do it.
IRS Crime Team Nabs Award For Investigation Into The Dark Web, Drugs & Bitcoin
KATRINA MADEWELL: It’s a good thing Pat and I didn’t have to talk about it. This next story talks about the IRS crime team. The Secretary-Treasurer Steven Mnuchin helped kick off the third annual law enforcement award ceremony for financial crimes and enforcement network and the Department of Treasury (FinCEN). Each year, (FinCEN) presents awards to law enforcement agencies. Bank Secrecy Act (BSA).
DARRIN T. MISH: Here’s the bottom line on this story. There were some people on the dark web. The dark web is the part of the internet where normal people can’t find. It’s hidden from our sight. People use it for nefarious purposes. Human trafficking, drugs, hacking, credit card offenses. It sounds like the federal government is trying to catch up or be on top of this dark web stuff. There were some people who were trafficking drugs, methamphetamine, and they were using what’s called Tor Software. It’s not like a web browser.
KATRINA MADEWELL: You know a lot about this stuff, Darrin.
DARRIN T. MISH: It’s like some special software that helps you access the dark web so you can try and hide your identity. They were trading methamphetamine for bitcoin, which is even weirder. Instead of cash, they were using bitcoin. I’m kind of fuzzy on what bitcoin even is.
KATRINA MADEWELL: How many people accept bitcoin?
DARRIN T. MISH: It’s becoming more and more, especially on the dark web, more tradeable. Bitcoin is like a fake currency that’s used on the internet.
KATRINA MADEWELL: Who created Bitcoin? Do we know?
DARRIN T. MISH: I don’t even know. The bottom line was the IRS they figured it out. They brought some people to justice. They charged them with tax crimes. Remember, Al Capone wasn’t brought down for running booze or for killing people. He was brought down for not paying the taxes on his moonshine activities.
The Department of Treasury and the IRS is hard at work doing the same thing. When I had lunch with a former justice department attorney that prosecuted tax crimes, I asked him why they don’t prosecute my clients? They’re all non-filers. He turned out to be a nice guy. He said it’s just not sexy. It’s a misdemeanor; we don’t have the resources to prosecute every non-filer. But we will throw a non-filer charge on there if there’s some other illegal activity. Drug trafficking or things like that, we’ll tack on the tax charge because that helps.
Of course, we then had to talk about Al Capone.
KATRINA MADEWELL: It was a good experience for you, I’m sure.
DARRIN T. MISH: Absolutely. It was interesting to hear that they could, but they just don’t because it’s not fun.
KATRINA MADEWELL: You’ve always said this on the show, their goal is to get you back in the system.
DARRIN T. MISH: We talked about that as well. The goal is to get them back in the system.
KATRINA MADEWELL: If you keep rubbing salt in the wound, they’re less likely to cooperate.
DARRIN T. MISH: We talked about the former revenue officer that’s going to do 43 months. I guess that guy will be back in the system, making minimum wage.
KATRINA MADEWELL: If he’s lucky. I don’t think he’ll be able to even get an EIN.
DARRIN T. MISH: Not a new EIN, not for a business. I don’t know. It might be a condition of his probation, that he not be self-employed.
NC woman mistakes real IRS for scam, ignores officer
KATRINA MADEWELL: That was my thought. The next story is pretty cool, it reminded me of something, which I’ll share. This North Carolina woman, she mistook a real IRS agent for a scam and she pretty much just ignored the IRS officer. It was Kathy Robbins out of North Carolina, she vowed not to fall for IRS scams. We talk about those all the time. So when someone claimed to be with the agency, left a note in her mailbox, she ignored it. The person really was with the IRS. According to her, she said it didn’t look right. I never heard of a legitimate IRS communication where you tape an unclosed document with scotch tape to someone’s mailbox. Are they allowed to do that?
DARRIN T. MISH: Yeah, they are. Here’s probably what happened. The revenue officers have been trying to reach this person. The revenue officer’s job is to come out and make contact and try to get in touch with them that way. If the taxpayer isn’t there, which I’m sure happens a lot, then they’re supposed to leave their business card and/or note. I think this is a case of wishful thinking on the behalf of Miss Kathy Robbins. It’s hard to imagine that she didn’t know she was behind on some taxes. I think she was just saying it looks like a scam, that’s the story I’m going to go with. It’s funny it was picked up by the media.
Two women sentenced in $1.5 million IRS refund scheme
KATRINA MADEWELL: We’ve talked about this one a lot. I’ve been waiting for this one, so I’m glad it’s part of the show. There were two women just sentenced to 1 1/2 million IRS refund scam.
DARRIN T. MISH: I have some friends who are in law enforcement in Tampa police department. Typically, they would do auto thefts and drug crimes. They noticed this guy in the neighborhood who was driving a chromed car. They figured he must be doing something illegal because that’s really expensive and we follow him all the time, and he doesn’t go to a job.
Ultimately, they went ahead, and they pulled him over and found the console full of IRS refund checks.
KATRINA MADEWELL: This is the same story. They nabbed these two women, Jenkins and Lingley out of North Carolina. They stole over $20,000 in tax refunds.
DARRIN T. MISH: $20,000 is peanuts compared to what they’re doing here in the Tampa Bay area.
KATRINA MADEWELL: I haven’t heard many in the news.
DARRIN T. MISH: This says they got over a million and a half. That’s a lot more believable.
KATRINA MADEWELL: Oh, they have to pay back $20,000.
DARRIN T. MISH: Well, they’re going to get a good deal. One of the gals got two years, three years of probation and has to pay back $20,000 of the 1.5 million that she stole from the United States government. I’m no big fan of big government, I make no bones about that. The government does need to get a handle on this. They need to put some controls in place so it’s not so simple to scam. These are not brain surgeons who did this.
KATRINA MADEWELL: The problem is, this is not a priority.
DARRIN T. MISH: Apparently not.
KATRINA MADEWELL: That’s why I’m surprised it’s in the news. We’ve seen it on our end that people can’t buy a house and they think they’re filing fake tax returns, like they fraudulently filed returns and swooped the refund.
DARRIN T. MISH: It’s becoming a bigger problem. It’s happened to people in my office. I’ve had ID theft issue where someone filed a return claiming a larger refund. The funnier things that happened is my clients that haven’t filed a return in 10-15 years, and they’re going to owe a bunch of money, and someone swoops in and files one of these and claims a refund. I have to tell you, when I’m reviewing the transcripts just to let that one go. You can see it’s fake. We don’t do that. We go ahead and report it as fraudulent and report the income because there could be other problems if you just let it slide.
This is a big problem, this ID theft. Particularly the false refunds. The funniest thing about the story with the TPD and finding the car is there’s a chrome car, and there are checks in the cabinet of the car. TPD went to the IRS and said, hey, we found this, and you need to do something about it. The IRS said they can’t do anything about it because of taxpayer confidentiality concerns. That’s just silly.
Michael Jackson’s lawyers claim IRS’ witness perjured himself in tax trial
KATRINA MADEWELL: They’re clearly not all his returns. Or W-2’s. So, Michael Jackson is in the IRS world tax headlines. His lawyers claim that the IRS witness perjured himself in a tax trial.
DARRIN T. MISH: Apparently there’s a billion dollar tax trial of the century pertaining to Michael Jackson’s estate, and it involves Whitney Houston in some way. I guess there was some cooperation or maybe they wrote a song together, it’s not really that clear. The IRS put a witness son the stand to discuss how much the value of it was. Michael Jackson’s attorneys are claiming the IRS star witness perjured himself, lied on the stand. Not that hard to believe. Having done trial work for many years, I’ve seen all kinds of people lie on the stand. It’s not even rare.
KATRINA MADEWELL: This is a big deal too. It’s a billion dollar tax trial.
DARRIN T. MISH: That makes you think if there are a billion dollars at stake, is it more likely or less likely that someone would lie on the stand?
KATRINA MADEWELL: Oh, without a doubt.
DARRIN T. MISH: I think it’s a little bit more likely. I’ve seen law enforcement lie on the stand about a stop sign ticket. I kid you not.
KATRINA MADEWELL: For what?
DARRIN T. MISH: They just, sometimes, I’m not saying anything bad about all law enforcement.
KATRINA MADEWELL: What are they saying?
DARRIN T. MISH: You can prove it, and they’ll just lie. They lie because they want to win.
KATRINA MADEWELL: Who usually wins in that?
DARRIN T. MISH: In traffic court? Usually the government. I always said I would rather defend a robbery than a speeding ticket. It’s easier to win the robbery.
PAT GEORGE: Just remember, always say no contest.
KATRINA MADEWELL: I want to talk to my lawyer, don’t say anything.
DARRIN T. MISH: That’s legal advice from Pat George.
KATRINA MADEWELL: If you have a tax problem, call Darrin at 888-GET-MISH.
DARRIN T. MISH: That’s 888-438-6474.
KATRINA MADEWELL: We’ll be back in just a minute, after the break.
DARRIN T. MISH: Welcome back to the IRS Solution Attorney show. I am the IRS Solution Attorney, Darrin T. Mish.
KATRINA MADEWELL: He’s in the studio, and I’m here too, your cohost Katrina Madewell.
DARRIN T. MISH: We are in fact, both here live in the studio. I probably sound a little better than I did from the car.
KATRINA MADEWELL: If you missed the earlier part of the show, Darrin was running a little bit late.
DARRIN T. MISH: Completely beyond my control. I had two hours to go 45 miles.
KATRINA MADEWELL: How’s the Howard Franklin doing there, Pat?
PAT GEORGE: It’s still blocked.
KATRINA MADEWELL: How many miles?
PAT GEORGE: Right now it’s at least backed up to the interchange. If you’re in it, it seems like it’s backed up to Brooksville.
KATRINA MADEWELL: If you’re late for work today, it’s probably a good day to just not go in.
IRS ‘drains’ Tori Spelling and Dean McDermott’s bank accounts
DARRIN T. MISH: I considered just turning around. I can do the entire show from the truck today. Today’s topic of our show is crazy IRS news stories. Our last one for the show today is all about Tori Spelling. You may recall Tori Spelling. She played Donna on 90210.
The interesting thing about Tori Spelling is she is the daughter of Aaron Spelling. Tori grew up fabulously wealthy. He was the creator of not only 90210, but Charlie’s Angels, and a lot of other very successful TV shows. She grew up in Beverly Hills and grew up super wealthy. She doesn’t know any different. The IRS apparently levied her bank accounts last summer. She’s married to another star named Dean McDermott, apparently. Apparently, they owe over $707,000 to the IRS. Their bank accounts were levied.
KATRINA MADEWELL: That’s only from their 2014 tax bill, they probably owe more than that.
DARRIN T. MISH: It sounds like Tori has a little bit of a spending problem. She even said in the newspaper article that it’s no mystery why I have money problems. I grew up rich beyond anyone’s dreams. Even when I try to embrace a simpler lifestyle, I can’t seem to let go of my expensive tastes.
We talk about how politicians are out of touch, and they live in their ivory towers. Here you have a Hollywood star that just can not relate. If you just know somebody, if you have friends that live in $20,000 a month or $40,000 or even $50,000 a month, normal people tend to think of them as well off. This is somebody who is living on potentially hundreds of thousands of dollars a month and can’t figure out how to make it work.
In her defense, she probably does live in Bel Air or Beverly Hills where your housing payments could be around $50,000/month.
KATRINA MADEWELL: At this point, shouldn’t she have enough money to pay cash? Or pay it off?
DARRIN T. MISH: She has some connection to Tampa because I’ve flown on the same plane as her in the past, from Tampa to LA. So, I don’t know what she’s doing here, but I’ve seen her more than once on that flight.
KATRINA MADEWELL: We should send her to FPU. We’ll put her through Dave Ramsey’s course. You have to pay cash for everything.
DARRIN T. MISH: I don’t think she could relate.
KATRINA MADEWELL: Right after you pay your American Express. No American Express for you.
DARRIN T. MISH: She was riding in front of course. Hey, Tori, if you’re listening, you should call the IRS Solution Attorney at 888-438-6474. I do represent people all across the country.
KATRINA MADEWELL: Including some stars.
DARRIN T. MISH: I had a call one time, and I didn’t take this case, but I call from a female R&B singer, she’s a household name. I’m trying to think of a household name that isn’t her. Who’s an R&B singer that’s a female?
PAT GEORGE: Gladys Knight?
DARRIN T. MISH: It’s probably bigger than Gladys Knight. Not as big as Beyonce.
PAT GEORGE: Aretha Franklin?
DARRIN T. MISH: Yeah, someone like that. She was getting expensive bad advice from some tax attorney in Century City, CA.
PAT GEORGE: Queen Latifah?
DARRIN T. MISH: Bigger than Queen Latifah. Not literally bigger, Queen Latifah’s kind of large. This show has degenerated. It started out bad and got worse.
This is the segment of the show that I call the IRS Train Wreck of the Week.
KATRINA MADEWELL: Before we get to your train wreck, this week Darrin was late. We’ll have 30 seconds before we end, but 888-404-1010 if you’re listening, we heard from one guy. I want to know what you think about today’s show. Was it in the toilet, or did you have fun?
PAT GEORGE: Whitney Houston?
DARRIN T. MISH: Not as big as Whitney Houston, that’s for sure. I can’t even remember. You might have already named her.
PAT GEORGE: Diana Ross?
DARRIN T. MISH: Not as big as Diana Ross.
PAT GEORGE: Toni Braxton?
DARRIN T. MISH: This case is not settled, but my client was in real estate back in the heyday, and he managed to rack up a tax bill of 199,000 and change. In the meantime, real estate crashed in about 2008.
KATRINA MADEWELL: 2007 was the beginning of the downswing.
DARRIN T. MISH: I can remember the end of 2007, I thought there was no real estate crash happening. That it was all media spin. By the way, I do believe the media had a big role in it.
KATRINA MADEWELL: Of course, they did.
DARRIN T. MISH: This gentleman ended up owing close to 200 grand. After 2008, his financial fortunes crumbled and then he started to have health problems, which is common. When you’re having financial problems, the natural next thing is you start to have emotional challenges, and then your body starts to break down.
As far as I recall, he’s renting a room from someone right now. He’s really in hard times; he’s not making much money. I think it’s the physical challenges that have him so far down. Plus, the emotional toll of owing the IRS 200 grand.
KATRINA MADEWELL: Yeah, but in this market, he should be able to make that up.
DARRIN T. MISH: We filed an offer in compromise for him, and we offered the IRS a whopping $250. So, think about that. We offered $250 on $200 grand, and it looks like the IRS is going to recommend that for acceptance. It looks like they’re ultimately going to take that. The moral of the story is not that you should let your life get to the point where you’re renting a room from somebody, but if you are in that situation and you owe the IRS lots of money, there very well could be a silver lining.
I like to say, and I try to live by this, in every challenge, therein lies an opportunity and it’s your job as the person going through the challenge, to try to find that silver lining to try and find that opportunity.
KATRINA MADEWELL: There’s always something.
DARRIN T. MISH: There’s always something. Every time I’m feeling sorry for myself, I have to step back. I look at the challenges I’m going through and I say, ok, there’s an opportunity. We’re going to laugh about this some day.
KATRINA MADEWELL: You pay for your education one way or another.
DARRIN T. MISH: That is a true statement.
KATRINA MADEWELL: I know many people that do not have four-year degrees and have made mistakes bigger than you could imagine.
DARRIN T. MISH: With experience hopefully comes wisdom.
KATRINA MADEWELL: You’re listening to the IRS Solution Attorney show. We had fun with you guys today. I hope you had fun with us poking at Darrin for being a little bit late.
You can get Darrin at 888-GET-MISH
DARRIN T. MISH: That’s 888-438-6474. Visit the website at getirshelp.com. You can download the podcast and download the app.
KATRINA MADEWELL: Getirshelp.com. Thanks for joining us.
DARRIN T. MISH: For today, we’re out.