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Thursday, July 23rd, 2009
Georgia resident Yolanda Canty and Jacqueline Kier pleaded guilty to conspiracy to defraud the government following an IRS investigation that discovered their fraudulent tax-refund scheme.
The pair was involved in a scheme to file false tax returns based on fabricated W-2 forms in their own names and in the names of others.
Most of the “taxpayers” had no knowledge of the returns being filed in their names.
They would persuade individuals to provide them with their names, Social Security numbers and dates of birth. The defendants would use this information to create false W-2 forms in the name of actual employers who did not employ the individuals.
The tax returns would be electronically filed and requests made for refund-anticipation loans; then the refunds would be sent by direct deposit to a bank account which was controlled by the defendants.
According to the IRS, the estimated loss from the conspiracy totaled $192,529.
Canty and Kier face up to 10 years in prison and a fine of up to $250,000.
Tax fraud always catches up to you! I’ve blogged before about the penalties you could face for filing false tax returns. The IRS takes their job seriously, as you can see in the above article. Taxes can seem overwhelming and filing false tax returns is NOT the way to earn extra money! If you need tax relief, our professional tax attorneys and IRS specialists can help you today. Tax Resolution Services offers a free tax consultation – fill out the online form or call us at 1-866-IRS-PROBLEMS today!
Tags: conspiracy to defraud, defraud government, fabricated W2 forms, false W2 forms, filing false tax returns, Free Tax Consultation, tax attorneys, Tax Conspiracy, tax fraud, tax help, tax refund conspiracy, tax relief, tax resolution services, tax specialists
Posted in IRS Tax Cases, IRS Times and Inquirer | No Comments »
Wednesday, July 22nd, 2009
In the current environment of increasing IRS enforcement efforts, it is unwise for taxpayers to evade taxes and think that they can get away with it.
While it may be true that a small percentage of tax evaders could enjoy a few years of “freedom” from the IRS, the ones who do get caught could be served with debilitating bank levies and heavy wage garnishments for life. (And you never know when the IRS will find you!)
The current yearly tax gap is at an astonishing figure of $345 billion and still growing at 10% every year. With the economy in shambles, the government is more pressured now than ever to close the tax gap in order to pay for projects that will ultimately help sustain a healthy economy.
There is a big difference between tax evasion and tax avoidance: while it is perfectly legal to work within existing law to avoid paying more than what is required by the IRS, cheating the government on taxes by evading tax laws is criminal and can carry up to a 5-year prison sentence and/or IRS penalties up to $100,000.
If you do find yourself under criminal charges by the IRS, you have the right to seek professional tax help from a tax lawyer. Oftentimes, help from a tax expert may make the difference between harsh penalties and substantial penalty discharges.
For the full press release on Costly Tax Evasion Schemes.
Make sure you know the difference between what is legal and what could get you in jail. 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 taxes, IRS debt, IRS enforcement, IRS problem solver, IRS tax audits, IRS tax problems, Michael Rozbruch, tax attorney, tax audit, tax cheat, tax cheats, tax evasion, tax expert, tax fraud, tax lawyer, tax resolution
Posted in IRS Question Corner, Seeking Professional Tax Help, Tax Debt Help News, Tax Liens and Levies, Tax news and tips, tax help | No Comments »
Tuesday, July 21st, 2009
Principles and ideals of equal rights aside, the IRS will not allow you to file a joint tax return if your marital status is not legally recognized by the state in which you reside. Some same-sex marriage proponents have been refusing to file individual tax returns as an act of civil disobedience. However, the current climate is that the IRS only accepts joint returns from people whose marriages are legalized by their state of residency.
CCH (http://tax.cchgroup.com/) reports:
Individual Not Married Under State Law Not Entitled to Joint Filing Status; Joint Return Never Filed in Response to Substitute Return
An individual was not entitled to claim joint filing status for years in which he did not file returns because he failed to file joint returns after substitute returns were prepared by the IRS. The individual was a prominent gay-rights activist in a committed same-sex relationship and refused to file returns on behalf of himself as a form of civil disobedience advocating equality for same-sex marriage.
The IRS prepared a substitute return for him, determining his filing status as single because, under the laws of his state of residency, same-sex marriage was not recognized, and he was, therefore, not married under Code Secs. 6013 and 7703. The individual was not subsequently entitled to joint filing status because he failed to file a joint return in response to the substitute return prepared by the IRS.
If your state recognizes same-sex marriage or if you are legally able to file a joint tax return, it is extremely important for you to understand the financial liabilities that come with a joint tax return. If your spouse is in trouble with the IRS (wage garnishments, bank levies, and other IRS penalties), his/her IRS debt will be transferable to you unless you can prove that you are an “Innocent Spouse.”
Tax Resolution Services can help you understand whether your taxes are eligible to be discharged in bankruptcy. If you have deliquent tax returns that could jeopardize your eligibility, get help from the specialized staff of tax attorneys, CPAs, EAs and tax professionals at TRS. Visit Tax Resolution Services for a free income tax relief consultation or call us at 866-IRS-PROBLEMS (1-866-477-7762).
Tags: failing to file federal tax return, failure to file, i need tax help, Innocent Spouse, IRS debt, IRS help, IRS problem solver, irs problems, IRS tax problems, Michael Rozbruch, tax attorney, wage garnishment
Posted in Filing Unfiled Returns and Replacing Substitute for Ret, IRS Tax Cases, Innocent Spouse, Seeking Professional Tax Help, Tax news and tips, Taxpayer Rights, tax help | 3 Comments »
Tuesday, July 21st, 2009
Every month I choose a very special Tax Client Of The Month. It’s my way of acknowledging good friends and saying “thanks” to those who support me and my business with referrals, word of mouth and repeat business.
This month’s Tax Client of the Month is Mr. John Gordon.
Imagine owing the IRS over $78,000. That’s what Mr. Gordon’s debt to the IRS was when he enlisted our help. Our negotiations and advocacy resulted in the IRS accepting a settlement of $22,000 via the federal government’s Offer In Compromise program.
Congratulations Mr. Gordon
You might be my next Tax Client of the Month too! Watch for your name here in an upcoming month.
Thanks for the Kind Words…
“My feelings about TRS are good. I was well informed through out the process. They were finally able to get the offer accepted for me. I saved over $65,000 on tax debt”.
-J. Gordon
Tax Resolution Services has a 90% tax relief success rate! Our team of IRS specialists and tax attorneys makes Tax Resolution Services the Nation’s leading tax negotiation and mediation firm. Tax relief can be yours too – with our long list of tax services - we find the tax solution that best fits you! 1-866-IRS-PROBLEMS (1-866-477-7762).
Tags: IRS specialists, Offer in Compromise, tax attorneys, Tax Client of the Month, tax negotiation, tax relief, tax relief success rate, tax resolution services, tax services, tax solution
Posted in IRS Times and Inquirer, Offers in Compromise, Tax Client of the Month | No Comments »
Monday, July 20th, 2009
In an effort to more aggressively pursue tax evaders who hide assets in overseas accounts, the US Department of Justice, UBS AG (Swiss Bank), and the Swiss government are working together to reveal the identities of US depositors who use secret offshore accounts.
In order to aid Obama’s latest efforts to bring out tax cheats who take advantage of offshore tax havens, the government of Switzerland filed a brief in the case asserting that it may confiscate from UBS any information identifying U.S. taxpayers hiding assets from the IRS in secret Swiss accounts.
CCH (http://tax.cchgroup.com) reports:
District Court Stays IRS Summons Enforcement Against Swiss Bank as Potential Settlement Looms
The U.S. Department of Justice (DOJ), UBS AG and the government of Switzerland, on July 12, filed a joint motion to stay proceedings concerning the identity of U.S. depositors that may be hiding assets offshore in secret accounts. Although no ruling was on the docket at press time, the DOJ announced through a subsequent July 13 media press release that the U.S. District Court for the Southern District of Florida granted the motion, allowing the parties until August 3 to work on a settlement. This announcement comes after the government of Switzerland filed an amicus brief in the case asserting that it may confiscate from UBS any information identifying U.S. taxpayers hiding assets from the IRS in secret Swiss accounts.
In the July 12 press release that coincided with the July 12 motion to stay, the DOJ stated that all filing parties agreed to require UBS to disclose the identities of a significant number of allegedly liable U.S. taxpayers if a resolution for the case could be reached out of court. Otherwise, with no alternative resolution, the DOJ said it will “continue to vigorously pursue enforcement of the summons through the court.”
DOJ Prosecution Continues
Despite this chance for settlement, the DOJ also filed a response on July 12 in opposition to the Swiss government’s threats to transfer the disputed information from UBS’s legal control. It argued that an act of state by the government of Switzerland would not interfere with the court’s enforcement of the summons. The DOJ also asserted that, should the court order UBS to comply with the summons and if UBS refuses to do so, it would ask the court to hold UBS in contempt and impose monetary sanctions. However, it emphasized that consideration of any punishment of UBS, as well as the Swiss government for its role in the dispute, before ruling on enforcement of the summons is premature.
“To the best of our knowledge the Swiss government has not yet taken such action, nor has it made clear what it means when it suggests that it will issue an order “taking effective control” of the UBS records,” the DOJ observed.
By Torie Cole, CCH News Staff
The IRS tax penalties for tax evaders are extremely severe. Improve your chances of penalty abatement by filing for quiet disclosure before the Amnesty Period deadline (September 22, 2009).
You may get help from our specialized staff of tax attorneys, CPAs, EAs and tax professionals at TRS. Visit Tax Resolution Services for a free income tax relief consultation or call us at 866-IRS-PROBLEMS (1-866-477-7762).
Tags: failing to file federal tax return, FALSE TAX RETURNS, Free Tax Consultation, i need tax help, IRS debt, IRS help, irs problems, Michael Rozbruch, tax attorney, tax audit, tax cheat, tax cheats, tax evasion, tax relief, tax resolution, tax resolution expert, tax settlement, unfiled tax returns
Posted in Penalty Abatement, Tax Debt Help News, Tax Resolution Options and Alternatives, Tax news and tips, tax help | 3 Comments »
Friday, July 17th, 2009
If you submit false documents in your tax returns, the IRS will impose severe tax penalties on you upon discovery. The money you save by trying to claim excess deductions (that are not entitled to you) is not worth the IRS trouble you will bring yourself.
CCH (http://tax.cchgroup.com) reports:
Individual Submitting False Documents Liable for Fraud Penalty
An individual who improperly claimed deductions for employee business expenses and who submitted false documents at trial was liable for the fraud penalty. The false documents were ostensibly from the taxpayer’s employer and stated that the employer did not have an expense reimbursement policy for employees. However, the IRS established that the employer did have a reimbursement policy and that the taxpayer had received reimbursement for his expenses. Thus, the IRS provided clear and convincing evidence that part of the taxpayer’s underpayments for the years at issue was due to fraud and the taxpayer failed to establish that any portion of the underpayments was not due to fraud.
If you find yourself at odds with the IRS, you are entitled to legal tax representation. 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: delinquent tax returns, failure to file, FALSE TAX RETURNS, filing false federal tax return, IRS audits, IRS debt, IRS help, IRS problem solver, irs problems, IRS tax problems, Michael Rozbruch
Posted in Tax Scams | 1 Comment »
Friday, July 17th, 2009
A California businessman pleaded guilty to not reporting $15 million in capital gains from the sale of real estate.
Luke D. Brugnara was in the business of acquiring and renting real estate in the San Francisco area and elsewhere. In February 1998, the IRS requested copies of Brugnara’s individual income tax returns for the years 1990 to 1996, in addition to copies of tax returns for Brugnara Corporation. Brugnara returned those notices to the IRS with a notation indicating that the tax returns were already filed. At about the same time, Brugnara applied for a gaming license to operate a casino after acquiring the Silver City Casino in Las Vegas.
The Nevada Gaming Control Board began an investigation as part of Brugnara’s application for a gaming license. The investigation included an inspection of his tax filings. During the check, investigators discovered Brugnara had not filed tax returns for the years 1991 to 1998.
Brugnara further admitted that in January 2000, he sold two properties in San Francisco and did not list the sales of these properties on his 2000 federal income tax return, which he knew he was required to provide on the Form 1040 for 2000.
As part of the plea agreement, Brugnara agreed to a prison term of between 18 and 24 months. He also agreed to pay a fine of $30,000 and restitution of $343,038.
Got IRS problems? Need tax help? Tax Resolution Services can help you – just like we’ve helped many before you find tax relief! From California to New York, our team of tax attorneys and IRS specialists has a tax relief success rate of 90% – second to none in the tax industry. Call us at 1-866-IRS-PROBLEMS for a free tax consultation.
Tags: failure to file taxes, Free Tax Consultation, Luke Brugnara, Silver City Casino, tax attorney, tax attorneys, tax cheat, tax evasion, tax fraud, tax help in california, tax industry, tax relief, tax relief success rate, tax resolution, tax resolution services
Posted in IRS Tax Cases, IRS Times and Inquirer | No Comments »
Tuesday, July 14th, 2009
An Arizona businessman has been sentenced to 12 months in federal prison for failure to file a federal income tax return.
Mario Alexander Pino, 38, a self-employed consultant in Scottsdale, was indicted by a federal grand jury in August 2008 and entered a guilty plea in March 2009 to the crime of willful failure to file his 2003 tax return. Pino was also ordered to serve one year of supervised release upon leaving prison.
Pino admitted that a reasonable estimate of his 2003 income was $602,933 and that his federal income tax liability on that income was approximately $192,244. In addition, Pino admitted as part of his guilty plea that he purposefully did not file his 2003 return by April 15, 2004, and that he knew that he had an obligation to do so. Despite not filing his return, Pino said that he used an unfiled 2003 return as supporting proof of his income in making applications for automobile and mortgage loans in 2004 and 2005.
Tax cheats beware! The government is watching you. Tax problems are common and Tax Resolution Services can help you find tax relief. We are staffed with tax attorneys and IRS specialists to help you solve your tax problems. Call us at 1-866-IRS-PROBLEMS (1-866-477-7762) for a free tax consultation. We can help you and your tax problems.
Tags: arizona tax consultation, failure to file income taxes, Free Tax Consultation, IRS specialist, solve tax problems, tax attorney, tax attorneys, tax cheat, tax evasion, tax relief, tax resolution, tax resolution services
Posted in IRS Tax Cases, IRS Times and Inquirer | No Comments »
Tuesday, July 14th, 2009
The IRS considers the assistance of filing false tax returns a severely criminal and punishable act. The IRS is able to utilize charts and summary data of national tax return statistics to determine the “normalcy” of a tax return. If your tax return is substantially higher than the national average, you will be a likely suspect for the IRS to investigate. If found guilty, you will be penalized by the IRS for filing fraudulent tax returns-whether it’s your own tax return or someone else’s that you’ve assisted with.
CCH (http://tax.cchgroup.com/) reports:
Sentence Imposed for Aiding and Assisting in Preparation of False Returns Reasonable
A sentence imposed on an individual convicted of aiding and assisting in the filing of false tax returns was reasonable. The sentence was within the sentencing guideline range, the trial court adequately considered the sentencing factors and it sufficiently explained the sentence to permit meaningful appellate review.
The admission of testimonial hearsay evidence, which relied on charts and summarizing data of national tax return statistics, did not constitute an abuse of discretion or violate the individual’s due process rights. The charts were required to be prepared by public law and were relevant because they showed that both the average charitable contribution of the tax returns prepared by the individual and the percentage of such returns that resulted in refunds was much higher than the national average. Finally, the individual’s personal tax returns were admissible under the public records exception to the hearsay rule.
If you find yourself in trouble with the IRS due to filing false tax returns, you can still get tax representation to help. It is extremely important to not incriminate yourself deeper by trying to resolve the situation without knowing all the rules and your rights. You can reach out to someone who has experience and expertise in dealing with IRS tax troubles to prove your innocence or abate your penalties.
You may get help from our specialized staff of tax attorneys, CPAs, EAs and tax professionals at TRS. Visit Tax Resolution Services for a free income tax relief consultation or call us at 866-IRS-PROBLEMS (1-866-477-7762).
Tags: delinquent tax returns, failing to file federal tax return, FALSE TAX RETURNS, filing false federal tax return, Free Tax Consultation, i need tax help, IRS audits, IRS help, irs problems, IRS tax problems, Michael Rozbruch, tax advice, tax attorney, tax cheat, tax evasion
Posted in Seeking Professional Tax Help, Taxpayer Advocate, tax help | 3 Comments »
Friday, July 10th, 2009
If you failed to file and pay taxes one year due to severe emotional or physical illness that disabled you from managing your finances, you may be able to escape paying the IRS tax penalties for that year–as long as you can prove the existence of a “reasonable cause” with strong evidence. If your illness incapacitated you from filing and paying taxes for multiple years, you may be eligible to not pay the IRS tax penalties for any of those years as long as you have strong evidence to support your case for each of the years.
Recently, a self-employed physician was found not liable to pay the tax penalties for one year during which she was emotionally ill and unable to manage her finances.
CCH (http://tax.cchgroup.com/) reports:
Physician Had Reasonable Cause for Failure to File and Pay Tax, Penalties Not Imposed
A self-employed physician who received significant income and incurred expenses for the tax years in issue was not liable for additions to tax for failure to file a return, failure to timely pay tax or failure to pay estimated taxes for one of the years in issue. She established through testimony that her failure to file and to pay tax was due to her illness. She testified that she stopped working because of emotional problems and that she was unable to manage her finances. The taxpayer did not establish reasonable cause for the other tax year, however because she provided no evidence that she suffered from any illness or incapacity when that return was due.
The burden of proof is on you as the taxpayer to prove to the IRS that you were unable to manage your finances due to an illness. It is important for you to build and make a strong case so that the IRS does not penalize you for your “reasonable cause” of not filing and paying taxes.
Tax Resolution Services can help defend you against harsh and unjustified IRS tax penalties. You may get help from our specialized staff of tax attorneys, CPAs, EAs and tax professionals at TRS. Visit Tax Resolution Services for a free income tax relief consultation or call us at 866-IRS-PROBLEMS (1-866-477-7762).
Tags: Back Taxes, delinquent tax returns, delinquent taxes, failing to file federal tax return, failure to file, Free Tax Consultation, IRS debt, irs problems, IRS tax audit, IRS tax debt, Michael Rozbruch, tax attorney, tax expert, tax help, tax resolution, tax resolution expert, tax resolution services, Tax Tips
Posted in Penalty Abatement, Seeking Professional Tax Help, Tax Debt Help News, Tax Relief News, Tax news and tips | No Comments »
Tuesday, July 7th, 2009
When taxpayers file for bankruptcy, some taxes and penalties may be discharged–giving people a chance of obtaining tax relief. When someone files for bankruptcy, the “automatic stay” stops taxing authorities from collection actions including seizures and wage garnishments. The extent of the tax relief from bankruptcy may depend on a few factors including: the kind of tax involved, the age of the tax, whether a return was filed, and the chapter of bankruptcy selected. When filed correctly, taxpayers who are bankrupt will be able to discharge some of their tax penalties.
However, if the IRS detects any unlawful tax conduct (such as deliberate tax evasion) during the review process for discharging tax liabilities, the discharge may be denied.
CCH (http://tax.cchgroup.com/) reports:
Tax Liabilities Nondischargeable in Bankruptcy; Debtor Willfully Attempted to Evade Payment of Taxes
A debtor’s pre-petition tax liabilities were not dischargeable in bankruptcy because he willfully attempted to evade or defeat paying his taxes. The record revealed the debtor had placed property in another person’s name in an attempt to conceal assets from the IRS, a pattern of failing to timely file tax returns and pay taxes and conduct that amounted to a willful attempt to evade or defeat payment of taxes.
The debtor’s failure to timely file his returns or make any attempt to pay past-due taxes when he had substantial income was a knowing and deliberate decision on his part. He could not avoid the exception to dischargeability by arguing that his failure was attributed to a mistake or inadvertence. He knew that he had a duty to file tax returns timely and pay taxes, but he intentionally failed to do so. Instead, he made extravagant purchases of non-essentials, gave monetary gifts to relatives, purchased a lavish home and spent generously on its renovation.
Tax Resolution Services can help you understand whether your taxes are eligible to be discharged in bankruptcy. If you have deliquent tax returns that could jeopardize your eligibility, get help from the specialized staff of tax attorneys, CPAs, EAs and tax professionals at TRS. Visit Tax Resolution Services for a free income tax relief consultation or call us at 866-IRS-PROBLEMS (1-866-477-7762).
Tags: Back Taxes, delinquent tax returns, delinquent taxes, failing to file federal tax return, FALSE TAX RETURNS, Free Tax Consultation, IRS audit, IRS debt, IRS debt resolution, IRS help, irs problems, IRS tax problems, Michael Rozbruch, tax relief, tax resolution, tax resolution expert, tax resolution services, Tax Tips
Posted in Discharging Taxes in Bankruptcy, Penalty Abatement, Seeking Professional Tax Help, Tax Debt Help News, Tax Relief News, Tax news and tips, tax help | 2 Comments »
Tuesday, July 7th, 2009
A Florida businessman was sentenced 22 years and six months in federal prison for, among other charges, for conspiring to commit wire fraud, obstructing an agency proceeding and impeding the IRS, and failing to remit payroll taxes.
Frank L. Amodeo, 48, of Orlando, pleaded guilty and was also ordered to forfeit more than $1 million seized from various accounts, three homes, several luxury automobiles, commercial real estate, a Lear Jet and his corporations. The court imposed a money judgment of approximately $181 million, which is amount of the stolen payroll tax funds.
According to court documents, Amodeo, and his co-conspirators controlled several companies. They conspired to absolve themselves and the companies they controlled of the responsibility for existing payroll tax liabilities and to divert payroll tax funds paid by clients to the companies that Amodeo and his co-conspirators controlled.
Wouldn’t you rather be my Tax Client of the Monthand not Mr. Amodeo facing 22+ years in federal prison? Tax evasion does not work! Tax Resolution Services offers a free tax consultation from one of our Tax Relief Consultants – simply fill out the online form! Tax Resolution Services can help you get your tax life in order!
Tags: failing to remit payroll taxes, Free Tax Consultation, guilty of tax evasion, impeding IRS, tax cheat, Tax Client of the Month, tax evasion, tax fraud, tax relief, tax relief consultant, tax resolution services, wire fraud
Posted in Back Taxes, Tax news and tips | 1 Comment »
Monday, July 6th, 2009
The owner of a California healthcare-staffing business was sentenced to 18 months in prison after filing tax returns that failed to report more than $850,000 in income.
Nwadinaume Uba, 57, who was also fine $5,000 and ordered to pay $258,741 in restitution, pleaded guilty to three counts of filing false tax returns.
According to the plea agreement, Uba owned and operated TLC Prostaffing and Evergreen Health Care Connection — staffing businesses for nursing care facilities located in San Jose, Calif. On her 2001, 2002 and 2003 personal income tax returns, Uba admitted that she omitted a significant amount of gross receipts on her Schedule C (Profit of Loss from Business).
Cheating on taxes is not the way the IRS game works! We can help you with your tax problems – just read our Tax Help Testimonials and look at our tax relief success rate – $0.13 on the dollar! Our tax attorneys and IRS specialists can help solve you tax problems today! Call Tax Resolution Services at 1-866-IRS-PROBLEMS (1-866-477-7762).
Tags: filing false federal tax return, omit information on schedule C, solve tax problem, tax attorney, tax cheat, tax evasion, tax help, tax problem solver, tax relief, tax relief success rate, tax resolution reviews, tax resolution services reviews
Posted in IRS Tax Cases, IRS Times and Inquirer | 1 Comment »
Thursday, July 2nd, 2009
Check out our latest TRS IRS tax help newsletter for tax tips, IRS insider news, and income tax relief advice.
Many of our clients who retain our tax help services are interested in knowing how their life will change and when they can expect these changes to happen. In our Roadmap to Tax Resolution, we help you undertsand the process leading up to your IRS resolution – from the Free Consultation to helping you achieve IRS compliance and negotiating your tax settlement.
It is also important to know how new tax laws aimed at curbing tax cheats could affect you. Find out what you need to know about new IRS enforcement initiatives to avoid IRS problems.
Resolving tax debt involves strategizing and re-positioning your finances to ensure as much success as possible. If you are in trouble with the IRS, our specialized staff of attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
Tags: Free Tax Consultation, i need tax help, income tax relief, IRS enforcement, IRS help, irs problems, IRS tax problems, Michael Rozbruch, tax advice, tax attorney, tax expert, tax resolution, tax resolution expert, tax resolution services, tax settlement, Tax Tips
Posted in Tax news and tips | No Comments »
Wednesday, July 1st, 2009
Swiss banks are shutting the accounts of Americans as the Internal Revenue Service accelerates the hunt for tax dodgers. The country’s biggest banks, UBS AG and Credit Suisse Group AG, have told Americans to move their money into specially created units registered in the U.S., or lose their accounts. Smaller private banks such as Geneva-based Mirabaud & Cie. are closing all accounts held by U.S. taxpayers.
After the American government’s legal battle to get UBS to disclose the owners’ names for 52,000 accounts in which Americans evaded taxes – the IRS announced a new Voluntary Disclosure process that offers leniency to taxpayers with unreported income relating to offshore transactions. Along with lower tax penalties, those who come forward, pay their taxes, and comply with the IRS are expected to avoid criminal prosecution.
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. But voluntary disclosure isn’t about how much you end up paying, it’s about being able to avoid jail time.
While the IRS has since increased pressure on Americans to disclose offshore accounts, Swiss banks must comply with U.S. tax rules and register with the Securities and Exchange Commission to accept a investment from a U.S. person.
According to Bloomberg:
While the banks declined to say how many people are affected, more than 5 million Americans live abroad, including about 30,000 in Switzerland, according to estimates from American Citizens Abroad in Geneva. Swiss banks must register with the Securities and Exchange Commission to provide services for those customers.
SEC registration means clients don’t enjoy the protection of Swiss banking secrecy laws, which make it a crime for money managers to disclose the names of clients without their consent. Switzerland said in March it would cooperate with international tax evasion probes after Zurich-based UBS admitted helping U.S. clients avoid taxes.
The IRS has since increased pressure on Americans to disclose offshore accounts as it seeks to recoup an estimated $50 billion in unpaid taxes. The agency set a deadline of Sept. 23 for taxpayers to declare all foreign accounts or face possible criminal prosecution that could result in as much as 10 years in prison and $500,000 in penalties.
Presumption of Guilt
U.S. citizens must file tax returns, report offshore accounts that contain more than $10,000 and pay tax on any income earned, no matter where they live. To take advantage of the amnesty program, taxpayers must file six years of returns, plus pay back taxes and a penalty, according to the IRS.
If you owe the IRS more than you can afford to pay, get help from the specialized staff of tax attorneys, CPAs, EAs and tax professionals at TRS. Visit Tax Resolution Services for a free income tax relief consultation or call us at 866-IRS-PROBLEMS (1-866-477-7762).
Tags: avoiding IRS penalties, Back Taxes, delinquent tax returns, IRS penalties, irs problems, IRS tax problems, Michael Rozbruch, offshort accounts, Swiss bank accounts, tax cheats, tax dodgers, tax evasion, tax expert, tax help, tax relief, tax resolution, tax resolution expert, tax resolution services, Voluntary Disclosure
Posted in Tax news and tips | 4 Comments »
