Audit problems? Don't try to have the IRS agent whacked

Randy Nowak, a Florida resident, has been arrested and charge with attempted murder of an employee of the United States for plotting to kill an Internal Revenue Service employee. He wanted the IRS Revenue Officer killed because she was investigating his personal and business finances.

Nowak offered an undercover FBI agent $20,000 to kill the Revenue Officer, and even put $10,000 down toward the deed. He also inquired as to whether the undercover agent would be willing to burn down the IRS office in Lakeland, Florida. The taxpayer allegedly had $4 million hidden in offshore accounts, and was going to owe around $300,000 in back taxes. The tax liabilities related to un-filed corporate taxes for his construction business, R.J. Nowak Enterprises, Inc.

When negotiating with the IRS about tax liabilities, it's probably best if you're not trying to kill the person in charge of auditing you. It's much more cooperative if it doesn't think you're trying to hire a hit man to whack one of its officers. And believe it or not, the IRS does negotiate on tax bills and a taxpayer who goes about it the right way might have some success in reducing what's owed and making payment arrangements.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.