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Thursday, May 14th, 2009
The IRS has announced a six-month Voluntary Disclosure program that offers lower penalties to those who come forward and pay taxes due on the secret holdings in offshore accounts. Until now, the IRS could impose penalties of at least 50% for all years in which an account wasn’t disclosed. In some cases, that could exceed the value of the offshore holdings.
The announcement comes amid a U.S. legal battle to get owners’ names for 52,000 UBS accounts in which Americans evaded taxes by holing at least $14.8 billion in Swiss banks.
The IRS also issued a list of 30 frequently asked questions about the Voluntary Disclosure process – which offers leniency to taxpayers with unreported income relating to offshore transactions. Along with lower tax penalties, those who comply are expected to avoid criminal prosecution
We have been making one disclosure after another – including some “quiet disclosures.” While the IRS encourages taxpayer to come forward under the voluntary disclosure offer, it is also possible to file amended returns and pay any related taxes and interest for previously unreported offshore income without otherwise notifying the IRS.
Quiet disclosures should only be attempted by specialized and experienced tax experts, as any amended tax returns reporting increases in income run the risk increased scrutiny from the IRS.
Income tax relief under the voluntary disclosure process is open to all taxpayers that comply with IRS’s terms, including corporations, partnerships and trusts, as well as those taxpayers that have an offshore merchant account. The offer does not apply if IRS has initiated a civil examination of the taxpayer, regardless of whether it relates to undisclosed foreign accounts or undisclosed foreign entities.
According to USA Today:
Under the plan, owners who disclose foreign accounts would pay:
* Back taxes and interest for a minimum of six years.
* A 25% delinquency penalty for each year in which tax returns weren’t filed, or a 20% accuracy penalty for years in which returns were filed but income from offshore accounts wasn’t included.
* A penalty equal to 20% of the highest aggregate value at any point during the last six years for all previously secret foreign accounts.
Robert McKenzie, a lawyer for more than a dozen American clients with UBS accounts, predicted the program would prompt more disclosures because it would enable evaders to compute their liability “almost to the penny” — which wasn’t possible before. The IRS said the number of Americans who have disclosed foreign accounts has more than doubled this federal fiscal year over 2007-08.
** If you require assistance with a voluntary disclosure or need help resolving other IRS problems, contact our specialized staff of tax attorneys, CPAs, EAs and tax professionals. Visit the Tax Resolution Services web site for a free income tax relief consultation or call us at 866-IRS-PROBLEMS.
Tags: amending tax returns, back tax, filing tax returns, income tax relief, IRS help, IRS penalties, irs problems, IRS tax problems, Michael Rozbruch, off shore banking, quiet disclosures, tax attorney, tax evasion, tax expert, tax resolution, tax resolution services, UBS legal battle, Voluntary Disclosure
Posted in Tax news and tips, Voluntary Disclosure | 1 Comment »
Tuesday, May 12th, 2009
A commercial real estate agent in Florida has been charged with tax evasion. The government alleges Thomas W. Daugherty, 53, of Fort Myers, evaded paying approximately $1.6 million in taxes from 1998 to 2005.
According to the government, Daugherty maintained a cash lifestyle to hide his earnings. He refrained from depositing his commission checks into his bank account and instead converted his commission checks into cash and multiple cashier’s checks payable to him. He then deposited cash into his personal accounts to cover expenses about to clear. From November 2002 to April 2008, Daugherty purchased more than 200 cashier’s checks for more than $2.1 million.
He faces up to five years in prison.
Penalties are severe for evading taxes or underreporting income! We are tax attorneys and IRS specialists and can help you – from Florida to California! For a free tax consultation fill out our form online!
Tags: Florida IRS specialist, Florida tax attorney, Florida tax consultation, Florida tax evasion, Florida tax help, Florida Tax Resolution, Free Tax Consultation, IRS specialist, tax attorney, tax cheat, tax evasion, underreporting income
Posted in IRS Tax Cases, IRS Times and Inquirer | No Comments »
Friday, May 8th, 2009
Obama proposed nearly doubling funds to enforce tax compliance and has asked Congress for a $400 million boost for IRS enforcement activities in fiscal year 2010, to support its goal of cracking down on offshore tax dodgers.
The additional $400 million is an increase of about 8% that would bring the total IRS enforcement budget to around $5.5 billion for FY 2010. By doubling the tax law enforcement budget, the White House hopes to collect an additional $17 billion in taxes by 2010.
Obama has also announced a legislative proposal to hire 800 new IRS agents to enforce the tax code and focus on the offshore tax problem to help close the $345 billion tax gap.
The IRS also plans to triple the total amount it pays to informants who help catch tax cheats. Such payments totaled $22 million in 2008. The IRS expects to pay out $50 million to informants in 2009, and has budgeted another $75 million for 2010.
According to The Wall Street Journal:
Mr. Obama also proposed steeper levies on payments to federal contractors that owe back taxes to the IRS. The administration asked to increase from 15% to 100% the amount of federal payments to contractors that the IRS can levy.
The current limit of 15% is due to a technical error in a 2004 law, according to the White House budget proposal.
In addition, the administration would allow such levies to be imposed more quickly than under current law. The proposal would allow levies on contractor payments before all IRS administrative appeal processes have run their course.
The White House estimates that the two changes would allow IRS to collect roughly another $200 million a year in delinquent taxes.
The IRS is growing increasingly aggressive when pursuing tax cheats. If you can’t afford to pay your taxes or have unfiled tax returns, it’s more important than ever to know your options for income tax relief!
** If you have unfiled tax returns or other IRS problems, contact our specialized staff of tax attorneys, CPAs, EAs and tax professionals. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
Tags: Back Taxes, delinquent tax returns, delinquent taxes, income tax relief, IRS enforcement, IRS help, IRS levies, irs problems, Michael Rozbruch, offshore tax dodgers, tax attorney, tax cheats, tax compliance, tax enforcement, tax evasion, tax expert, tax gap, tax help, tax resolution, tax resolution expert, tax resolution services, unfiled tax returns
Posted in Tax news and tips | 2 Comments »
Thursday, May 7th, 2009
A revenue agent with the Internal Revenue Service has agreed to plead guilty to a federal tax fraud charge for filing a personal income tax return that claimed he suffered a loss in a real estate transaction when in fact he realized a substantial profit.
In a plea agreement, Jim H. Liu, 43, of Diamond Bar, Calif., agreed to plead guilty to subscribing to a false tax return — a charge that carries a penalty of up to three years in federal prison. As an IRS employee, Liu conducted audits of taxpayers.
Liu admitted he filed a false tax return for the 2002 tax year that improperly claimed a loss on his sale of a property in Pomona. Liu sold the property for a profit of more than $48,000, but he instead claimed a loss of more than $4,200. The tax loss to the government, as a result of Liu’s filing, was approximately $14,642.88.
No one can evade taxes. I’ve blogged about celebrities, businessmen and women, attorneys and more who have been caught cheating on their taxes. If you are having tax troubles, Tax Resolution specialists can help you find a tax solution! Fill out a free tax consultation form or call us at 1-866-IRS-PROBLEMS (1-866-477-7762).
Tags: filing false tax return, Free Tax Consultation, IRS employee guilty of tax fraud, IRS employee tax fraud, tax cheat, tax fraud
Posted in IRS Tax Cases, IRS Times and Inquirer | No Comments »
Sunday, April 26th, 2009
QUESTION: Some of my income is paid to me in cash. If I do not report all of it, will the penalty be a fine?
Answer: Whether you underreport some, most, or all of your income, the penalties are severe! Do not think that the IRS will fine you and that is it! The IRS will consider you a tax cheat and you will be guilty of tax evasion, even for a the smallest amount of underreported income.
In a severe case, like the one below, the man faces up to five years in prison and a fine of up to $100,000!
John Patrick Armstrong, 45, of Raleigh, N.C., was indicted for tax evasion relating to individual returns for the years 2002 to 2004.
The government alleges Armstrong underreported his income from 2002 to 2004 by $1.5 million. In addition to the tax evasion charges, Armstrong is cited with failing to disclose his interest in or authority over financial accounts in a foreign country for the years 2002 to 2004.
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Got tax questions about tax audits, wage garnishments, IRS bank levies, payroll tax problems, or tax relief in general? Call us today at 1-866-IRS-PROBLEMS or visit www.taxresolution.com for a free risk-free tax resolution consultation.
Tags: attempted tax evasion, tax cheat, tax evasion, underreporting income
Posted in Ask the Expert, IRS Tax Cases, IRS Times and Inquirer | 3 Comments »
Friday, April 24th, 2009
Daniel L. French, of Akron, Ohio, was charged with three counts of attempting to evade his personal income taxes and two counts filing false income tax returns for a solely-owned corporation he operated in Macedonia, Ohio.
The first two counts allege French filed false returns for the years 2002 and 2003, which listed deductions for corporate payments that were in fact disbursements for personal benefit. These disbursements are alleged to be checks to a fictitious entity whose bank account French controlled under that name. He was also charged with attempting to evade his taxes for 2004 by failing to file an income tax return.
You will not get away with tax evasion! If you feel a tax burden, contact us! We are a tax resolution company with tax attorneys and IRS problem solvers to help you find tax relief! 1-866-IRS-PROBLEMS or 1-866-477-7762.
Tags: failing to file income tax return, filing false income tax return, filing false tax return, IRS problem solver, tax attorneys, tax cheat, tax evasion, tax relief, tax resolution
Posted in IRS Tax Cases, IRS Times and Inquirer | No Comments »
Monday, April 20th, 2009
Did you pay your taxes this year? You can run, but you can’t hide from the IRS! However, there is hope for struggling taxpayers to resolve back taxes and avoid IRS penalties!
For the millions of Americans who failed to file legally required tax returns, there’s still hope for receiving income tax relief! Even taxpayers who received an extension for filing are not granted more time for the payment of taxes owed and may need income tax relief.
The act of not filing your tax returns can lead to more significant financial problems in the long run. Not to mention, failure to file tax returns may be construed as a criminal act by the IRS, punishable by one year in jail and $10,000 for each year not filed. Needless to say, it’s one thing to owe the IRS money, but another thing to potentially lose your freedom for failure to file a tax return.
The longer you put off dealing with overdue taxes, the more serious your IRS problems will be. So I recommend filing any tax returns that are due as soon as possible to avoid additional interest, penalties and potential IRS collection tactics, such as a levy on your bank account.
With the federal budget deficit for the current year expected to top $1.8 trillion, Americans can expect more tax audits and increased IRS actions. So anyone who owes back taxes will want to avoid becoming targets of aggressive IRS collection efforts that can financially cripple them for life.
Here are 5 reasons to file your delinquent tax returns:
1) You can go to jail for not filing your taxes
Even if you haven’t filed your tax return for one year – it is still considered delinquent and could be construed by the IRS as a criminal offense. Actor Wesley Snipes didn’t report more than $10 million to the IRS and he was convicted of three misdemeanor counts of failing to file a tax return. Richard Hatch, who won the first season of CBS’s hit show Survivor, is in prison for failing to report $1 million in prize money.
The IRS goes after those U.S. taxpayers who try to avoid taxes, and Average Joes as are just as likely as high-profile individuals to be targets of the tax-collecting agency. At every level, the agency has become increasingly aggressive in pursuing tax cheats. Are you willing to lose your freedom because you failed to file your tax returns?
2) You can incur a 25% penalty for not filing your tax returns
In this economic downturn, Americans may opt to not file because they don’t have the funds to pay the taxes owed. The best thing for taxpayers in difficult financial situations to do is file their tax return, pay what they can and work with the IRS to establish a payment plan that will keep them compliant.
Additionally, if there are any delinquent tax returns that are due, they should consider filing these returns as soon as possible to avoid the wrath of any potential IRS action, such as a levy on their bank accounts.
3) You can incur additional penalties for not paying your taxes
If you fail to pay your taxes due, you will incur additional penalties for failure to pay. Taxpayers who request an extension of time to file should keep in mind that this it is not an extension of time to pay. To avoid additional penalties, taxpayers should file by the deadline and pay as much as they can, even if they are unable to pay the entire amount due. You will still have a failure to pay penalty, but it’s much less. Then you can work with a specialized tax resolution expert to help you negotiate a tax settlement.
4) You can be subject to an increased tax bill if the IRS prepares your taxes for you
The IRS may prepare a “Substitute For Return” for delinquent taxpayers, in which they won’t be able to file for all of their personal exceptions or allowable deductions. Because these returns are filed in the best interest of the government, the only deductions they’ll usually see are the standard deduction and one personal exemption, subjecting them to a larger tax liability. So it’s important for individuals to file their 2008 tax return as well as any prior delinquent tax returns as soon as possible to save money and avoid significant long-term consequences.
5) You must have all prior tax returns filed to be eligible for income tax relief
All back tax returns must be filed before the IRS will even entertain any type of tax settlement like an offer in compromise or a monthly IRS payment plan arrangement. The good news is the sooner you take care of your delinquent taxes, the less penalties and interest you’ll owe.
I believe there’s a solution to every problem… It’s never too late for to resolve your tax debt and avoid IRS penalties.
** If you have unfiled tax returns or other IRS problems, contact our specialized staff of tax attorneys, CPAs, EAs and tax professionals. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
Tags: bank levy, delinquent tax returns, failure to file federal tax return, failure to file penalty, failure to pay penalty, income tax relief, IRS payment plan, IRS penalties, Michael Rozbruch, Offer in Compromise, Richard Hatch, substitute for return, tax advice, tax attorney, tax expert, tax help, tax resolution, tax resolution expert, tax resolution services, tax settlement, Tax Tips, unfiled tax returns, wesley snipes
Posted in Tax Resolution Options and Alternatives, Tax news and tips, Working with the IRS | 5 Comments »
Saturday, April 18th, 2009
Thomas E. Cowan Jr., 64, of Elizabethton, Tennessee, has been indicted by a federal grand jury on one count of income tax evasion and three counts of failure to file income tax returns.
According to the indictment, Cowan, an attorney, attempted to evade a large part of the income and self-employment taxes, penalties and interest due to the United States for tax years 1993 to 1997. The indictment alleges that Cowan failed to file income tax returns with the IRS each year and failed to pay any income tax due and owing for those years. Additionally, the indictment states that Cowan concealed his true income and assets by diverting income checks into the checking account of a family member, cashing checks, depositing earned income and making personal payments to and from his law firm’s trust account, and using nominees to conceal the ownership of assets from the United States.
The indictment also charges Cowan with failing to file federal income tax returns with the IRS for 2002, 2003 and 2004. In each of those years, the indictment states, Cowan had gross income totaling $112,677.78, $72,412.63, and $50,971.83, respectively.
If you are looking for tax relief, we can help you! We are a team of tax attorneys and IRS problem solvers. We offer free tax consultations on our Tax Resolution Services website or by calling 1-866-IRS-PROBLEMS (1-866-477-7762).
Tags: concealing income, concealing income from IRS, failed to file income taxes, failure to file tax return, Free Tax Consultation, income tax evasion, tax cheat, tax evasion, tax relief, Tennessee free tax consultation, Tennessee tax evasion
Posted in IRS Tax Cases, IRS Times and Inquirer | 3 Comments »
Tuesday, April 14th, 2009
Internal documents reveal IRS has made offshore tax evasion its highest-priority target; investigators will focus on unreported income
By Michael Rozbruch
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The memo sent to examination staff of the Internal Revenue Service was clear.
Investigators should make sure offshore tax cases “receive priority treatment.”
Indeed, internal documents released by the tax-collecting agency, coupled with public comments from IRS Commissioner Doug Shulman, leave little doubt the government will focus the brunt of its enforcement efforts on taxpayers who use offshore bank accounts to hide income.
In anticipation of this newly aggressive tax enforcement, the IRS is offering temporary amnesty to those taxpayers hiding money overseas. Taxpayers who come forward will face fines, penalties and interests — but the IRS will waive all criminal charges, Shulman announced recently.
“This is a chance for people to come clean on their own,” said the IRS commissioner.
The rank-and-file investigators of the IRS, meanwhile, have received memos pushing them toward investigating more thoroughly taxpayers who use offshore bank accounts.
“Offshore cases sent to the field are work of the highest priority,” said an IRS internal documents. “Examiners should utilize the full range of information gathering tools in properly developing offshore issues with special emphasis on detecting unreported income. This includes interviewing taxpayers, making third-party contacts and timely issuing summonses to taxpayers and third parties.”
The emphasis on offshore accounts comes at an opportune time for the IRS. For the first time, U.S. officials have successfully pierced the secrecy veil of banks in Switzerland, where many wealthy Americans hide money.
Earlier this year, Switzerland agreed to cooperate more on tax evasion cases due to an IRS investigation and lawsuit concerning UBS.
UBS, the largest bank in Switzerland, has agreed to provide the U.S. government with the names of those it suspects of using its accounts to evade paying taxes in the United States. The agreement came after UBS agreed to pay $780 million to settle an investigation of its activities.
From 2002 to 2007, UBS helped American clients evade as much as $300 million a year in taxes, prosecutors allege.
Those using Swiss banks to evade income taxes aren’t the only ones who risk being caught by the IRS, however.
Earlier agreements with credit cards companies have given the IRS unprecedented information about taxpayers who use a credit card linked to offshore accounts, such as in the Caribbean. A common tactic for tax cheats has been to funnel money to an overseas account, link the account to a credit card, and then pay all expenses in the United States using that credit card.
Now that Swiss banks are cooperating and credit card companies are providing records, there’s no safe place to hide your money. It’s time to come forward.
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Michael Rozbruch is a Certified Tax Resolution Specialist, a member of the American Society of IRS Problem Solvers and a Maryland CPA. You can contact him at 866-477-7762 to obtain a free subscription to his newsletter titled The IRS Times & Inquirer. If you are seeking tax relief, fill out the free tax consultation form on Tax Resolution’s website or contact us at 1-866-IRS-PROBLEMS (1-866-477-7762).
Tags: aggressive tax enforcement, amnesty to taxpayers hiding money overseas, doug shulman, evade income taxes, Free Tax Consultation, free tax relief consultation, hiding income, offshore bank accounts, offshore tax cases, offshore tax evasion, Swiss banks, tax cheats, tax evasion, UBS, unreported income
Posted in IRS Tax Cases, IRS Times and Inquirer, Seeking Professional Tax Help, Working with the IRS | 3 Comments »
Tuesday, April 14th, 2009
As I’ve mentioned before, average citizens are just as likely to get in tax trouble for tax evasion and filing false tax returns as high profile celebrities. And the individuals who assist tax cheats should also beware!
CCH (http://tax.cchgroup.com/) reports:
A federal district court determined the base offense level and appropriate sentencing enhancement of an individual convicted of aiding and assisting in the filing of materially false tax returns. The court based its calculation of the applicable tax loss on amounts that the government proved by a preponderance of evidence, including tax losses related to conduct that was proven by that standard but of which the individual was acquitted.
Furthermore, a sentence enhancement for the individual’s aggravating role in the offense was applied because the individual played an active and managing role in the criminal activity. However, because the individual’s sentence range was adjusted with respect to his aggravating role, an additional enhancement for use of a special skill was not available.
R. Stadtmauer, DC N.J.
Tags: filing false tax returns, tax cheats
Posted in IRS Tax Cases, Tax news and tips | No Comments »
Friday, April 10th, 2009
John C. Gedekoh III of Belle Vernon, Pennsylvania, was indicted by a federal grand jury in Pittsburgh on charges of filing false tax returns.
According to the indictment, Gedekoh knowingly filed false federal income tax returns for the years 2002 to 2005 by understating his gross receipts by $223,161.81. The IRS Criminal Investigation Division conducted the investigation leading to the indictment in this case.
If convicted, Gedekoh faces up to 12 years in prison and a fine of up to $1 million.
If you have tax problems or are living in fear of the IRS, contact our team of tax attorneys and IRS problem solvers before it’s too late! There are tax solutions that can help you. Sign up for a free tax consultation or call us at 1-866-IRS-PROBLEMS (1-866-477-7762) today!
Tags: avoiding taxes, filing false federal tax return, Free Tax Consultation, IRS help, IRS specialist, Pennsylvania tax help, Pennsylvania tax relief, tax attorney, tax cheat, tax evasion, tax relief, tax solutions
Posted in IRS Tax Cases, IRS Times and Inquirer | No Comments »
Monday, April 6th, 2009
Prosecutors allege Washington, D.C., Council member and former Mayor Marion Barry has failed to pay more $277,000 in back taxes.
In a recent court filing, prosecutors told the court the politician had not made a tax payment during a period in which he took a Jamaican vacation and ran for re-election to the Ward 8 council seat.
“There is no excuse for the defendant’s failure to make payments to the District of Columbia because, during this six-month period, the defendant nevertheless had enough time and money, for instance, to take a six-day vacation in Jamaica in Sept. 2008 as well as to run for re-election as a council member,” prosecutors told the court.
In 2006, Barry received three years of probation for not filing tax returns from 1999 to 2004.
Avoiding taxes does not just happen with regular citizens. I’ve blogged about famous people before who are in trouble with Uncle Sam! If you have tax problems, let our tax specialists and tax attorneys help you! Call us at 1-866-IRS-PROBLEMS (866-477-7762) or sign up for a free tax consultation.
Tags: avoiding taxes, Back Taxes, Free Tax Consultation, IRS back taxes, marion barry, mayor marion barry, not filing tax returns, tax cheat, tax specialists
Posted in IRS Tax Cases, IRS Times and Inquirer | No Comments »
Tuesday, March 31st, 2009
Sharon Brown-Acklin, 36, of Hamilton, Ala., was sentenced to 12 months and one day in prison for 27 counts of preparing false tax returns. In addition, Brown-Acklin will serve one year of supervised release and was ordered to pay $79,832 in restitution to the IRS. Brown-Acklin’s use of false information, including filing status and inflated deductions, resulted in $252,123 of improperly claimed deductions and exemptions.
I’ve blogged about tax evasion before. If you feel like you are in a tax bind, our tax attorneys and IRS specialists may be able to help you. Contact us at 1-866-477-7762 or fill out a free consultation form online.
Tags: filing false tax returns, preparing false tax returns, tax cheat, tax evasion
Posted in IRS Tax Cases, IRS Times and Inquirer | No Comments »
Friday, March 27th, 2009
The IRS announced new voluntary disclosure practices for offshore account holders. Voluntary disclosure can help taxpayers avoid prosecution for possible tax evasion and reduce taxes, penalties, and interest owed. The IRS offers leniency for voluntary disclosure and Americans with IRS tax problems should take advantage of this policy to mitigate legal problems later.
While taxpayers can participate in the voluntary disclosure program before the IRS has initiated a civil or criminal examination or before the taxpayer has received notice of such an investigation, it remains unclear as to whether those charged with offshore tax evasion and concealing back accounts in Switzerland may successfully participate in this initiative.
CCH (http://tax.cchgroup.com/) reports:
The IRS has announced new steps to coax U.S. taxpayers with undisclosed foreign bank accounts to come forward. In return for paying back taxes for the past six years, plus interest and a set of stiff penalties, the IRS will promise not to bring criminal charges or the 75-percent fraud penalty. IRS Commissioner Douglas H. Shulman announced this policy shift and clarification at a press briefing from his Washington, D.C. offices on March 26, at which he also released internal IRS documents that put the plan into motion.
“We believe the guidance represents a firm, but fair, resolution of these cases and will provide consistent treatment for taxpayers,” Shulman explained. “The goal is to have a predictable set of outcomes to encourage people to come forward and take advantage of our voluntary disclosure practice while they still can.” He set a deadline of six months for disclosures under the terms of the guidance, at which time the program will be re-evaluated.
The IRS has issued a series of three memoranda, and has revised the Internal Revenue Manual (IRM), to reflect updated policies concerning voluntary disclosure, primarily in connection with offshore transactions. Voluntary disclosure occurs when a taxpayer timely discloses information necessary to determine or correct the taxpayer’s liability. The IRM continues to provide that its voluntary disclosure practices do not create any substantive or procedural rights for taxpayers, but are a matter of internal IRS practice.
Voluntary Disclosure Terms
Shulman emphasized that the terms being offered for the disclosure of offshore accounts are an outgrowth of current policy and carry penalties at a level consistent with voluntary disclosure programs in the past. Within this framework, Shulman enumerated the amounts that would need to be paid by taxpayers with heretofore undisclosed offshore accounts who “come clean” under the program:
- Back taxes due on newly disclosed assets for the last six years;
- Interest due on these back taxes for the last six years;
- A 20-percent accuracy-related under Code Sec. 6662 or a 25-percent delinquency penalty under Code Sec. 6651 for each tax year at issue; and
Looking to the past six years, a 20-percent penalty on the total balance of all the taxpayer’s foreign bank accounts or assets during the year among the past six in which the accounts had their highest aggregate value.
While Shulman observed that the penalties demanded under the program are not insubstantial, he pointed to several advantages to participating taxpayers regarding what the IRS will not do:
- The IRS will not pursue charges of criminal tax evasion against taxpayers who voluntarily disclose their offshore assets under this new policy; and
- The IRS will not pursue other penalties against participating taxpayers, such as the Code Sec. 6663 fraud penalties (75-percent of the unpaid tax) or the statutory penalty for willful failure to file a TD F 90-22.1, Report of Foreign Bank and Financial Accounts Report, (FBAR) (the greater of $100,000 or 50-percent of the foreign account balance) that both annually apply to undisclosed accounts and assets during the relevant tax years.
Shulman also touted the advantage to offshore account holders of “getting the matter behind them” and giving them certainty as to their tax liability.
In a follow-up comment, an IRS spokesman emphasized that “it is too late for any taxpayer who is under criminal investigation to make a voluntary disclosure. The IRS cannot discuss specific situations, but the voluntary disclosure process does not apply when the IRS has information related to a specific taxpayer from a criminal enforcement action.”
By Torie Cole and Sherri Morris, CCH News Staff
Follow me onTwitter @taxresolution
Tags: avoid IRS penalties, Douglas Shulman, Michael Rozbruch, offshore accounts, offshore tax evasion, reduce IRS penalties, tax evasion, tax expert, tax help, tax relief, tax resolution, tax resolution expert, tax resolution services, tax settlement, tax shelter, Voluntary Disclosure
Posted in Tax news and tips, Voluntary Disclosure | 2 Comments »
Tuesday, March 17th, 2009
Cheryl McMillan, 56, and Marion McMillan, 61, of Monument, Colo., were charged with tax evasion. The government alleges the husband and wife filed false and fraudulent tax returns that substantially underreported income for the tax years 2003 and 2004.
Cheryl McMillan faces two counts of tax evasion, while her husband Marion faces one count of tax evasion. They both face up to five years in prison and a $100,000 fine for each count.
“Tax scofflaws may wind up behind federal bars,” said United States Attorney Troy Eid in a statement.
Tags: filing false tax returns, fradulent tax returns, tax cheat, tax evasion, underreported income
Posted in IRS Tax Cases, IRS Times and Inquirer | 2 Comments »
