U.S. tax agent accused of trying to cheat the government on his taxes
The Associated Press
Tuesday, March 13, 2007
NEW YORK: A federal tax agent was arrested on charges that he engaged in tax fraud, finding ways for him and others to dodge taxes by claiming that their income was offset by deductions belonging to a company he operated out of his home.
Harry Willner had worked as an Internal Revenue Service agent since 1974 before he was charged in an indictment in U.S. District Court in Manhattan with corrupt interference with the administration of tax laws and willful aiding in the preparation of a false tax return. If convicted, he could face up to three years in prison on each of six counts.
In court papers, federal prosecutors said Willner, 59, engaged in the scheme while working as a revenue agent with the large and mid-size business unit of the IRS in New York.
They said he carried out the fraud by trying to create tax loopholes while purportedly working as an officer at an advertising business, NIA Advertising Inc., whose address was the same as his residence's.
The government said Willner claimed that NIA loaned a company, Royal Magazine Inc., $849,000 (€645,332) from 1998 through 2001 but provided no evidence of a written contract or agreement to verify the debt.
Willner then claimed a "bad debt" reduction on NIA's corporate tax return of more than $758,000 (€576,163), though he could not take advantage of much of it because the income of the business was minimal, the indictment said.
Afterward, Willner tried to get an accountant to help him get other taxpayers to funnel their income through his advertising business so they could take advantage of the large debt, according to the indictment.
Prosecutors said Willner also tried to use the debt as a deduction by having his fee as a teacher at Manhattan private schools paid to the advertising business rather than directly to him, prosecutors said.
Willner was released on his own recognizance after a brief court appearance Monday. His attorney, Robert Baum, declined to comment.
IRS Revenue Agent in Big Time Trouble
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jg
- Fed Chairman of the Quatloosian Reserve
- Posts: 614
- Joined: Wed Feb 25, 2004 1:25 am
Isn't there a general prohibition on IRS agents having other employment or businesses while in the employ of the IRS?
See, for example, http://www.usoge.gov/pages/advisory_opi ... 00x11.html
Perhaps Mr. Willner is a former, and not a current, IRS employee?
See, for example, http://www.usoge.gov/pages/advisory_opi ... 00x11.html
Perhaps Mr. Willner is a former, and not a current, IRS employee?
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Nikki
OUTSIDE EMPLOYMENT AND BUSINESS ACTIVITIES POLICY AND PROCEDURES
for
INTERNAL REVENUE SERVICE EMPLOYEES
Internal Revenue Service employees are allowed to engage in outside employment and business activities, whether performed outside official hours of duty or while in an approved leave status, after obtaining written approval. Consistency with related statutes and regulations is required.
A. The outside activity must conform to general ethical requirements as set forth in the OGE Standards.
B. The outside activity may not conflict with the employee's official duties. Such a conflict exists if:
1. the activity is prohibited by statute or supplemental agency regulation; or
2. it would require the employee's disqualification from matters so central or critical to the performance of his/her official duties that the employee's ability to perform those duties would be materially impaired.
C. The outside activity (unless otherwise permitted) may not deal directly with any tax related matters.
D. The outside activity may not result in the improper use of Government property, including nonpublic official information obtained in connection with the employee's government duties or position.
E. Official duty time may not be used to pursue the outside activity.
F. The outside activity may not impact on the effectiveness of the employee on the job (e.g., working an eight-hour night shift).
G. The employee must not advertise his or her employment with the Service to
generate business.
H. If the outside activity is prohibited, the employee may not do it indirectly, that is in the name of, or through family members.
IV. OUTSIDE ACTIVITIES NOT REQUIRING PRIOR APPROVAL
Permission is not required to engage in outside activities that are not considered employment or business. The following are examples of activities that do not require prior approval:
A. Membership and services (including holding of office) in civic, scout, religious, educational, fraternal, social, community, veteran and charitable organizations, including corporations, where such office or services do not entail the management of a business type activity such as the direct operation of a commercial type clubhouse.
B. Services as a Notary Public.
C. Minor services and odd jobs for friends, relatives, or neighbors.
D. Furnishing advice and assistance in the preparation of tax returns where no fee or other consideration is accepted.
3
E. Unpaid bookkeeping, preparation of tax returns and other forms required by the Service, and the maintenance of other records for civic, religious, educational, and charitable non-profit organizations that are exempt from Federal income tax.
for
INTERNAL REVENUE SERVICE EMPLOYEES
Internal Revenue Service employees are allowed to engage in outside employment and business activities, whether performed outside official hours of duty or while in an approved leave status, after obtaining written approval. Consistency with related statutes and regulations is required.
A. The outside activity must conform to general ethical requirements as set forth in the OGE Standards.
B. The outside activity may not conflict with the employee's official duties. Such a conflict exists if:
1. the activity is prohibited by statute or supplemental agency regulation; or
2. it would require the employee's disqualification from matters so central or critical to the performance of his/her official duties that the employee's ability to perform those duties would be materially impaired.
C. The outside activity (unless otherwise permitted) may not deal directly with any tax related matters.
D. The outside activity may not result in the improper use of Government property, including nonpublic official information obtained in connection with the employee's government duties or position.
E. Official duty time may not be used to pursue the outside activity.
F. The outside activity may not impact on the effectiveness of the employee on the job (e.g., working an eight-hour night shift).
G. The employee must not advertise his or her employment with the Service to
generate business.
H. If the outside activity is prohibited, the employee may not do it indirectly, that is in the name of, or through family members.
IV. OUTSIDE ACTIVITIES NOT REQUIRING PRIOR APPROVAL
Permission is not required to engage in outside activities that are not considered employment or business. The following are examples of activities that do not require prior approval:
A. Membership and services (including holding of office) in civic, scout, religious, educational, fraternal, social, community, veteran and charitable organizations, including corporations, where such office or services do not entail the management of a business type activity such as the direct operation of a commercial type clubhouse.
B. Services as a Notary Public.
C. Minor services and odd jobs for friends, relatives, or neighbors.
D. Furnishing advice and assistance in the preparation of tax returns where no fee or other consideration is accepted.
3
E. Unpaid bookkeeping, preparation of tax returns and other forms required by the Service, and the maintenance of other records for civic, religious, educational, and charitable non-profit organizations that are exempt from Federal income tax.
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jg
- Fed Chairman of the Quatloosian Reserve
- Posts: 614
- Joined: Wed Feb 25, 2004 1:25 am