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American Express To Pay $230M For Misleading Small Business Customers American Express To Pay $230M For Misleading Small Business Customers
American Express To Pay $230M For Misleading Small Business Customers American Express said it will pay $230 million to resolve federal investigations into deceptive sales tactics and recordkeeping violations involving small business credit card and wire transfer products. The credit card company agreed to pay a $108.7 million civil penalty, the Department of Justice said in a news release on Thursday, Jan. 16. The settlement resolved claims against American Express of deceptive marketing and "dummy" account information. American Express was accused of engaging in unlawful sales tactics and falsifying records between 2014 and 2021. "When financial companies …

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by Chris Spiker
News
2025 Tax Season Begins: What You Need To Know About Expanded Options, New Tools 2025 Tax Season Begins: What You Need To Know About Expanded Options, New Tools
2025 Tax Season Begins: What You Need To Know About Expanded Options, New Tools Early filers, get ready. The 2025 tax season is here! The IRS will start accepting and processing tax returns on Monday, Jan. 27, the agency said in a news release. IRS Free File also became available on Friday, Jan. 10 to taxpayers who qualify through private-sector partners. With more than 140 million tax returns expected, the IRS urged taxpayers to take advantage of updated online resources and consider using trusted tax preparers to avoid scams. "This has been a historic period of improvement for the IRS, and people will see additional tools and features to help them with filing their …

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by Chris Spiker
News
IRS Sending Special Payments To 1 Million Americans: Here's What To Know IRS Sending Special Payments To 1 Million Americans: Here's What To Know
IRS Sending Special Payments To 1 Million Americans: Here's What To Know The Internal Revenue Service (IRS) announced it will issue automatic payments this month to nearly one million taxpayers who didn’t claim the Recovery Rebate Credit on their 2021 tax returns.  These payments aim to assist eligible individuals who missed claiming the credit, which provides up to $1,400 per person for those who didn’t receive the full amount of their Economic Impact Payments (EIPs). Who Will Receive Payments? Eligible taxpayers include those who filed a 2021 tax return but either left the Recovery Rebate Credit field blank or entered $0 despite qualifying. Payments wil…

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by Joe Lombardi
News
Holiday Deals Or Fraud? IRS Issues Warning For These Scams Holiday Deals Or Fraud? IRS Issues Warning For These Scams
Holiday Deals Or Fraud? IRS Issues Warning For These Scams As the holiday shopping season begins, the IRS reminds everyone that it’s not just your credit card balance you need to watch — it’s also your personal information. As part of its ninth annual National Tax Security Awareness Week, the IRS is warning taxpayers about a rise in holiday scams.  The scammers aren’t interested in gifts under your tree; they’re after your Social Security number and financial information instead. Here’s how scammers are getting creative—and how you can stay safe: Phishing Emails: Be wary of emails pretending to be from reputable retailers, shipping companie…

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by Joe Lombardi
News
$2M Scheme: Westchester Accounting Firm Partners Admit To Tax Fraud Conspiracy $2M Scheme: Westchester Accounting Firm Partners Admit To Tax Fraud Conspiracy
$2M Scheme: Westchester Accounting Firm Partners Admit To Tax Fraud Conspiracy Two New York accounting firm partners have pleaded guilty to a multi-million dollar tax evasion scheme.  Click here for a new, updated story - Update: Scarsdale-Based Accountant Nabbed In Tax Fraud Scheme Was Longtime Firefighter Westchester County resident George Sanossian, age 70, of Scarsdale, and New Jersey resident Jack Sardis, age 66, of Englewood Cliffs, both certified public accountants, admitted to conspiracy to defraud the IRS by scheming with clients to reduce tax liabilities through a shell company, leading to over $2 million in unreported cash transactions.  The tw…

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by Joe Lombardi
News
NY Businesswoman Convicted Of Obstructing IRS, Filing False Tax Returns NY Businesswoman Convicted Of Obstructing IRS, Filing False Tax Returns
NY Businesswoman Convicted Of Obstructing IRS, Filing False Tax Returns A New York businesswoman is facing federal prison time after being convicted of obstructing the IRS and filing false tax returns. Long Island resident Lorraine Pilitz, age 64, of Merrick, was found guilty on all five counts against her by a federal jury in Central Islip Wednesday, Nov. 9, following a two-week trial. Federal prosecutors said between 2011 and 2013, Pilitz, who owned several automotive businesses on Long Island, regularly structured cash deposits in a way that allowed her to avoid filing financial reports that are required for all transactions over $10,000. The scheme resulte…

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by Michael Mashburn
News
Ex-Owner Of NY Commercial Check Cashing Companies Sentenced For $9.5M Fraud Scheme Ex-Owner Of NY Commercial Check Cashing Companies Sentenced For $9.5M Fraud Scheme
Ex-Owner Of NY Commercial Check Cashing Companies Sentenced For $9.5M Fraud Scheme The former owner of several check cashing businesses in New York is heading to federal prison after admitting to a multimillion-dollar fraud scheme. Long Island resident John Drago, age 58, of Central Islip, was sentenced to four years behind bars Friday, Oct. 21, in federal court in Central Islip. It followed his September 2021 guilty plea to fraud charges, in which he admitted to illegally structuring financial transactions and evading payroll taxes at several of his Long Island businesses. Federal prosecutors said between January 2010 and October 2013, Drago told employees to cash multi…

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by Michael Mashburn
News
Ex-Hudson Valley Bagel Shop Owner Sentenced For $2M Scam Ex-Hudson Valley Bagel Shop Owner Sentenced For $2M Scam
Ex-Hudson Valley Bagel Shop Owner Sentenced For $2M Scam A former Hudson Valley resident is heading to federal prison for defrauding prospective franchisees of his bagel company. Joseph Smith, age 57, formerly of Fishkill in Dutchess County, was sentenced to three and a half years behind bars after pleading guilty in February 2022 to charges of conspiracy to commit wire fraud and tax evasion. Federal prosecutors said between 2014 and 2016, Smith sold more than 160 franchises of his company, New York Bagel Enterprises Inc., to individuals in Pennsylvania and other states. The problem, prosecutors said, was that Smith misled operators by guarantee…

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by Michael Mashburn
News
Doctor From Capital District Admits To Filing False Tax Returns Doctor From Capital District Admits To Filing False Tax Returns
Doctor From Capital District Admits To Filing False Tax Returns A doctor from the Capital District is facing prison time after admitting to filing false tax returns, the US Attorney’s Office said. Ehab Kodsi, age 56, of Watervliet, pleaded guilty to the charge Wednesday, May 4, in Albany federal court. Prosecutors said between 2015 and 2018, Kodsi underreported revenue from both his pain management clinic in Queensbury, in Warren County, and his real estate company. He was also accused of improperly deducting personal and business expenses. “Kodsi did not report income received from third parties reimbursing services provided by his pain management cl…

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by Michael Mashburn
Business
IRS May Charge Penalty If You're In One of These Categories, Report Says IRS May Charge Penalty If You're In One of These Categories, Report Says
IRS May Charge Penalty If You're In One of These Categories, Report Says Some Americans may find unexpected items in their mailbox as the IRS levies certain tax penalties against them if they find themselves in one of several categories, according to a new report. According to fool.com, individual taxpayers, business owners, and those who entrust their finances to others could face potential penalties for these infractions: Individual Taxpayers Failure to file: A penalty is levied for those who fail to file their taxes each year; Failure to pay: Those who owe the IRS money after filing and fail to pay may also be financially dinged; Inaccurate return: Those w…

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by Zak Failla