It took almost two years to discover the wrongdoings. The three elements of the Opportunity Triangle are commit, conceal, and convert. Committing the fraud is the starting point. Obviously, this occurred when Griffin decided to falsify the tax credits. Her motivation was mainly to financially assist friends and family.
However, with the persuasion of a few willing individuals along with his high ranking position in the Navy, he was able to orchestrate this scheme to perfection before ultimately getting caught in February of 2011. This scheme took place over a twelve year period from 1999 to 2011 when he used his position in the Navy to direct Russell Spencer, a computer specialist, to submit millions of dollars in fraudulent invoices to Navy contractor Advanced Solutions for Tomorrow. This money was disbursed amongst Mariano and close relatives over a long period of time. Mariano has admitted that little to no work was done for Spencer to receive this money that ultimately ended up in the pockets of Mariano. Ralph has admitted to receiving $3,081,671 of Navy funded checks from Spencer.
She also owns an office building in which she rents out space to tenants. She devotes none of her time to the management of the office building. She has a property management firm make all management decisions for her. During 2011, she incurred a loss, for tax purposes, of $30,000 on the office building. How must Mary Beth treat this loss on her 2011 tax return?
The team looked at the company’s tangible and intangible resources. In the fourth quarter of the simulation the team sprung into action by looking at the company’s financial resources, paying close attention to the firms borrowing capacity and its ability to generate internal funds. The team withdrew $50,000 from the company’s 3 month certificate of deposit and obtained $1 millions from common stocks. With additional capital available the team modified its Elite 101 brand of computers and modified Elite Class and renamed it Top Class. The company now focused its attention on its intangible resources such as Human Resources, Innovation Resources and Reputable Resources.
Pierre had regularly used payments, owed to Staab for trailer registration work, for her personal expenses and without depositing them in Staab's account or otherwise disclosing them to her accountants. The government pointed to diversion of such funds to 10 different St. Pierre accounts and the depositing or diversion of over 3,000 company checks without recording them as company income or paying personal taxes upon them. Records indicated unreported income of $1,248,327 for the three-year period; the taxes avoided by the failure to report this income amounted to over $500,000, apart from interest. The complexities of the tax code have led the Supreme Court to require for tax evasion a consciousness of wrongdoing. Cheek v. United States, 498 U.S. 192, 201 (1991) (“voluntary, intentional violation of a known legal duty”).
In 2013 the couple sold their house for $500,000 and bought a new house for $700,000 in cash. When they sold their house they paid 6% to the real estate agent which in total was $30,000 in fees. They file jointly and had joint ownership of the sold property. Research Issue Is the sale of the home in 2013 made by Mr. Junkiewicz and his wife a taxable transaction? Law and Analysis The taxpayer relief act of 1997 exempted from taxation the profits on the sale of a personal residence of up to $500,000 for married couples filing jointly and $250,000 for singles.
b) Which of the above items are classified as For AGI and From AGI deductions? c) How would your answers to parts (a) and (b) change if Brandy were an employee rather than self-employed and none of the above expenditures were reimbursed by her employer? 7) On February 20, 2015, Charles, who is single and age 32, establishes a traditional deductible IRA and contributes $5,500 to the account. Charles’ AGI is $66,000 in 2014 and $57,000 in 2015. Charles is an active participant in his employer’s retirement plan.
Memo: Cynthia Thomas 2008 Tax Return Audit Deduction for Business Expenses on Personal Tax Return Ms. Cynthia Thomas is the President and sole shareholder of Violet Corporation. Violet Corporation is a calendar year taxpayer, who unfortunately over the past year has fallen into a precarious financial position. Ms. Thomas incurred $9,500 of business expenditures for travel, entertainment, and promotion on behalf of Violet Corporation. Ms. Thomas decided not to get reimbursed for these expenses and instead decided to deduct them on her own personal tax return (1040). Ms. Thomas was unfortunately audited in 2008 by the Internal Revenue Service, and they found that these deductions were disallowed.
Restatement of Financial Results ACC/537 This paper reviews the restatement of financial results of Kodiak Energy, Inc. for the fiscal quarter ended September 30, 2007 and the year ended December 1, 2007. The company was forced to issue a restatement because of financial accounting errors in measurement and in the application of Generally Accepted Accounting Principles in the September 2007 acquisition of the Thunder River assets. On the original financial statement, Kodiak Energy reported issuing seven million common stocks of its company in order to acquire assets owned by Thunder River Energy. In their 10-k and 10-Q statements, Kodiak Energy reported a value of $2 per share at the time of the transaction. However, an investigation by the Securities and Exchange Commission (SEC) revealed
Case Situation (important facts): • New Jersey senator Robert G. Torricelli ran for reelection in 2002 raising more than 2.9 million dollars in campaign funds. • Abruptly quit the race because of “ethical misconduct” Then later was stated “he accepted campaign gifts from a contributor. • Two months after quitting the race he found a lobbying practice called Rosemont Associates that had clients in Taiwan, Puerto Rico, and the United States. • Torricelli gave $10,000 to Illinois Governor and more than $40,000 to a Nevada Democratic party which all linked to the Senate leader Harry Reid. All these politicians had one thing in common which was they all had some influence over Torricelli or his clients business interests.