- 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

Intro to different retirement accounts

What does it mean to have a 401(k)? IRA?

View Course »

Timing Your Spending

How to pay less by changing when you purchase.

View Course »

TurboTax Articles

Depreciation of Business Assets

In an effort to stimulate the economy by encouraging businesses to buy new assets, Congress approved special depreciation and expensing rules for property acquired in 2014. However, beginning in 2015, we are back to the old depreciation rules.

Tax Deduction Wisdom - Should You Itemize?

Learn whether itemizing your deductions makes sense, or if you should simply take the no-questions-asked standard deduction. The standard deduction is always easier, but for one out of every four taxpayers, itemizing pays off with a lower tax bill. Browse this quick tax deduction overview to avoid paying more taxes than you actually owe.

Tax Breaks and Home Ownership

Home ownership brings with it not only many trips to home improvement stores, but also a slew of tax breaks. It's up to you to take full advantage of the write-offs available to you. Here's what you can and can't deduct.

When to Use Tax Form 1099-C for Cancellation of Debt

In most situations, if you receive a Form 1099-C from a lender after negotiating a debt cancellation with them, you'll have to report the amount on that form to the Internal Revenue Service as taxable income. Certain exceptions do apply.

What is IRS Form 8917?

If you, your spouse or dependents attended post-secondary school, you may be able to deduct a portion of the tuition and fees by reporting it on IRS Form 8717.

Add a Comment

*0 / 3000 Character Maximum