914 Tax

Someone Else Prepared It. You Still Signed It.

September 7, 2026

In July, a Miami man pleaded guilty to filing a false tax return. He’d filed returns for himself and for several trusts he controlled, reporting income the trusts never earned and tax withholding that was never paid. Together, those returns asked the IRS for more than $4.2 million in refunds.

He’s scheduled to be sentenced in October and faces up to three years in prison.

Cases like this almost always start with a pitch.

The Pitch

Someone tells you there’s a way to get back a lot more than you expected. Maybe it’s a preparer who says he knows something the others don’t. Maybe it’s a seminar, a Facebook group, or a video about a trust structure, a special filing, or a provision that lets you recover taxes you supposedly overpaid years ago. There’s usually a line in there about how this is what wealthy people do and nobody tells the rest of us.

The return gets filed. You sign it. And for a while, nothing happens.

Why It Comes Apart

The IRS matches your return against what your employer, your bank, and every other payer already reported. Withholding that was never paid is one of the easiest things in the system to spot. That’s why these cases so often end in a courtroom instead of a correction letter.

When it unwinds, the promoter isn’t the one holding the bill. You are. That can mean paying the refund back with interest, a civil fraud penalty of up to 75% of the underpayment, a $5,000 penalty for a frivolous return, and, when the IRS believes you knew, a criminal referral.

You signed the return. That signature says the information on it is true, and it belongs to you no matter who typed it.

Signs You Should Slow Down

  • A refund amount promised before anyone has looked at your documents
  • A fee calculated as a percentage of your refund
  • A preparer who won’t sign the return or give you their PTIN
  • A refund routed anywhere other than your own account
  • Any strategy explained as secret, suppressed, or something the IRS doesn’t want you to know about
  • Being told not to ask questions, or not to keep a copy

If You Already Signed One

You’re not the first, and coming forward on your own puts you in a much better position than waiting for the IRS to find it. Amended returns, voluntary disclosure, and penalty relief are all on the table, and which ones apply depends on how much time has passed and what the IRS already knows.

Doing nothing is the one option that gets worse every month.

How We Can Help

If you’ve received an IRS notice about a refund or an audit, or you’re worried about a return someone filed on your behalf, call us before you respond to anything.

At Ron Friedman CPA, we review prior filings, deal with the IRS on your behalf, correct returns where correcting them is the right move, and work out a plan to get you back in good standing.

Contact Ron Friedman CPA today for a confidential consultation.

A Seattle Restaurant Owner Spent His Employees’ Payroll Taxes. Ten Years Later, He Pleaded Guilty.

August 31, 2026

Between 2014 and 2024, a restaurant in Seattle’s Capitol Hill neighborhood employed as many as 87 servers, bartenders, and cooks. Every paycheck showed the usual deductions. Social Security. Medicare. Federal income tax withholding.

The money never made it to the IRS.

Across 36 quarters, the owner kept $1,027,362 that had been withheld from his employees’ pay. He also skipped the employer share of Social Security, Medicare, and federal unemployment taxes, another $400,000 on top of that. Total tax loss: $1,446,341. He hadn’t filed his own personal returns since 2014.

In July, he pleaded guilty to willfully failing to pay employment taxes. He faces up to five years in prison and has agreed to pay the IRS back in full.

Why the IRS Treats Payroll Taxes Differently

Most owners who fall behind on payroll taxes aren’t trying to steal from anybody. Payroll is due Friday. The food distributor won’t deliver without payment. The 941 deposit can wait until next month, and next month there’s a little more breathing room.

That’s how ten years happen.

Here’s the problem with that math. The money withheld from an employee’s paycheck was never yours. You’re holding it for the government, which is why the IRS calls it a trust fund tax. Spending it on rent, inventory, or even payroll itself is treated as a serious violation of federal law, no matter what your bank balance looked like that week.

The IRS knows this, and it collects on trust fund taxes harder than almost anything else on its books.

What Falling Behind Actually Costs

  • Penalties and interest that compound quarter after quarter
  • The Trust Fund Recovery Penalty, which moves the withheld portion onto you personally — your house, your savings, your other businesses
  • Federal tax liens and bank levies
  • Criminal investigation when the IRS believes the failure was willful
  • Real harm to your employees, who may lose access to Social Security credits and other federal benefits they already paid for

That last one is what prosecutors emphasized in the Seattle case. The restitution goes to the IRS, but the people who got hurt were the staff.

If You’re Already Behind

You have more options than you probably think, and most of them shrink over time.

The IRS offers installment agreements and other resolution programs for businesses that come forward. It also distinguishes between an owner who’s cooperating and an owner who’s been ignoring notices for six quarters. Getting current on your deposits going forward, even before you address the back balance, changes how your case gets handled.

What doesn’t work is waiting. Every quarter you stay behind adds penalties, adds exposure, and takes options off the table.

How We Can Help

If your business has fallen behind on payroll tax deposits, or you’ve received IRS notices about employment taxes, call us before the next quarter closes.

At Ron Friedman CPA, we work with business owners to figure out where they actually stand, deal with the IRS directly, negotiate a resolution, and protect against personal liability under the Trust Fund Recovery Penalty.

Contact Ron Friedman CPA today for a confidential consultation. The earlier you call, the more options are still on the table.

When You Can’t Pay the IRS All at Once: Installment Agreements Explained

August 24, 2026

Owing the IRS doesn’t always mean you have to pay everything immediately. For many taxpayers, an IRS Installment Agreement provides a practical way to resolve tax debt over time while avoiding aggressive collection actions.

At Ron Friedman CPA, we help taxpayers set up installment agreements that are realistic, sustainable, and strategically structured.

What Is an IRS Installment Agreement?

An Installment Agreement is a formal payment plan with the Internal Revenue Service that allows you to pay your tax balance in monthly payments instead of a lump sum.

Once approved, the IRS generally pauses enforcement actions such as bank levies and wage garnishments—as long as payments are made on time and you stay compliant going forward.

Example: How an Installment Agreement Works

Chris owed $32,000 in back taxes after falling behind during a slow year in his business. He couldn’t afford to pay the balance in full but had steady income.

With professional guidance, Chris submitted the required information and negotiated a monthly payment that fit his budget. The IRS approved the Installment Agreement, stopping collection actions and allowing him to pay down the debt over time.

How We Can Help

Not all Installment Agreements are the same—and agreeing to the wrong payment can create long-term problems. Ron Friedman CPA helps by reviewing your IRS account, determining the right type of agreement, negotiating affordable payments, and communicating directly with the IRS.

If you owe the IRS and need a manageable way forward, contact Ron Friedman CPA today for a confidential consultation to see whether an Installment Agreement is right for you.

The IRS Doesn’t Need to Sue You—Here’s How They Collect Without Court

August 17, 2026

Many taxpayers assume the IRS works like other creditors—that if things get serious, there will be a lawsuit, a court date, or a judge involved. That assumption is not only wrong, it’s dangerous.

The Internal Revenue Service has extraordinary collection powers that allow it to take money directly from you without ever going to court. Understanding how this works can help you recognize when the risk is real—and why waiting for a lawsuit is often too late.

Why the IRS Doesn’t Need Court Approval

Unlike private creditors, the IRS is granted administrative collection authority under federal law. That means once certain notice requirements are met, the IRS can enforce collection actions on its own.

There is no judge, no lawsuit, and no courtroom warning shot. By the time taxpayers realize enforcement has begun, the money is often already gone.

Bank Levies: When Accounts Are Frozen and Drained

One of the IRS’s most powerful tools is a bank levy. When issued, your bank is required to freeze your account—often without advance warning.

After a short holding period, the funds are sent directly to the IRS. This can include checking, savings, and certain investment accounts. For many taxpayers, this is the moment the situation becomes a full-blown financial emergency.

Wage Garnishments: Ongoing, Not One-Time

IRS wage garnishments work differently than most people expect. Instead of taking a percentage, the IRS allows you to keep only a small exempt amount—then takes the rest of your paycheck.

This continues every pay period until the debt is resolved or the garnishment is released. Waiting for a lawsuit means missing the chance to prevent this from starting.

Offsets: Taking Money You Were Expecting

The IRS can also collect by offsetting money owed to you. This commonly includes:

  • Federal and state tax refunds
  • Certain government payments

Many taxpayers are surprised when expected refunds disappear without explanation. By the time they ask why, the funds are already applied to the tax debt.

Asset Seizures and Other Enforcement Tools

In more serious cases, the IRS can seize assets such as vehicles, business equipment, or other property. While less common, these actions are fully legal and don’t require court involvement.

The longer a case goes unaddressed, the more likely aggressive tools are used.

The Most Dangerous Assumption of All

Waiting for the IRS to “sue” before taking action gives the IRS exactly what it needs: time. Silence is interpreted as noncooperation, not inability.

Ironically, many taxpayers who truly can’t afford to pay qualify for protection—but only if they act before enforcement begins.

Final Thought: The IRS Acts First—Courts Come Later (If at All)

If you owe the IRS, enforcement doesn’t start with a lawsuit. It starts with notices—and ends with levies, garnishments, and offsets if nothing is done.

At Ron Friedman CPA, we help taxpayers stop IRS collection actions, understand their rights, and take control before enforcement causes lasting damage.

If you’re receiving IRS notices or worried about what might happen next, contact Ron Friedman CPA today for a confidential consultation. Waiting for court could cost you far more than you expect.

Maryland Twin Brothers Plead Guilty to Tax Evasion

July 30, 2026

Two Maryland brothers are each facing up to five years in federal prison after admitting they hid millions in income and funneled the money through a shell company to avoid paying taxes.

Dennis and Greg March, twin brothers from Berlin, Maryland, each pleaded guilty to one count of tax evasion. From 2017 through 2022, the brothers willfully evaded taxes on both their business and personal income while running several entities, including Elite Marketing Group LLC and Principal Law Group, with a third business partner.

The scheme came down to disguising income as business expenses. The brothers routed payments to a shell company they controlled, then treated those payments as business costs — when they were really distributions to themselves. They also skipped filing required business and personal tax returns altogether.

The money didn’t sit still. Between 2017 and 2022, the brothers pulled more than $3.5 million in cash out of business accounts, and in 2021 they used scheme income to buy more than $2 million in Florida real estate, plus construction of two new homes.

In all, each brother concealed more than $4.5 million in income and failed to pay nearly $1.8 million in taxes. They’re scheduled to be sentenced on November 6.

This case is a reminder that how you label a payment doesn’t change what it actually is. Routing income through a shell company and calling it a business expense isn’t a gray area — the IRS sees through it, and treating personal income as a deductible cost is one of the clearest paths from a tax problem to a criminal one.

If you have back taxes, unfiled returns, or concerns about how income has been reported in your business, don’t wait for it to get worse. Contact Ron Friedman CPA today for a free consultation. We’ll review your situation, explain your options, and help you take the next step toward resolving your tax problem.

Recording Artist “Twista” Pleads Guilty to Tax Crimes

July 23, 2026

A Chicago-area rapper is facing prison time after repeatedly refusing to pay the taxes he owed — even after the IRS and his own accountant told him to.

Carl Mitchell of Crete, Illinois, known professionally as “Twista,” pleaded guilty on June 24, 2026, to five counts of willfully failing to pay income tax for 2019 through 2023. During those years he earned income from performances, album sales, streaming, and royalties. The IRS and his accountants repeatedly reminded him of his tax debts. He refused to pay.

Instead, prosecutors say Mitchell took advances on future royalties through a third-party company — knowing the IRS couldn’t levy those funds — and bought at least four luxury vehicles. His unpaid liabilities date back to 2011, totaling more than $440,000.

He’s scheduled to be sentenced on October 22, 2026, and faces up to one year in prison on each of the five counts.

This case is a reminder that willfully ignoring a tax debt is treated very differently than being unable to pay it. The IRS doesn’t bring criminal charges over an honest hardship — it brings them when someone has the money, gets warned, and still chooses not to pay.

If you have back taxes, unpaid liabilities, or IRS letters piling up, don’t wait for it to get worse. Contact Ron Friedman CPA today for a free consultation. We’ll review your situation, explain your options, and help you take the next step toward resolving your tax problem.

Settling Tax Debt for Less: Offer in Compromise Explained

July 16, 2026

An Offer in Compromise (OIC) is one of the most well-known—and most misunderstood—IRS resolution options. While it can allow some taxpayers to settle their tax debt for less than the full amount owed, qualification is far more limited than most advertisements suggest.

At Ron Friedman CPA, we help taxpayers determine whether an Offer in Compromise is realistic and handle the process the right way.

What Is an Offer in Compromise?

An Offer in Compromise is an agreement where the Internal Revenue Service agrees to accept less than the full balance owed when it believes it cannot reasonably collect the full amount.

Approval is based on:

  • Income and allowable living expenses
  • Assets and available equity
  • Ability to pay now and in the future
  • Compliance with filing and payment requirements

It’s not about how much you owe—it’s about what the IRS believes it can collect.

Example: How an Offer in Compromise Works

Robert owed $126,000 in back taxes after several difficult years in business. Although he was working, his income barely covered basic expenses and he had little usable asset equity.

With professional assistance, Robert submitted a detailed financial analysis showing the IRS was unlikely to collect the full balance. The IRS accepted his Offer in Compromise, allowing him to settle the debt for a fraction of what he owed.

How We Can Help

Offers in Compromise are frequently denied when submitted incorrectly or without proper analysis. Ron Friedman CPA helps by evaluating eligibility, preparing accurate financial disclosures, submitting a strong offer, and communicating with the IRS throughout the process.

If you’re carrying IRS debt and wondering whether a settlement is truly possible, contact Ron Friedman CPA today for a confidential consultation to find out if an Offer in Compromise makes sense for your situation.

I Owe the IRS but Can’t Afford to Pay—What Really Happens Next

July 9, 2026

When someone owes the IRS and can’t afford to pay, the most common response is…doing nothing. Not because they don’t care—but because they’re overwhelmed, scared, or unsure what options exist. Unfortunately, silence doesn’t pause the process. It starts one.

Here’s a plain-English walkthrough of what the Internal Revenue Service typically does when a taxpayer takes no action.

Step 1: The Letters Start (And Slowly Escalate)

The IRS begins with a series of notices explaining the balance due. Early letters are informational and relatively mild. They outline what’s owed, how to pay, and what happens if the balance remains unpaid.

Many taxpayers ignore these notices hoping the issue will resolve itself. It won’t. Each letter moves the account closer to enforced collection—even if months pass between notices.

Step 2: Penalties and Interest Quietly Grow

While nothing seems to be happening, penalties and interest continue to accrue daily. A manageable balance can quietly grow into something far more serious.

This is where many taxpayers lose ground without realizing it. The IRS doesn’t need to act aggressively for the debt to get worse—it grows automatically.

Step 3: The IRS Files a Tax Lien

If the balance remains unpaid, the IRS may file a Notice of Federal Tax Lien. This publicly secures the government’s interest in your property and future assets.

A lien can:

  • Complicate refinancing or selling property
  • Signal that enforcement is escalating

At this stage, the IRS still hasn’t taken your money—but it has positioned itself to do so.

Step 4: Levies and Garnishments Begin

If no action is taken after lien and final notice stages, the IRS may begin levies. This is where things become immediately disruptive.

Levies can include:

  • Freezing and taking funds from bank accounts
  • Garnishing wages
  • Seizing certain assets

Once levies start, financial flexibility shrinks fast—and stopping them becomes harder.

Step 5: The IRS Assumes You’re Choosing Not to Pay

The longer nothing happens, the more the IRS assumes the issue isn’t inability—it’s avoidance. That assumption changes how your case is treated and reduces flexibility.

Ironically, many taxpayers who truly can’t afford to pay qualify for relief—but only if they act before enforcement hardens the IRS’s position.

What Most People Don’t Realize

The IRS actually has options for people who can’t pay—but it rarely offers them proactively. Relief usually requires:

  • Filing required returns
  • Demonstrating financial hardship
  • Requesting protection or structured resolution

Doing nothing guarantees none of that happens.

Final Thought: Inaction Is a Decision—And It’s the Worst One

If you owe the IRS and can’t afford to pay, ignoring the problem doesn’t make it disappear. It simply hands control to the IRS and allows the situation to escalate on its own timeline.

At Ron Friedman CPA, we help taxpayers interrupt this process, understand what the IRS is likely to do next, and take action before enforcement causes real damage.

If you’re overwhelmed by IRS debt and unsure what to do, contact Ron Friedman CPA today for a confidential consultation. Knowing your options early can prevent months—or years—of unnecessary stress.

Business Owner Sentenced for Failing to Pay Employee Payroll Taxes

July 2, 2026

A Jefferson County businessman has been sentenced to 18 months in prison after failing to pay employment taxes for 10 years.

Danny L. Nickelson Jr., owner of General Physiotherapy, was ordered to pay $774,081 in restitution to the IRS, along with a hefty $18,684 fine.

According to prosecutors, Nickelson withheld Social Security, Medicare, and federal income taxes from employees’ paychecks for tax years 2013 through 2022 but failed to send those funds to the IRS. He also failed to pay the employer’s matching share of those taxes.

Prosecutors said Nickelson used the money for business operating expenses and personal spending, including food, travel, retail purchases, and credit card bills.

This case is a serious reminder for business owners: payroll taxes are not optional. When an employer withholds taxes from employees’ wages, that money is considered “trust fund” money held for the government. Using it to cover business expenses or personal bills can lead to severe penalties, IRS collection action, and even criminal prosecution.

If your business has fallen behind on payroll taxes, the worst thing you can do is ignore it. Contact Ron Friedman CPA today for a free consultation. We’ll review your situation, explain your options, and help you create a plan to resolve your tax problem before it gets worse.

Influencer Indicted for Allegedly Underreporting More Than $1.1 Million in Income

June 25, 2026

A social media influencer from Phoenix is facing federal tax charges after prosecutors alleged he failed to report substantial income from his online business.

Charles Lewis Davis, owner of Forever Investments LLC, was indicted by a federal grand jury on two counts of making false statements on his tax returns. According to the indictment, Davis allegedly failed to tell his tax preparer about additional income earned through videos posted on YouTube, Facebook, Instagram, and other platforms.

Prosecutors claim Davis underreported income by:

$807,142 in 2020
$390,566 in 2021

The indictment also alleges the unreported funds were held in personal and business bank accounts, brokerage accounts, and cryptocurrency accounts.

Davis pleaded not guilty at his initial court appearance. If convicted, making a false statement on a tax return carries a maximum penalty of three years in prison and a $250,000 fine.

This case is a reminder that income from social media, side businesses, gig work, investments, and cryptocurrency is still taxable income. Even if funds move through multiple accounts or platforms, the IRS has tools to trace income and compare it against what was reported.

For business owners, influencers, contractors, and self-employed taxpayers, accurate reporting is critical. Relying on a tax preparer does not protect you if important information is withheld or records are incomplete.

If you have unfiled returns, unreported income, IRS notices, or concerns about past tax filings, don’t ignore the problem. Contact Ron Friedman CPA today for a free consultation. We’ll review your situation, explain your options, and help you take the next step toward resolving your tax issue.