tax-fraud

United States v Woods No. 12-562 – Texas Gold may be found in taxes. At least, that’s what the IRS could claim. A Texas Billionaire and his business partner are now arguing the case that the IRS has set against them; allegedly they used a tax shelter to shield them from unpaid taxes.

Billy Joe Combs and Gary Woods started their partnership fourteen years ago. They opened their tax shelter referred to as COBRA, or “Current Options Bring Reward Alternatives.” Allegedly they generated losses in order to counteract a financial windfall that McCombs was expecting. Audits were performed, and the business partners were taken to district court to argue their sham. They may have been exposed, but the court still ruled against the IRS trying to claim a 40% penalty. The Supreme Court is now in the hot-seat; as they listen to oral arguments over whether COBRA was in fact a shield for Woods to avoid tax evasion. The truth of the tax shelters was already exposed as a sham by lower courts; however it was a partnership involved which means Billy Combs and Gary Woods would not be individually held accountable as a tax penalty can only apply to the partnership involved, and not to individual partners. IRS Lawyers argue that if the tax returns on the partnership were consistent with individual tax returns, the state tax penalty should be able to be applied; and this could affect hundreds of millions for penalties against other tax shelters as well.

The Justices of Texas hardly see tax fraud accusations, unlike Southern California and seasoned Lawyers of Vincent W Davis & Associates, so they could tell you that an IRS tax lien or state tax lien is the first major step that the IRS and/or state will take against a taxpayer in order to collect back taxes from an individual. Besides becoming a major strike against your tax record and your credit report, a tax lien acts as an insurance policy to ensure the tax liability is not overlooked if other creditors should file suit and attempt to collect from you, a bankruptcy is filed, or the taxpayer attempts to sell their real estate, buy other real estate, or even apply for credit.

If you have back taxes, that means you should already be checking your options of Installment Agreement Program where you’ll pay back in monthly installments, or an Offer in Compromise where you will provide a smaller fee that has been settled upon. Let the tax resolution lawyers of Vincent W Davis & Associates answer your call today.

If you have any questions or would like to schedule a Free Consultation, please feel free to call us at 626-446-6442 or visit us at www.taxresolutionlawyers.com, where you will also find additional information, testimonials, and success stories.

Comments are closed.

Contact The Law Office Of Vincent W. Davis

First
Last
Email

Experienced Law Firm

Office Locations Where Can We Meet You?

Arcadia Office
150 N. Santa Anita Ave,
Suite 200
Arcadia, CA 91006
Phone: (626) 446-6442 Fax: (626)-446-6454
Get Directions
Beverly Hills Office
*Virtual Office
9465 Wilshire Blvd.
Suite 300
Beverly Hills, CA 90212
Phone: (310)-880-5733 Get Directions
La Mirada Office
*Virtual Office
Cerritos Towne Center
17777 Center Court Drive ,
Suite 600
Cerritos, California, 90703
Phone: 888-888-6542 Get Directions
Los Angeles Office
*Virtual Office
Gas Comdivany Tower
555 West Fifth Street,
31st Floor
Los Angeles, California, 90013
Phone: (213)-400-4132 Get Directions
Long Beach Office
*Virtual Office
Landmark Square
111 West Ocean Blvd.,
Suite 400
Long beach, California, 90802
Get Directions
Irvine Office
*Virtual Office
Oracle Tower
17901 Von Karman Avenue,
Suite 600
Irvine, California, 92614
Phone: (949)-203-3971 Fax: (949)-203-3972 Get Directions
Ontario Office
*Virtual Office
Lakeshore Center
3281 E. Guasti Road,
7th Floor
City of Ontario, California, 91761
Phone: (909)-996-5644 Get Directions
Riverside Office
*Virtual Office
Turner Riverwalk
11801 divierce Street,
Suite 200
Riverside, California, 92505
Phone: (909)-996-5644 Get Directions
San Diego
*Virtual Office
Emerald divlaza
402 West Broadway,
Suite #400
San Diego, California, 92101
Phone: (619)-885-2070 Get Directions
Aliso Viejo
*Virtual Office
Ladera Cordivorate Terrace
999 Cordivorate Drive,
Suite 100
Ladera Ranch, California, 92694
Phone: (714) 721-3822 Get Directions