Issue link: http://viewer.e-digitaledition.com/i/869720
THE INTERNAL RE VENUE SERVICE ¡IRS¢, ALONG WITH THE U.S. DEPARTMENT OF JUSTICE, HA S L AUNCHED A MA SSIVE EFFORT TO IDENTIF Y AND PROSECUTE TA X E VADERS FROM THE MEDICAL PROFESSION. A MA JOR EMPHA SIS IS TO INITIATE CRIMINAL INVESTIGATIONS AND PERFORM AUDITS OF THOUSANDS OF HE ALTHCARE PROVIDERS, FOCUSING ON ISSUES SUCH A S TA X SHELTER SCHEMES, CONCE ALMENT OF INCOME AND E XCESSIVE DEDUCTIONS. BY CHRISTOPHER DAVIS, CPA, AND JIM RICE, CPA 1 4A C C O U N T I N G THE IRS AND the Justice Department released the following as real-life examples to illustrate some of their focus: + A Cleveland physician had concealed income in a sham corpora- tion and reported income on the returns of other taxpayers. He was sentenced to two years and ordered to pay back $330,000. + A physician in Missoula, Montana, was sentenced to 18 months in prison for attempting to conceal income and assets by placing them into a sham corporation. + A California ear, nose and throat specialist was convicted along with two other doctors in a scheme to funnel income to o•shore trusts in an attempt to avoid taxation. The doctors were advised by a Utah trust promoter. + A physician in Michigan was sentenced to 15 months in prison for depositing medical practice revenue into his personal credit card account and a personal investment account while failing to notify his accountant about the unreported income. The promotion of tax shelter schemes and sham trusts lacking any real economic substance has risen in popularity. Physicians The IRS and Physicians 1 4