Hawaii Man Found Guilty of Filling Extravagant Trips as “Viable” Tax Deductions
Filing taxes alone is a daunting task for those who own a business, invest large sums of money, or are strict in their process of itemizing each and every expense for the previous year. It is no wonder why the window for filing taxes is open for months in order for citizens to gather required documentation, receipts, and anything else that identifies money spent or earned for the year being filed. Tax lawyers in Hawaii understand how meticulous the IRS is when skimming through returns to be sure all are filed properly, which is why individuals have the time span they do to retrieve everything they need to properly file their taxes.
One aspect that pays a large role in how much a person must pay in, or even receive back when filing their taxes are the deductions. A deduction is something that can be used to lower your amount of taxable income, hence there is less tax liability on your part. Some possible options that can be used as a form of a deduction when filing your taxes includes:
- A charitable contribution
- Interest paid on certain investments
- Job-related expenses
- Property taxes
Taxes as a whole is a complicated topic, and sometimes individuals become a bit uneasy when determining how much they are required to pay back due to their taxable income. This sometimes results in false reports of deductions of expenses you never actually paid, or over emphasizing the amounts paid out. If caught doing so, there is a hefty fine and/or jail time one can be expecting, therefore, it is advisable to obtain advice or hire a tax attorney the minute you are recognized for falsely notifying the IRS of these faulty deductions.
Forbes recognized a man back in 2015 who was convicted of tax fraud, where rather than reporting the actual amount spent on business expenses, he cloaked his luxuries as if they were necessities required to operate his business. Albert S.N. Hee, who was a resident of Kailua, Hawaii, went as far as even reporting $96,000 spent on massages. After the 11-day tax fraud trial, he was found guilty of filing false income tax returns dated back to 2007 through 2012, while also obstructed the IRS beginning in 2002.
As the owner of the company Waimana Enterprises Inc., he “falsely deducted the payments from his corporate tax returns as if they were legitimate business expenses,” which totaled up to the amount of $4 million dollars. Hee used his personal credit card, which was covered by the company, for family trips, and went as far as having a family vacation at a resort written off as he noted it was a “stockholder’s meeting.” Hopefully Mr. Hee had a reputable Hawaii tax legal lawyer representing him with these immense charges he was facing.
If you have fallen victim to allegations and harassing phone calls from IRS agents who are claiming you have provided a false tax return, do not stand for it any longer. You can conveniently connect with one of our trustworthy tax legal representatives in Hawaii who can remove the burden of speaking with the IRS and be your voice in the matter.