By Fraud Expert, Ed Martin
Examining Book & Witnesses by IRS
With the increase in the use of automated accounting systems and tax preparation software such as Quicken, QuickBooks, MS Money, and other prominent software, including TurboTax, Tax Cut, Tax Works, etc., IRS is stepping up its scrutiny of the contents of electronic data. [Read more...]
by Ed Martin, CFE, Tax Fraud Expert
The Internal Revenue Service sets the bar high for individuals to meet the Innocent Spouse guidelines.
Important: Form 8857 Summary of Instructions:
The IRS says must complete your paper work, Form 8857, attachments, and exhibits “as soon as you become aware of a tax liability for which you believe only your spouse should be held responsible.” You must be brave in this process because the IRS will contact your spouse and inform him/her of the filing to allow him/her to participate and will advise him/her of their determination. [Read more...]
by Fraud Expert, Ed Martin
With continuous construction in Austin, Texas you may be hired to investigate the misappropriation of construction funds by their contractor. The investigator will ask himself / herself, where do I start? The following will act as a checklist of things to do if faced with this type of investigation.
Meet with the Client:
Remember to take care of yourself by securing a signed contract with the client defining the scope of your investigation and secure a retainer. Thoroughly interview the client and any secretary or bookkeeper about what they suspect and why. [Read more...]
by Jason Slick, President, Cynic Inc.
In today’s global economy the importance of data organization and classification has become the cornerstone on which a financial investigation relies.Everything from converting to digital data to searching information for classification has become an arduous task as fraud cases have become more and more complicated. To address this increase in data complexity, a few standardizations of technique and technology can make a huge difference in the number of hours needed to take a fraud investigation from start to finish. In this article I will discuss the various techniques and processes for building financial fraud cases using computer technology. From data entry and conversion to advanced search algorithms that aid in classification, managing a financial fraud case has never been easier, if you know the right techniques and tools to use. [Read more...]
By Fraud Expert, Ed Martin
THE TRUTH ABOUT FRIVOLOUS TAX ARGUMENTS
From www.irs.gov
I. The Voluntary Nature of the Federal Income Tax System
A.Contention: The filing of a tax return is voluntary
B.Contention: Payment of tax is voluntary
C.Contention: The IRS must prepare federal tax returns for a person who fails to file
II. The Meaning of Income: Taxable Income and Gross Income
A.Contention:Wages, tips, and other compensation received for personal services are not income
B.Contention:Only foreign-source income is taxable
C.Contention:Federal Reserve Notes are not income [Read more...]
by Fraud Expert, Ed Martin
When do people embezzle or abuse the company? Generally, three things have to be present before someone commits fraud or embezzles: need, opportunity, and rationalization. This is known as the “triangle of fraud.”
Need – Direct need is stealing to fund cash needs and is often driven by an addiction – drugs, alcohol, gambling, or an extramarital affair. Therefore, the next time someone brags about an affair, a warning flags should go up if the handle your company funds. [Read more...]
by Fraud Expert, Ed Martin
If you are unfortunate enough to have IRS Criminal Investigation (CI) target you and execute a search warrant on your residence, cars, and small business here is what to expect. An IRS Special Agent with information sufficient to establish probable cause for a search warrant has filed an affidavit with a US Magistrate and obtains a search warrant. [Read more...]
by Fraud Expert, Ed Martin
6 Tips to minimize fraud risk:
“After a quarter century as an investigative journalist, I’ve worked with the good, the bad and the very ugly. Without equivocation, I can say that I’ve never come across an investigator who can match Ed Martin’s skills. He’s world class and he can do it all. As his Cajun brethren might say – You ain’t gonna find a better houn’ dawg.”
— Ted Dracos, author UnGodly: The Passions, Torments and Murder of Atheist Madalyn Murray O
"Ed Martin was my Forensic Accounting Expert in an embezzlement case in Caldwell County. I appreciate the way he thoroughly converted raw data into an easily understandable summary--one that I could understand, but more importantly, a presentation which was understood by the jury. The total package--development and testimony before a jury--was professional from start to finish."
— Tom Garner Special Prosecutor, Caldwell County
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