Accounting
Tax Fraud Blotter: On the record
On the record
Chicago: Attorney Michael Abramson, of Wilmette Illinois, has been convicted of tax fraud, attempting to tamper with a witness and violating a court order.
Abramson filed and caused to be filed false individual returns for himself and false corporate returns for a company in which he held an ownership interest, Illinois-based Leasing Employment Services Co. Inc.
Abramson also provided more than $1 million for personal expenses to a woman with whom he was romantically involved, then deducted what were falsely characterized as commissions or loans and included the fraudulent loans as an asset on the company’s returns. The expenses included money for a condo, luxury automobiles and travel, shopping and restaurants.
Following the indictment in this case, the court ordered Abramson not to contact witnesses, including his bookkeeper. Weeks before trial last February, Abramson gave the bookkeeper a copy of her previous court testimony on which he had handwritten notes changing or otherwise scripting her answers. The bookkeeper turned the transcript over to law enforcement.
Sentencing is May 1.
Mustang, Oklahoma: Education official Kim Weinrich has pleaded guilty to wire fraud and to making and subscribing a false return.
Between 2014 and April 2022, Weinrich was employed by Mustang Public Schools District as payroll supervisor and was promoted to director of payroll services in 2021.
Beginning in 2016, Weinrich manipulated the district’s payroll accounting software to increase her net pay each period, depositing the stolen money into her personal bank account. Weinrich’s scheme also resulted in several district employees underreporting federal and state withholdings.
Between July 2016 and April 2022, Weinrich defrauded the district of some $471,657.91.
She also manipulated the payroll software to make it appear as if she’d paid substantial federal income taxes when she’d had no federal income taxes withheld. In April 2022, she filed a federal return reporting income of $91,295, substantially lower than her real income from the scheme.
She faces up to 23 years in prison and fines up to $350,000.
Newark, New Jersey: A federal court has held in contempt tax preparer Abraham Taylor, a resident of Florida and formerly of New Jersey, for continuing to prepare returns after the court permanently barred him and his business, Chentay Consulting Services LP (d.b.a. CCS Tax Services) from preparing federal income tax returns for others.
According to the court’s order, Taylor concealed his violations of the permanent injunction by using e-filing privileges assigned to Fredrick Gibson, of Uncle Sam Tax Services in Pennsylvania. Taylor agreed to the entry of the contempt order and a disgorgement judgment; Gibson agreed to forfeit his e-filing privileges.
Taylor was held in contempt in 2021 for using e-filing privileges assigned to his son O’Neal Taylor and his son’s business. Through the contempt order, Taylor agreed to a disgorgement judgment and O’Neal agreed to forfeit his e-filing privileges.
The most recent contempt order requires Taylor to provide the U.S. with a list of his clients and to send a copy of the court’s injunction order to all clients for whom he prepared returns. It also provides that the court can order the sale of Taylor’s house to satisfy the two disgorgement judgments if he continues to prepare returns.
Washington, D.C.: CPA Timothy Trifilo has pleaded guilty to making a false statement on a mortgage loan application and to failing to file an income tax return.
Trifilo worked in tax compliance for several large accounting and finance firms. In recent years, he was managing director at a tax firm where he specialized in transaction structuring and advisory service, tax compliance and tax due diligence.
For a decade, Trifilo did not file federal income tax returns or pay all his taxes despite earning more than $7.7 million during that time. He caused a tax loss to the IRS of $2,057,256.40.
In February 2023, Trifilo sought a $1.36 million bank-financed loan to purchase a home in the District of Columbia. After the mortgage company told him that the bank would not approve the loan without copies of his filed returns, Trifilo provided the mortgage company with fabricated documents to make it appear as if he had filed returns and provided copies of 2020 and 2021 returns that Trifilo in fact had never filed with the IRS.
On these returns and other documents, Trifilo listed a former colleague as the individual who prepared the returns and uploaded them for filing with the IRS. This individual did not prepare the returns, had never prepared returns for Trifilo and did not authorize Trifilo to use his name on the returns and other documents. Based on false representation, the bank approved the loan and Trifilo purchased the home.
Sentencing is May 19. Trifilo faces up to 30 years in prison on the charge of making a false statement on a loan application and a maximum of a year on the charge of failure to file a tax return. He also faces a period of supervised release, monetary penalties and restitution.
San Diego: Business owner Wahead Raz has pleaded guilty to paying an IRS officer $35,000 to erase a six-figure tax debt.
On July 23, Raz offered the bribe to an IRS revenue officer during a meeting at the San Diego IRS office to discuss his outstanding tax debt of some $500,000. After the meeting, the IRS officer reported the bribe to the Treasury Inspector General for Tax Administration and agreed to be part of an undercover operation.
The next day, TIGTA video-recorded a meeting between the IRS officer and Raz during which Raz told the officer that he could pay in cash so the bribe would not be traceable. On July 25, the IRS officer recorded a call during which Raz said, “If you save me money, then I’ll take care of you,” and asked the officer to name a price. When the officer asked for $30,000, Raz countered with $20,000. After the IRS officer insisted on $30,000, Raz agreed, offering to pay $10,000 up front and the remaining $20,000 when the debt was cleared.
On July 30, TIGTA recorded a meeting between the IRS officer and Raz during which the latter provided the $10,000 cash and asked the officer to eliminate some $50,000 in tax debt owed by Raz’s business; Raz offered to pay the officer an additional $5,000 to have that debt cancelled.
On August 22, TIGTA recorded another meeting during which Raz gave the officer $15,000 in cash and told the officer he did not have the entire $25,000 originally agreed upon. On August 29, Raz paid $10,000 cash to complete the bribe. During two of the recorded meetings, Raz also offered to introduce to the officer other “clients” who also owed federal taxes and said he would introduce the agent once Raz’s tax debt was cleared.
Sentencing is March 19.
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The pricing of accounting services is a big concern and it should be. My definition of pricing services properly is that if, at the end of the year, you’ve made your living, funded your retirement account, and had money left over to maintain and build your infrastructure, you’re pricing your services OK. If you have something left over after that, then good for you, you are doing it right and you should enjoy that profit. But the minimum is the first three things.
I get frequent calls about this. My advice is to increase fees at a uniform percentage to make up for the shortfall going forward. Here is how to go about this.
The first step is to calculate the shortfall. By way of illustration assume you are grossing $250,000 and have a $30,000 shortfall. $30.000 ÷ $250,000 = 12%. This means your fees need to be increased 12% in total. This assumes these are your numbers for the current year. If these are last year’s numbers, then project your shortfall for the current year and use that.
The second step is to increase the fees for every client immediately by 12%. If you have contracts, you might not be able to do this, but if you have an arrangement that doesn’t lock you into a price no matter what, then increase those clients, which should be most of your clients. If the contractual fees are substantial, then factor that in and you might need a larger percentage increase than the across-the-board calculation.
The third step is to start contacting your larger or more important clients. Start with them but plan on contacting every client. I personally call everyone. They all pay your salary, so make the call. If they were a new client, you would do somersaults to get them. Here, all you need to do is call them. I suggest telling them something similar to this:
“I regret that I have to increase my fees with you. My overall fees are too low and I am not making what I need to provide my living, fund my retirement account and have sufficient funds to maintain my practice with needed maintenance, technology changes and technical update notifications. Accordingly, as much as I hate to do this, I am forced to increase the fees for all of my clients 12% effective the first of next month. This is not something I like to do, but I have to do it so I can continue the level of services my clients are accustomed to and deserve. This is the only way that makes sense. I know you will understand, and if you want to think about it and have another discussion, please call me. I appreciate you being a client and know we will continue our successful collaboration.”
I used an illustrative amount, but this method works for any size practice, from a solo to a large multioffice practice. The reality is that if there is a shortfall, this needs to be done.
Alternatives like getting more business is a way to grow your practice, but at your present level with the shortfall from your established clients and existing workload, the issue isn’t growth but maintaining the status quo. Being immersed in tax season means now is not a good time, but neither is any other time. Delaying this inevitable action will just make the situation worse. You are a businessperson and need to act like one and your revenues need to reflect this.
Do not hesitate to contact me at
Deloitte China has selected its first female chief executive officer from its local talent pool in mainland China, according to people familiar with the matter.
Dora Liu will become Deloitte China’s new CEO on June 1 for a four-year term, according to an internal email in January seen by Bloomberg News. She will take over responsibilities from Patrick Tsang, who will complete his second term on May 31, Its unclear what Tsang will do next.
Deloitte China didn’t respond to a request for comment.
Mainland-born Liu
President Donald Trump expressed optimism about negotiations in Congress to push forward his agenda on taxes and immigration, declaring that his party’s political movement will have lasting staying power in Washington.
Trump reprised many measures of his first month back in the White House in a speech to the Conservative Political Action Conference, telling the friendly audience he’s confident the Republican Party will beat the historical odds and avoid a voter backlash in next year’s midterm elections.
“I think we’re going to do fantastically well in the midterms.” Trump said. “We’re going to forge a new and lasting political majority that will drive American politics for generations to come.”
Trump’s remarks on Saturday wrap up another CPAC that offered rapturous support for the Republican president. Attendees over the course of this year’s three-day conference were treated to a parade of Trump allies, including members of his administration as well as foreign leaders who are in ideological lockstep with the Republican president on key issues.
Much of Trump’s agenda hinges on a spending package currently being debated by Republicans on Capitol Hill to extend his 2017 tax cuts and funnel money to immigration enforcement agencies. GOP divisions have played out in the House and Senate, with the chambers diverging on a single-bill versus a two-bill strategy.
Even as lawmakers wrangle over the approach to key measures, Trump said Senate Majority Leader John Thune and House Speaker Mike Johnson “have done a fantastic job” so far.
Budget hawks have set out to lower spending, although proposed changes to the tax code threaten to raise the nation’s deficit. Trump criticized lawmakers who disagree with the broader party’s approach, saying “every once in a while, you have one who wants a little action.” He added: “I just hate to see it, but they’re sticking together.”
The annual CPAC gathering outside Washington draws conservatives from across the world and has been friendly turf for Trump, including in the years when he was out of the White House. In 2023, he used an appearance there to fuel his reelection bid, even as polls at the time showed many GOP voters were open to an alternative, telling attendees that “I am your retribution.”
Last year, he spoke at the event with the Republican primary contest all but wrapped up, using his address to pivot to the general election contest.
Billionaire Elon Musk, the face of the president’s initiative to slash the federal government’s workforce and spending, appeared on Thursday wielding a chainsaw and a black cap emblazoned with Trump’s signature “Make America Great Again” slogan.
The chainsaw was given to Musk on stage by Javier Milei, the far-right populist president of Argentina, who has become a conservative icon for his efforts to use “shock therapy” to revitalize his country’s economy. He addressed the conference Saturday, saying he
Another Trump ally, Steve Bannon, sparked controversy during the conference when he extended his right arm with the palm down, in a gesture that resembled the Nazi salute. While Bannon denied making a Nazi salute, it led to Jordan Bardella, the president of the French far-right National Rally party, to cancel his speech.
Italian Prime Minister Giorgia Meloni, who has sought to position herself as a key Trump conduit to European leaders, spoke to the conference
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