INFORMATION DEPARTMENT VOLUME 11, NUMBER 2
Tax Tidbits IRS Agent Stole Identity, Forged Papers, Wire Fraud, Feds Claim Imagine opening your door to an IRS Agent flashing a badge from the Criminal Investigation Division of the IRS. Now imagine that the IRS Agent turns out to be a crook. If it sounds far-fetched, read the indictment of Bryan Cho who was arrested and charged with a whole bundle of serious crimes. If he is convicted, the charges could land him in the slammer for up to 20 years. The 10-count indictment of the IRS agent was unsealed in federal court in Brooklyn. It charges Bryan Cho, aka “Yong Hee Cho,” with possession of a fake foreign passport, aggravated identity theft, making false statements during a background check, and wire fraud in connection with the purchase of a New York apartment. Apart from being accused of identity theft and wire fraud, the feds allege that he used forged documents to buy the NY co-op. Cho started as an IRS agent in 2008. But by 2021, the feds say he has a fake foreign passport and that he submitted multiple false documents in connection with the purchase of a NY apartment. The indictment charges that Cho used forged tax returns and bank statements to inflate his income and assets so the co-op board would approve him for the building. Prosecutors claim that he funneled hundreds of thousands of dollars from a foreign bank account for an entity he created using false identity documents. In a job-related background investigation, the government claims that he denied possessing any foreign identification documents. Talk about on the job training. To view the full text of the article, please click here.	Top Stories of February 2021 TAX PLANNING Why Understanding IRS Form 1099 is Key for Lawyers and Clients In most cases, Forms 1099 report income, so if you receive a Form 1099 in the mail, open it and check the numbers. You may not be able to change it, but you’ll usually need to report it on your tax return. Errors in reporting do occur, of course, so if you believe a Form 1099 is wrong, you may be able to get the issuer to correct or undo it. But that is usually tough unless it is truly an error. Your IRS Form 1099 Is Late, But Do You Really Need It For Your Taxes? IRS Forms 1099 are important, tipping off the IRS and your state how much you were paid for the year. But do you really want or need all those forms? TAXING EXPATRIATIONS Renouncing American Citizenship Hits All-Time Record Treasury Department records show that 2020 set a new record for the number of Americans who renounced their U.S. citizenship or gave up their long-term green cards. TAXING SETTLEMENTS Does IRS Tax Legal Malpractice Settlements? Legal malpractice claims arise out of accident and medical malpractice cases, wills and trusts, divorce, litigation, tax advice, real estate deals, and many other types of legal matters. Whatever the circumstance, when a legal malpractice case settles, there are bound to be tax issues. Is the recovery taxable? You’re Asked For An IRS Form W-9, What Should You Say? Before paying you, many companies will ask for an IRS Form W-9 so they can issue you an IRS Form 1099. A Form W-9 verifies your taxpayer ID number, typically your Social Security Number, or if you are a company, your employer identification number. If you want to be paid, refusing to hand over a W-9 may not make sense. Legal Malpractice Settlement Tax Worries Every plaintiff thinks about taxes. Most defendants do too, although they worry far less about them than most plaintiffs do. Ideally, plaintiffs hope to pay no taxes on their recoveries. At most, many plaintiffs are (grudgingly) willing to pay taxes on their net recoveries, after legal fees and costs. However, no plaintiff is willing to pay taxes on their gross recovery. TAX PLANNING Win $1 Billion Mega Millions Lottery Jackpot, Pay Mega Taxes The Mega Millions jackpot rose to a cool $1 billion recently, according to officials. Winning would be great, but taxes are big too. Lottery winnings are taxed, with the IRS taking taxes of up to 37%.
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