If you owe the IRS money, do not offer the agent pizza
Filed under: Tax, Relationships
Today's tax tip is simple: If you owe the IRS money and an agent comes knocking at your door, there are a number of ways to handle the matter. Offering the agent free pizza and cash in exchange for reducing your tax liability? Probably not the best approach.Ramesh G. Khilnani, 51, a Houston-area resident and a native of India, offered an IRS agent free pizza and "work" after he was told he owed $49,000 in back taxes for the years 2004-2007 as the result of an audit.
WebCPA reports that after the auditor reported the incident to her supervisor, "Agents from the Treasury Inspector General for Tax Administration arranged for the recording of subsequent meetings – via telephone and in person -- between the agent and Khilnani. During the course of these contacts, Khilnani offered the agent $2,500 and delivered $2,000 in exchange for having his tax liability reduced from $49,000 to around $500. In addition to financial compensation, Khilnani repeatedly offered the agent pizza from his restaurant as part of the deal."
Khilnani pled guilty to bribery charges and was sentenced to two years in federal prison and could face deportation once he is released.
Taxes in the News
WASHINGTON - MAY 28: Dan Danner (L), Independent Business President and Chief Executive Officer, and Ron Williams (C), Aetna Inc. Chairman and Chief Executive Officer look over their papers while Ron Pollack (R), Families USA Executive Director speaks during a press conference at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Federation of Dan Danner, Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Pollack;Ron Williams;Dan Danner
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WASHINGTON - MAY 28: Ron Pollack, Families USA Executive Director speaks during a press conference at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Pollack
Getty Images
WASHINGTON - MAY 28: Ron Williams (L), Aetna Inc. Chairman and Chief Executive Officer and Ron Pollack (R), Families USA Executive Director listen to Dan Danner (C), Federation of Independent Business President and Chief Executive Officer speak during a press conference at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Dan Danner;Ron Pollack;Ron Williams
Getty Images
WASHINGTON - MAY 28: Dan Danner (L), Federation of Independent Business President and Chief Executive Officer and Ron Pollack, Families USA Executive Director, listen to Ron Williams, Aetna Inc. Chairman and Chief Executive Officer speak at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Williams;Ron Pollack;Dan Danner
Getty Images
WASHINGTON - MAY 28: Ron Williams, Aetna Inc. Chairman and Chief Executive Officer listens during a press conference at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Williams
Getty Images
WASHINGTON - MAY 28: Dan Danner (L), Federation of Independent Business President and Chief Executive Officer and Ron Pollack, Families USA Executive Director, listen to Ron Williams, Aetna Inc. Chairman and Chief Executive Officer speak at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Williams;Ron Pollack;Dan Danner
Getty Images
WASHINGTON - MAY 28: Dan Danner (L), Federation of Independent Business President and Chief Executive Officer listens to Ron Pollack (R), Families USA Executive Director speak at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Pollack;Dan Danner
Getty Images
WASHINGTON - MAY 28: Dan Danner, Federation of Independent Business President and Chief Executive Officer listens during a press conference at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Dan Danner
Getty Images
WASHINGTON - MAY 28: Ron Williams, Aetna Inc. Chairman and Chief Executive Officer waits to speak at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Williams
Getty Images
WASHINGTON - MAY 28: Ron Williams, Aetna Inc. Chairman and Chief Executive Officer speaks at the National Press Club May 28, 2009 in Washington, DC. Ron Williams, Aetna Inc. Chairman and Chief Executive Officer, was joined by Ron Pollack, Families USA Executive Director, and Dan Danner, Federation of Independent Business President and Chief Executive Officer, to speak about hidden costs in healthcare caused by cost shifting to pay for treatment of uninsured patients. (Photo by Brendan Smialowski/Getty Images) *** Local Caption *** Ron Williams
Getty Images
Reader Comments (Page 1 of 3)
5-29-2009 @ 11:01AM
Texas Bubba said...
That's quite a request by Mr. K, who appears to be a successful businessman (pizza restaturant). A $48,500 discount for a revised audit balance of $500 for a $2,500 under-the -table payment. He knew exactly what he was doing. Bribery of a federal officer is a felony. I pay my taxes and really don't want to subsidize anyone else. If he didn't agree with the audit findings he should have contested it or even appealed it to US Tax Court. What a dummy.
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5-30-2009 @ 2:02PM
jbjg24m said...
IDIOT !!!!!!!!!!!!!!!!!!!1
Reply
5-30-2009 @ 10:43PM
Ty said...
If it was called a contribution to a campaign fund everything would have been ok
Reply
5-30-2009 @ 2:27PM
b said...
those bastards.... irs agents are largely A-holes
Reply
5-30-2009 @ 3:12PM
Taxman said...
Typical cheating Indian, always looking to rip off the system. I can hear the racist card being played already, but its true. Glad he got what he deserved. Ask an Indian to take $500 for 49,000 worth of goods and watch them scream.
Reply
5-30-2009 @ 4:13PM
Annonymous said...
I don't think that you should say that. Not all indians are like that. Yes, I would play the racist card, because you're crazy to think that. That is being judge mental and rude. I know plenty of indians who are not the way you described. So, I say you are wrong, judge mental, and rude.
5-30-2009 @ 3:17PM
Cybertrip said...
Taxman you are right. If people play the racist card against you then they should do it against this story, after all, what does the fact that he was a native of India have to with the story? Instead of an illegal alien taking a job away from from an american it was a legal alien?
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5-30-2009 @ 4:29PM
PAGS said...
THE ILLEGAL INDIAN GOT WHAT HE DESERVED. HE SHOULD PAY THE THE BACK TAXES, SERVE THE 2 YEARS, AND THEN BE DEPORTED, LIKE THE ROTTEN ILLEGAL THAT HE IS. GET ALL ILLEGALS OUT OF THIS COUNTRY, OUT,OUT,OUT. THEY DO NOT BELONG HERE, THEY ARE BAD, VILE, DISGUSTING, DISGRACEFUL, INDIGINOUS, INSIPID, CIRCUOTOUS, IGNOMINIOUS, LACIVIOUS, OBSEQUIOUS, AND DOWNRIGHT AWFUL PEOPLE. THEY ARE COMMITTING CRIME EACH DAY BY BEING HERE ILLEGALLY. GET THEM ALL THE HELL OUT OF HERE!!! IF YOU WANT TO STAY IN THIS COUNTRY, GO THROUGH THE PROPER CHANNELS TO DO SO, IF NOT GET THE HELL OUT, AND BACK TO YOUR OWN PISS POOR COUNTRY YOU CAME FROM. "UNTIL NEXT TIME, AND ALWAYS REMEMBER, YOU HEARD IT FROM HERE FIRST."
PAG...PROFESSIONAL BROADCAST JOURNALIST...YALE GRADUATE...AND SMARTER THAN ALL OF YOU!!!
Reply
5-30-2009 @ 5:26PM
beth said...
Okay you have problems. Worse than mine buddy. We outta deport you for your stupidity. You went to an "ivy league" college and you speak like a 5 yr old.
5-30-2009 @ 7:23PM
Kelli said...
Smarter? Doubt it, just have a bigger mouth than the rest of us.
5-30-2009 @ 8:19PM
Elise, not from Yale said...
Mr. Yale-Educated, you may want to ask for your money back.
There are several spelling errors in your post:
1.) "piss poor" should be hyphenated
2.) "circuitous"
3.) "indigenous"
4.) "lascivious"
Also, several of your adjectives are poorly chosen: "obsequious" means to be servile--are you saying this is a bad thing in this case?; "circuitous" means indirect--there are better words for what you are trying to imply about aliens; "indigenous" means native to the country being spoken of, in this case, the US--but you weren't saying that at all, were you?
You say you're a broadcast journalist--from your comments above, it sounds like that means you don't have to actually write, but merely blow off your big trap! "Smarter than all of you"---I don't think so! Maybe Yale should ask for their degree back.
5-30-2009 @ 8:25PM
nancy said...
Hey dumb a** Yale grad...if he is paying taxes he's not illegal.
5-30-2009 @ 10:00PM
dennis dubois said...
pags and donald trump for president!
6-01-2009 @ 1:04AM
caenca said...
Yale graduated with a pea brain.
6-02-2009 @ 7:11AM
Toni said...
If you are so smart then you would realize the first illegal aliens here were whites!!!!! And guess what nobody invited or wanted your sorry %^&GH here in the first place. So if you are going to talk about illegals you better take your ancestors into account, you dumb &*^ idiot. Yeah your intelligence really shows, or should I say "lack of"!
5-30-2009 @ 4:42PM
Hezza said...
Its not too much on the topic...but its funny how fast we forget that our ancestors were foreigners, too.
Reply
5-30-2009 @ 5:27PM
Beth said...
I agree. I think people have piss poor viewpoints sometimes. Never judge a man til you've walked a mile in their shoes. And even then you shouldn't judge. So to all you haters - shut your traps.
5-30-2009 @ 4:45PM
Sally G said...
Where does it say that this was an illegal resident? A "Houston-area resident and native of India" is what I read, which begs the question of legality. As a citizen of the U.S., he would not be subject to deportation,I don't believe, but as I don't know the situation legal green-card-holding residents of the U.S. who are citizens of another country. The story is remarkable for the small amount of the bribe compared to the taxes due: why would a businessman think that the agent would be willing to go along with such a scheme for such a small amount? Was there anther factor that wasn't covered in this report?
And yes, I agree that racist comments get us nowhere; Taxman, you are in the wrong.
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5-30-2009 @ 4:46PM
Miz said...
Mr. Khilnani should have learned the rules: The+IRS=Theirs
Reply
5-30-2009 @ 9:52PM
jonas said...
I don't like to pay anymore taxes then I simply have to, but I don't think I would try and bribe a IRS agent with pizza. But what reslly puzzles me is the way the IRS bares down on the average tax payer, and lets the guys like our very own Tim Geithner, and some or the other appointees or Obama get by with owing the iRS and they get a slap on the wrist, and go on to be in the goverment. Kind of Crazy.
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