- Days left
Today's tax tip is simple: If you owe the IRS money and an agent comes knocking at your door, there are a number of ways to handle the matter. Offering the agent free pizza and cash in exchange for reducing your tax liability? Probably not the best approach.

Ramesh G. Khilnani, 51, a Houston-area resident and a native of India, offered an IRS agent free pizza and "work" after he was told he owed $49,000 in back taxes for the years 2004-2007 as the result of an audit.

WebCPA reports that after the auditor reported the incident to her supervisor, "Agents from the Treasury Inspector General for Tax Administration arranged for the recording of subsequent meetings – via telephone and in person -- between the agent and Khilnani. During the course of these contacts, Khilnani offered the agent $2,500 and delivered $2,000 in exchange for having his tax liability reduced from $49,000 to around $500. In addition to financial compensation, Khilnani repeatedly offered the agent pizza from his restaurant as part of the deal."

Khilnani pled guilty to bribery charges and was sentenced to two years in federal prison and could face deportation once he is released.

Taxes in the News

    WASHINGTON - MAY 28: Dan Danner (L), Independent Business President and Chief Executive Officer, and Ron Williams (C), Aetna Inc. Chairman and Chief Executive Officer look over their papers while Ron Pollack (R), Families USA Executive Director speaks during a press conference at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Federation of Dan Danner, Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Pollack;Ron Williams;Dan Danner

    Getty Images

    WASHINGTON - MAY 28: Ron Pollack, Families USA Executive Director speaks during a press conference at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Pollack

    Getty Images

    WASHINGTON - MAY 28: Ron Williams (L), Aetna Inc. Chairman and Chief Executive Officer and Ron Pollack (R), Families USA Executive Director listen to Dan Danner (C), Federation of Independent Business President and Chief Executive Officer speak during a press conference at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Dan Danner;Ron Pollack;Ron Williams

    Getty Images

    WASHINGTON - MAY 28: Dan Danner (L), Federation of Independent Business President and Chief Executive Officer and Ron Pollack, Families USA Executive Director, listen to Ron Williams, Aetna Inc. Chairman and Chief Executive Officer speak at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Williams;Ron Pollack;Dan Danner

    Getty Images

    WASHINGTON - MAY 28: Ron Williams, Aetna Inc. Chairman and Chief Executive Officer listens during a press conference at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Williams

    Getty Images

    WASHINGTON - MAY 28: Dan Danner (L), Federation of Independent Business President and Chief Executive Officer and Ron Pollack, Families USA Executive Director, listen to Ron Williams, Aetna Inc. Chairman and Chief Executive Officer speak at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Williams;Ron Pollack;Dan Danner

    Getty Images

    WASHINGTON - MAY 28: Dan Danner (L), Federation of Independent Business President and Chief Executive Officer listens to Ron Pollack (R), Families USA Executive Director speak at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Pollack;Dan Danner

    Getty Images

    WASHINGTON - MAY 28: Dan Danner, Federation of Independent Business President and Chief Executive Officer listens during a press conference at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Dan Danner

    Getty Images

    WASHINGTON - MAY 28: Ron Williams, Aetna Inc. Chairman and Chief Executive Officer waits to speak at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Williams

    Getty Images

    WASHINGTON - MAY 28: Ron Williams, Aetna Inc. Chairman and Chief Executive Officer speaks at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Williams

    Getty Images


Increase your money and finance knowledge from home

Introduction to Preferred Shares

Learn the difference between preferred and common shares.

View Course »

How to Buy a Car

How to get the best deal and buy a car with confidence.

View Course »

TurboTax Articles

Tax Tips for the Blind

Anyone whose field of vision falls at or below 20 degrees, who wears corrective glasses but whose vision is 20/200 or less in his best eye, or who has no eyesight at all, meets the legal definition of being blind and is eligible for certain tax deductions.

What is Form 4255: Recapture of Investment Credit?

When is a tax credit not a tax credit? When the IRS takes it back. If you're in the situation where you have to file IRS Form 4255, you might have to pay back a tax credit you've earned in prior years. This process, known as recapture, occurs if you claim a credit -- in this case, a credit for a specific type of business investment -- and then no longer qualify for that credit.

The Most Important Tax Forms for ALEs (Applicable Large Employers)

In 2015, some parts of the Affordable Care Act specifically apply to businesses, in particular, large employers. The Employer Shared Responsibility provisions affect companies with 50 or more full-time employees or an equivalent of part-time or seasonal workers. These companies are called Applicable Large Employers, or ALEs. 2015 is considered a transition year as everyone gets used to the new normal for workplace health plans.

Employer Sponsored Health Coverage Explained

The Affordable Care Act, also known as Obamacare, is simpler than some people may give it credit for. The basic rule to remember is that everyone must carry Minimum Essential Coverage (MEC) or pay a penalty. Employers with 50 full-time employees or more are obligated to sponsor plans for their workers to help them meet this requirement.

How to Report RSUs or Stock Grants on Your Tax Return

Restricted stock units (RSUs) and stock grants are often used by companies to reward their employees with an investment in the company rather than with cash. As the name implies, RSUs have rules as to when they can be sold. Stock grants often carry restrictions as well. How your stock grant is delivered to you, and whether or not it is vested, are the key factors when determining tax treatment.

Add a Comment

*0 / 3000 Character Maximum