IRS Audit: Family Court Reporters, Forensic CPAs, Special Masters, Clerks, Lawyers & Judges Could Be Charged With Fraud or Tax Evasion by Cheating Uncle Sam
QUESTION: What do Al Capone and Family Court Judges, Lawyers and Court Reporters Have in Common?
ANSWER: Maybe a great deal where the IRS is concerned.
See California's Top 500 Delinquent Tax Payers - How many caused by family courts?
Public outrage over escalating fees and costs in family law cases, coupled with judges and lawyers singing joyfully about those fees last December, may be contributing to an increase in complaints against individuals who work in the county's family courts, where many earn huge salaries and kickbacks while others have to go on strike just to make a living wage.
The California Board of Accountancy just tightened laws related to CPAs , who often engage in misconduct in family divorce and probate cases.
A privileged few in the family court arena now make in excess of $10,000,000 a year, with court reporters, in some counties making as much as $500,000 a year, where most of the income is not reported to the IRS.
Insiders and whistleblowers are beginning to point to just how the family law community has managed to allow some to enrich themselves from community property and child support, while others are left with huge tax burdens that can leave them crippled for life.
Since 2012 California's Court Reporters Board has known that court reporters appear to be at the center of family law fraud and tax evasion issues. The Board's website even warns reporters they could lose their licenses for playing fast and loose with Uncle Sam. Yet, little has been done to correct the problem and some individual transcriptionists manage to walk away with not only hefty family court reporting fees, paid by the county, but as much as $5,000 more a week, taken from law firms they offer "preferred service " , or from pro per litigants , whom they demand pay in cash or money orders , too hard to trace to the IRS.
Frustrated that complaints to the Commission on Judicial Performance and the State Bar have failed to address the judicial and attorney misconduct that serves to financially break so many Californians, many are turning in the people who surround the judges and lawyers , and filing complaints with the IRS, where Whistleblower awards can be as high as 15-30%,.
A Santa Clara County CPA, whom wished to remain anonymous, had this to say:
"These family court judges and lawyers are bleeding our clients by stringing out divorce and probate cases for 5-10 years. Year after year we must deal with trying to decide what is community and what is separate property for tax reporting purposes. At the same time our clients in law firms are clueless about their taxes. Many family lawyers charge off expenses they shouldn't or conceal cash payments paid to experts they don't want in their case records. Attorneys also fail to report cash they pay a crony family court network, including court transcriptionists, who often double dip with private and county court money, most of which is not reported on their personal tax returns, as required by law.
Forensic accountants, CPAs, are making 10 times what couples pay their regular accountants and for what many consider to be sloppy work. Once these specialty CPAs are court appointed, they are entitled to immunity , which allows them to play fast and lose for the party hiding the money.
Divorces used to be sad and tough for a year or two , costing the middle class couple $30,000 dollars or so. Today we are seeing the same middle class divorces spending millions on lawyers with a parade of experts who seem less competent than their non- court counterparts.
California real properties and businesses appear to be fuelling the divorce wars where a select few walk away with it all, and the people they are supposedly working for are left with nothing but the tax bill from the IRS for money they never got. It really makes one wonder what the judges are doing in these courts. It really is pure evil and not sustainable. "
IRS Whistleblower complaints may change some of the battle. If you have financial information on a law firm, lawyer, custody expert , realtor, CPA, court transcriptionist , bailiff , of even judge that you can't get addressed through other complaints, contact us for help at: CalJohnQPublic@gmail.com, or use the IRS form to start here.