Tag: tax stories

Yet Another ‘Real Housewives’ Star in Tax Trouble

Anyone can find themselves in tax trouble, even ‘Real Housewives of Orange County’ star Kelly Dodd who owes more than $23,000 to IRS.

One of the stars of the Bravo reality TV series Real Housewives of Orange County is in debt to the IRS.

Kelly Dodd and her ex-husband Michael Dodd owe $23,386.62 for unpaid taxes for the years 2015 and 2016, according to documents obtained by The Blast.

Tax Trouble Can Happen To Anyone

Kelly and Michael Dodd were married for 11 years, until their divorce in 2018.

Dodd joined the cast of Real Housewives of Orange County during the show’s 11th season.

“Her fiery Latin lineage and unfiltered opinions have been bringing the heat ever since she joined the cast,” Bravo’s website says.

Dodd is not the first cast member from the Real Housewives series to get in tax trouble. In the last year, four other cast members have faced IRS liens.

Feature image by Jp Valery on Unsplash

Businessman Evaded IRS Assessments, Leading to $1.5 Million Loss

According to court records, a Pittsburgh businessman evaded IRS assessments, leading to his conviction of guilt for tax evasion. Learn more.

He evaded IRS assessments by telling his company’s bookkeeper to stop issuing checks and to have his company pay his personal expenses.

This Pennsylvania businessman pleaded guilty in federal court to tax evasion.

According to court records, Robert Rionda Jr., of Pittsburgh, Penn., owned and operated Arms Insurance Group from 2002 through May 2014. In October 2011, the IRS opened a case on Rionda for unpaid income taxes for the 2009, 2010 and 2011 tax years. In May 2012, the IRS’s attempts to obtain payments from Rionda were unsuccessful, and the IRS levied his personal bank accounts.

Evading IRS Assessments

IRS assessments

Photo by Aidan Bartos on Unsplash

Rionda responded to IRS levies by directing the company’s bookkeeper to stop issuing salary checks to Rionda and his wife and pay all of his personal bills from the company’s bank accounts rather than from his personal bank accounts.

Over the next several years, Rionda continued to file apparently accurate corporate returns on behalf of Arms Insurance Group, as well as personal income tax returns, but he made only minimal payments to the IRS for the personal income taxes he owed.

Don't Hide from IRS Assessments

Photo by Matthew Ansley on Unsplash

During the years 2009 to 2014, Rionda received distributions from the company each year which varied from approximately $376,000 to $1.6 million. He sold the company to his son in 2014 but continued to receive distributions through 2016.

The total tax loss, including assessed interest and penalties, is more than $1.5 million. Rionda faces up to five years in prison and a fine of up to $250,000.

© 2019

Featured image by Hunters Race on Unsplash

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Diesel Engine Company Executive Sentenced To Prison in Tax Case

In this recent tax case, an executive failed to pay taxes to the IRS and created false records, ultimately sinking his company.

He failed to pay taxes to the IRS and created false records, ultimately sinking his company.

A Nebraska businessman was sentenced to one year and one day in prison for failing to pay federal taxes.

Delving Deeper

Rolley D. Bennett Jr., 53, of Omaha, Nebraska, was also ordered to pay $31,576.19 in restitution.

Bennett was the controller of the Diesel Power Equipment Company, headquartered in Omaha. During the period of 2013 and 2014, he failed to pay approximately $879,000 in payroll trust fund taxes to the IRS.

tax case

Photo by Hunters Race on Unsplash

The Business

Diesel Power distributed and repaired diesel engines, generators, pumps, parts, and accessories, primarily to the mining, railroad, industrial equipment, and agricultural irrigation industries.

Bennett’s failure to make the payroll tax payments resulted in Diesel Power ultimately going out of business.

Bennett took steps to conceal the nonpayment of Diesel Power’s employment taxes, including creating cash flow reports that reported the employment tax liabilities had been paid and creating journal entries in the company’s general ledger, which accrued the employment tax liabilities and their associated payments.

tax case

Photo by Wesley Tingey on Unsplash

This Tax Case Verdict

“Failure to remit those employment taxes resulted in the loss of tax revenue to the government and the possible loss of future Social Security or Medicare benefits for the employees,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation.

©2019

Featured image by Larry Farr on Unsplash

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