Frankfort Legal Issues Blog

Reality star reports to prison for tax evasion

On behalf of Demetrius J. Karos, Ltd. posted in Tax Evasion on Friday, January 18, 2019.

Michael Sorrentino, a reality star on MTV's hit show, Jersey Shore, has reported to a federal prison near his home to begin serving an eight-month sentence. He was convicted of federal tax evasion after pleading guilty to one count.

According to reports, the star, who is known as "The Situation," engaged in a scheme to cover up some of his multi-million dollar income. He was specifically accused of intentionally making deposits just under the $10,000 threshold in which they get reported to governmental authorities so as to avoid scrutiny of his finances.

Lots of tax changes to ring in the new year

On behalf of Demetrius J. Karos, Ltd. posted in IRS on Friday, January 4, 2019.

With the Tax Cuts and Jobs Act taking effect, 2019 is going to mean a lot of changes to the way people report, calculate, and pay their federal income taxes. Some of these changes will affect a broad range of people, while others may affect residents of the Chicago area in certain situations, such as those who hold multiple properties.

No matter what one's financial background and circumstances are, however, it is important for everyone to keep these changes in mind as they prepare to file returns this year and start the planning process for the years to come. This will enable them to save tax dollars and, in some cases, avoid trouble with the IRS.

Overview of more routine tax penalties

On behalf of Demetrius J. Karos, Ltd. posted in IRS on Friday, December 7, 2018.

Previous posts on this blog have talked about how people accused of tax evasion and other serious malfeasance with respect to their tax obligations may face severe penalties, including the possibility of criminal charges being filed against them.

However, Frankfort, Illinois, residents should not lose sight of the substantial penalties the Internal Revenue Service, or IRS, will impose for much more common and minor offenses.

Your will should change as your life does

On behalf of Demetrius J. Karos, Ltd. on Tuesday, December 4, 2018.

Writing your will probably gave you a certain piece of mind. After all, you may have been hearing from different sources that having a will is essential for protecting your family and ensuring your estate gets to the right hands. Without a will, your loved ones may end up in disputes or even litigation, and this often leads to lifelong rifts within families.

Undoubtedly, writing your will was difficult. You had to carefully consider how life would go on after you passed away. You may also have weighed the need and level of responsibility of each of your heirs to provide an equitable distribution of your assets. It may have been an emotionally draining experience that you do not want to repeat. Unfortunately, failing to revisit your will from time to time may leave your loved ones no better off than if you had left no will at all.

Businessman admits to tax evasion in federal court

On behalf of Demetrius J. Karos, Ltd. posted in Tax Evasion on Thursday, November 22, 2018.

A businessman from a state on the other side of Lake Michigan from Chicago entered a plea of guilty to tax evasion in federal court. According to reports, the man faces up to 5 years in federal prison as well as a hefty fine, but it is not clear what, if any, deals he had made with the government in exchange for a guilty plea.

The man has already agreed to pay restitution to the tune of almost $1.25 million, an amount that the IRS claims the man shorted the government. Apparently, the government already has these funds through a 2016 police raid on the man's home.

Can I go to jail if I cannot afford my taxes?

On behalf of Demetrius J. Karos, Ltd. posted in Tax Evasion on Friday, November 9, 2018.

Most residents of the greater Chicago area probably recognize that owing back taxes to the Internal Revenue Service, or IRS, is a serious legal problem. The IRS has a number of powerful legal tools that it can use to collect tax revenues that are simply not available to other creditors.

Likewise, tax debts are treated differently in the bankruptcy process, making them even more likely to be collected.

What is the difference between a living will and a health proxy?

On behalf of Demetrius J. Karos, Ltd. posted in Estate Planning on Friday, October 26, 2018.

As part of almost any estate plan, a resident of the greater Chicago area is going to want to give some guidance on how she want her health care to go. This is particularly important as the chances of a serious illness increase because the person may not be able to make such decisions for herself, even when those decisions involve life or death.

There are a couple of different estate planning tools that Illinois residents use to ensure that when it comes to their medical care, their wishes are respected. These tools are serve slightly different purposes, and it is important to know the unique features of each.

What can I do if I do not agree with my IRS audit?

On behalf of Demetrius J. Karos, Ltd. posted in IRS on Friday, October 12, 2018.

There are probably very few people in the greater Chicago area who really want to go through an IRS audit of their federal tax returns, even if it is simply a desk audit involving an exchange of correspondence.

The process will involve time and resources, and it may end with the IRS demanding additional tax money, as well as interest and penalties for not paying in a timely fashion. This is so even if the underpayment was not malicious.

As the year comes to an end, you may be looking to save on taxes

On behalf of Demetrius J. Karos, Ltd. on Thursday, October 11, 2018.

It seems as though the months tend to go by faster each year. Before you know it, it's already October, and the holidays are just around the corner. Also just around the corner is the end of the year, which means that you may be running out of time to reduce your taxable income.

However, that does not mean that you are out of time, just that you need to make some decisions soon. You may still be able to save on your taxes, but you may need some guidance before deciding how to proceed in order to protect your interests.

What is so bad about offshore bank accounts?

On behalf of Demetrius J. Karos, Ltd. posted in Tax Evasion on Friday, September 28, 2018.

There is something very alluring about offshore banking that makes it a common theme in movies and novels. Usually, the person engaging in the behavior is, at least implicitly, doing something illegal by using the offshore account or, at best, is trying to cover his tracks.

In real life, people in the Chicago area and in other parts of the country can and do get accused of tax evasion in light of their holding offshore account.