Tim’s Tax News on the Tenth – October 2024

On September 13, 2024, Adam R. Oliva (“Oliva”), a tax professional from Rolling Meadows, Illinois, pleaded guilty to defrauding his clients out of over $1.1 million.

From 2015 to 2020, Oliva misrepresented that the funds his clients provided would be used to satisfy their tax liabilities with the IRS and state authorities. Instead, Oliva misappropriated the funds for personal uses such as gambling and retail purchases, while filing false tax returns that understated his clients’ tax liabilities. This strategy minimized the risk of the IRS contacting his clients about their unpaid taxes, allowing the scheme to continue undetected for years. Oliva faces serious criminal penalties, including up to 20 years in prison for wire fraud and three years for preparing false tax returns.

The implications for Oliva’s clients are significant. Despite being victims of fraud, they are still liable for the taxes owed, along with accrued interest, and potential penalties. Under the Internal Revenue Code (“IRC”), the obligation to ensure taxes are paid correctly remains with the taxpayer, even if a taxpayer is a victim of fraud. The case of Adam R. Oliva serves as a stark reminder that taxpayers must exercise due diligence when selecting a tax professional. It is crucial to verify that payments made for taxes are received by the IRS or state revenue authorities. Taxpayers should regularly check their tax accounts, request confirmation of payments, and ensure all filings reflect accurate and timely payments. Even if a taxpayer entrusts a professional with their financial matters, they remain ultimately responsible for their tax liabilities.

If you would like more details, please do not hesitate to call our office. Our office has been successful in helping taxpayers with IRS and IDOR collection problems for over 30 years. If you have a tax or debt problem, please contact me at 847-705-9698 or thughes@lavellelaw.com and find out how we can help you.

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