Archives Aug. 2, 2016

Frank Gangi resided in the U.S. Virgin Islands. The IRS issued summons to investigate whether Gangi was required to pay income taxes. Taxpayer moved to quash the summons. The motion was denied.

Defendants were charged with tax violations based upon evidence seized during the execution of a search warrant issued for drugs.

The United States sought to recover over $3 million of funds that were transferred at a time in which the taxpayer company owed taxes.

Children of taxpayers objected to partial summary judgment sought by the IRS relating to property transferred from the taxpayers to their children at a time when the taxpayers owed taxes.

Taxpayer was represented by counsel at the jury charge conference. The Court found that Defendant did not need to be present.

Tax return preparer was convicted of willfully preparing false tax returns in violation of 7206. Clients not charged in the indictment were permitted to testify pursuant to rule 404(b) to establish intent.

Taxpayer plead guilty to 371 conspiracy charge that the Government asserted involved approximately $2,000,000. However, the Court ordered restitution of $6,457,500 and overruled defendant's objection.

Court found that there was ample evidence that taxpayer conspired to impede the IRS by concealing income by using a non-profit entity and mishandling 1099 forms.

Taxpayers operated a day school primarily on a cash basis: requesting at least some parents to pay tuition in cash, paying teacher salaries in cash, refusing to issue tax forms reflecting income paid to teachers, and, in some cases, encouraging teachers not to file tax returns or report income they earned from the school.