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Saturday, November 7th, 2009
Know what’s going on in your office! When an employee starts to embezzle money and evade taxes to line their pockets and offshore bank accounts, it often goes unnoticed by the company’s owners for months or years until a lot of money is stolen. If you own a business, being smart about who you hire is one thing, making sure they are doing their job accurately and honestly is another. Keep a watchful eye on your employees, especially those handling your taxes and payroll. If you feel something is wrong with your payroll or taxes, I highly recommend involving a tax professional immediately. A tax professional, tax attorney or IRS specialist can help you assess your situation and Tax Resolution Services offers a free tax consultation to get you started. Don’t let your employee cheat you out of money like this Illinois woman!
An Illinois woman faces up to 16 years in prison after pleading guilty to four counts of tax evasion, willful failure to file federal income tax returns, embezzlement from an employee benefit plan and failure to pay employment taxes.
The convictions are the result of the conduct of Mary R. Storer, 40, formerly of Wood River, Ill., after she was hired by Elk Heating and Cooling as their office manager in 2006. Storer’s responsibilities included answering the telephones, setting up customer appointments and handling accounts receivable and accounts payable. She was also in charge of payroll and filing and paying Elk Heating’s payroll taxes. Storer immediately began embezzling money from Elk Heating and gambled away almost all of the money. In all, she lost over $103,000 at the Alton Belle Casino in 2006. As part of the plea, she admitted she committed tax evasion, embezzled money from Elk Heating’s employee benefit plans and failed to pay over employment taxes of Elk Heating. She has agreed to pay restitution in the amount of $266,056 to Elk Heating.
Remember to ask the right questions when hiring a tax attorney or tax professional. 1-866-IRS-PROBLEMS is the number for tax relief from Tax Resolution Services.
Tags: embezzling from employee benefit plan, failure to file taxes, failure to pay employment taxes, free professional tax consultation, Free Tax Consultation, irs problems, IRS specialist, tax attorney, tax evasion, tax help, tax professional, tax relief, tax resolution services
Posted in Tax Problem FAQs | No Comments »
Friday, October 30th, 2009
Earlier this week, Democrats offered a bill that will strengthen the IRS’s ability to crack down on tax cheats who “hide” their full income by using foreign bank accounts.
Following the latest UBS deal that brought 7,500 Americans forward who had previously concealed their foreign bank accounts from the IRS, this new bill “would impose new reporting requirements on foreign financial institutions doing business in the United States, and on American advisers who help United States residents invest abroad. Foreign institutions that do not comply would be hit with a 30 percent withholding tax on income from their American assets”–according to Associated Press.
This bill is estimated to raise $8.5 billion over the next ten years–an effort by the IRS to cash in on some of the $100 billion per year the government loses to overseas tax evasion.
For American taxpayers and business executives who wish to hold their monies overseas, it’s important to recognize that these foreign banks have been given a choice: either they report their American account holders or they don’t get to access the American capital markets.
Gone are the days where the wealthy can “store” some money away without being discovered for unpaid taxes. The IRS is stepping up its game to heighten international compliance from offshore banks to give up information instead of protecting the privacy of their account holders.
If you have an overseas bank account, it is advisable for you to disclose your foreign funds to the IRS instead of gambling that you will never be discovered. Oftentimes, the IRS penalties on back taxes of foreign funds can equate to almost the full amount in these foreign bank accounts. Don’t wait another day, take control of your financial future by getting tax help now!
Read more about how the new Democratic bill will help strengthen IRS powers for delinquent tax collection.
If you have been caught in IRS crosshairs for not paying taxes on your overseas money, you can still get professional tax help to get a penalty abatement. It’s not too late to save your financial future. Call us today at 1-866-477-7762 for a free consultation or visit our website at www.taxresolution.com
Tags: delinquent taxes, IRS debt, Michael Rozbruch, offshore tax settlement, penalty abatement for offshore accounts, tax attorney, tax evasion, tax expert, tax help
Posted in Back Taxes, Penalty Abatement, Seeking Professional Tax Help | No Comments »
Thursday, October 29th, 2009
While the IRS is still busy sifting through some 7,500 names of Americans who disclosed their foreign bank accounts before the amnesty deadline earlier this month, Uncle Sam is already focusing its resources on catching other wealthy people who may have been evading taxes through other creative means aside from using foreign bank accounts.
This latest IRS reorganization program is lead by the “Global High Wealth Industry Group,” which will will launch “a small number” of audits of individuals with assets or income in the tens of millions of dollars.
According to the Wall Street Journal, this new unit of auditors hopes that by targeting the very wealthy, “it will help the tax agency decode partnerships, offshore trusts and other complex techniques used to hide income.”
Since an accurately filed 1040 form may not tell the entire story of someone wealthy with multiple sources of income, the IRS is taking this next step to help ensure that wealthy people are not evading taxes through some other means aside from foreign tax havens.
For those wealthy Americans who have been evading taxes creatively without attracting attention, it’s time to recognize the IRS’s iron determination to catch tax evaders by using whatever means necessary. The IRS has already penalized some taxpayers based on findings through investigative research on social media networks such as Facebook. Read more about how the IRS is using Facebook to find tax cheats.
If you are facing a severe IRS penalty or expecting an IRS audit, you can get professional tax help now to help you resolve your tax problems!
Note: If you have a foreign bank account and did not make the voluntary disclosure deadline on October 15th, you can still obtain tax help to reduce severe IRS penalties.
The important thing to remember is that the IRS will stop at nothing to collect unpaid back taxes, IRS penalties and accumulated interest from you. If you think that you may need professional tax help from a tax attorney, CPA, or certified tax resolution specialist, call us today at 1-866-477-7762 for a free consultation or visit our website at www.taxresolution.com
Tags: Back Taxes, delinquent taxes, foreign bank accounts, Global High Wealth Industry Group, IRS audit, IRS debt, IRS help, irs problems, Michael Rozbruch, tax attorney, tax evasion, tax evasion from wealthy, tax help, UBS
Posted in Back Taxes, Seeking Professional Tax Help | No Comments »
Thursday, October 29th, 2009
On Friday, the first American was prosecuted in a UBS tax case and sentenced to house arrest after admitting he concealed about $6 million in assets from the IRS.
Americans who missed the October 15th deadline for tax amnesty can still reduce severe IRS penalties for offshore accounts (including FBAR penalties that can amount to 200-300% of the asset value of the account!) Account holders need to get expert tax help as soon as possible to seek penalty abatement to reduce the impact of financial penalties and criminal implications.
According to the New York Times, a wealthy accountant who provided extensive help in the tax evasion inquiry of the Swiss bank UBS was sentenced to a year of house arrest Wednesday after admitting he concealed about $6 million in assets from the Internal Revenue Service.
Steven Michael Rubinstein, 55, was the first United States citizen charged in the investigation. Federal District Judge Marcia Cooke said his prosecution sent a message around the globe about the risks of hiding assets in offshore accounts — and that he deserved credit for helping federal investigators find more tax cheats and crooked bankers within UBS and other institutions in Switzerland and elsewhere.
“Thousands, if not millions, of taxpayers now know what the legal landscape is,” Judge Cooke said. “Now, we will not tolerate offshore tax evasion.”
Read the full article from NYTimes.com here: Accountant Sentenced to House Arrest in UBS Tax Case.
Our team of tax attorneys, tax resolution specialists and CPAs can help you mitigate the severe IRS penalties and criminal sanctions for offshore account holders. Don’t wait for IRS to come after you, we can help you resolve your IRS problems before it’s too late. Call us at 866-IRS-PROBLEMS (1-866-477-7762) or for a free consultation.
Tags: FBAR penalties, IRS penalties, offshore account holders, offshore accounts, Penalty Abatement, tax help, UBS tax case
Posted in IRS Tax Cases, Offshore Tax Settlements, Penalty Abatement, Seeking Professional Tax Help | No Comments »
Tuesday, October 27th, 2009
The IRS Voluntary Disclosure Program ended on October 15th. For U.S. taxpayers who have been hiding money in Zurich, expect indictments and harsh prison sentences from the IRS.
By Michael Rozbruch, Certified Tax Resolution Specialist
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For the more than 4,450 U.S. taxpayers who have bank accounts in Switzerland and haven’t told Uncle Sam, time’s up.
In an unprecedented settlement with the Swiss government and Swiss bank UBS, the Department of Justice and Internal Revenue Service were promised information on accounts in the country held by Americans. The U.S. government suspects more than 4,450 U.S. taxpayers, nearly all of them wealthy, use UBS to shield money from taxes.
Anticipating access to a list of names and accounts, the U.S. government offered amnesty to those who might be on that list. The offer: come forward by Sept. 23 and you will not face criminal prosecution.
But the deadline has come and gone, and for those who decided to play the odds, the gamble does not appear to be a good one.
Among other things, the Swiss government announced in September that it would appoint at least five new judges in addition to 72 already sitting judges to review appeals related to the Swiss government’s release of banking information. That means appeals are going to be expedited, giving the U.S. government access to the data in as timely a manner as the Swiss government can offer.
Steven Michael Rubinstein of Boca Raton, Fla., the first person to be charged as part of the U.S. government’s scrutiny of UBS, pleaded guilty to filing a false tax return in 2004. He faces up to three years in prison.
Meanwhile, Robert Moran, of Lighthouse Point, Fla., another UBS client, pleaded guilty in April to tax fraud. Moran was the second person to be caught in the government’s UBS investigation, and he also faces up to three years in prison.
Shortly after Moran pleaded guilty, U.S. Attorney Alex Acosta, who oversaw the prosecution, said in a statement: “If you are hiding income abroad, I suggest you approach us.”
But it may be too late. Now that the government’s Sept. 23 amnesty deadline has passed, U.S. taxpayers hiding behind the Swiss bank veil will receive little sympathy from the Department of Justice and IRS. In fact, for many of these U.S. taxpayers, they are likely to be facing years in federal prison for their actions.
As IRS Commissioner Doug Shulman said when he originally announced the UBS deal: “Once the Swiss government turns over names, all bets are off.”
For several years now, the IRS has been in one of the most aggressive tax-enforcement phases of its history. As the slumping economy and a rising national deficit have put on more pressure, the IRS is becoming even more aggressive.
Tax amnesty is no longer available for offshore accounts, however, professional tax help can help reduce severe IRS penalties. You can still seek amnesty even if you missed the IRS Voluntary Disclosure Program deadline but due to the severe penalites it is advised to have specialized tax representation by a tax attorney or IRS specialist. Tax Resolution Services offers a free tax consultation. Call us at 1-866-IRS-PROBLEMS or fill out our online free tax consultation form.
Michael Rozbruch is a Maryland CPA and a Certified Tax Resolution Specialist. You can contact him at866-477-7762 to obtain a free subscription to his newsletter titled The IRS Times & Inquirer.
Tags: amnesty for tax evasion, doug shulman, evading taxes with offshore account, Free Tax Consultation, hiding income abroad, hiding money offshore, IRS and offshore banking, irs problems, IRS specialist, IRS voluntary disclosure program, Michael Rozbruch, Offshore Banking, Penalty Abatement, specialized tax representation, swiss bank UBS, Swiss banks, tax attorneys, tax evasion through swiss banking, tax fraud, tax resolution services, Tax Resolution Specialist, US attorney Alex Acosta
Posted in IRS Times and Inquirer, IRS help, Seeking Professional Tax Help, Voluntary Disclosure, Working with the IRS | No Comments »
Thursday, October 22nd, 2009
More than 7,500 Americans rushed to take advantage of a the opportunity for tax amnesty offered through a special voluntary disclosure program for offshore accounts that ended last Thursday. But what can you do if you didn’t come forward to the IRS last week and still need to declare your offshore account?
If a U.S. taxpayer or U.S. resident was not able to file the voluntary disclosure memorandum by the October 15th filing deadline to qualify for tax amnesty, there is a heightened need for that account holder to get expert tax help as soon as possible.
All offshore reporting activity is being managed thru the IRS’s Criminal Investigation Division (CID). The Foreign Bank Account Reporting (FBAR) penalties for not filing and meeting the amnesty guidelines are severe:
- FBAR penalties can amount to 200-300% of the asset value of the account.
- If CID makes a referral to the U.S. Department of Justice for felony indictment, the criminal sanctions can be as much as 10 years in prison.
Depending on the magnitude of the penalties, it may be appropriate to seek redress through the penalty abatement process – this may be an effective approach to minimize or reduce the impact of these penalties.
Every year the government loses billions in tax revenues from offshore accounts held by Americans. According to The New York Times, The Obama administration is determined to smoke wealthy tax cheats out of their offshore hiding places. In recent months, dozens of formerly uncooperative sanctuaries, from Singapore to Liechtenstein, have rushed to sign on to new multinational agreements on information sharing. The Treasury Department is negotiating with several countries to establish common protocols to exchange information about foreign accounts. The Internal Revenue Service is opening offices in Beijing, Sydney and Panama and opening a new unit to investigate evasion by high-net-worth individuals, at home and overseas.
Due to the severity of the financial penalties and criminal implications, it is not in the account holders best interest to wait for the IRS to approach them. Even though the amnesty deadline has passed, the account holder should retain specialized tax representation now.
Effective representation means that your tax attorney, tax resolution specialist or CPA will take over all communications with the IRS, making the required disclosures, filing FBAR reports and amending tax returns typically for 2003 thru 2008.
Our team of tax attorneys, tax resolution specialists and CPAs can help you mitigate the severe IRS penalties and criminal sanctions for offshore account holders. Don’t wait for IRS to come after you, we can help you resolve your IRS problems before it’s too late. Call us at 866-IRS-PROBLEMS (1-866-477-7762) or for a free consultation.
Tags: Foreign Bank Account Reporting (FBAR), offshore accounts, Penalty Abatement, tax amnesty, tax attorney, tax help, Voluntary Disclosure
Posted in Offshore Tax Settlements, Penalty Abatement, Tax news and tips | 3 Comments »
Tuesday, October 13th, 2009
This Thursday’s deadline for Amnesty has many wealthy Americans with foreign bank accounts nervous and scrambling to get tax help from their tax attorneys. Don’t miss your chance of significantly reducing your likelihood of facing criminal prosecution–if you have foreign bank accounts (either with UBS or some other foreign bank) with funds that you have not paid taxes on, get tax help now before it’s too late.
The issue started this summer when the biggest Swiss bank, UBS, agreed to disclose some 4,500 names of American account holders who may be under suspicion for tax evasion. The agreement triggered some 3,000 US Citizens coming forward to the IRS this year as opposed to the 100 who came forward in 2008.
Bloomberg reports that tax attorneys are helping more people as they rush to meet deadline for voluntary disclosure. As a result, many tax attorneys have been facing overwhelming workloads from wealthy Americans who fear criminal prosecution–movie producers, music moguls, and business owners. Some Southern California tax attorneys have stopped accepting new clients because their workload is too heavy.
However, it’s not only the wealthy tax evaders who are facing the looming October 15th amnesty deadline; many innocent immigrants who still have funds in foreign bank accounts are also nervous about not having paid taxes on their overseas money. Many of these immigrants who may have inherited money in foreign bank accounts do not realize that their international assets are taxable in the United States.
According to the LA Times, “L.A. is very ethnically diverse, so we have a lot of those folks,” Malik said. “I’d say it’s the minority who knew there was something shady about having a foreign bank account.”
There are also those out there who have money in banks other than UBS who are debating whether to gamble the chances that the IRS will discover their names. There is no telling which bank other than UBS will cooperate with the IRS on revealing tax evaders–it is not a good idea to take your chances with your international money, as oftentimes the IRS penalties will equate to the majority of your funds in those accounts–not to mention criminal charges on top of the IRS penalties.
If you have funds in a foreign bank account that you have not paid taxes on, this is the time for you to get your tax problems resolved by professional tax attorney. While you may not be able to escape all IRS penalties for your unpaid taxes, you will be able to substantially reduce your IRS punishment with a penalty abatement or IRS payment plan–all of which are better than going to jail for criminal tax evasion charges.
Read the full LA Times story about how the Thursday deadline affects foreign bank account holders.
Tax Resolution Services has helped thousands of people just like you who have felt overwhelmed by tax problems–get tax help now before October 15th to ensure that you have done all you can to reduce your tax penalties. Call today at 1-866-477-7762 for a free consultation to get your name on the amnesty side of IRS before they find your name and put you under their criminal side.
Tags: Amnesty deadline October 15th, Back Taxes, FBAR, foreign bank accounts, IRS payment plan, IRS penalties, Penalty Abatement, reducing IRS penalties, tax attorney, tax relief, tax resolution, UBS
Posted in Back Taxes, Expert Help From Tax Attorney, IRS help, Penalty Abatement, Seeking Professional Tax Help, Tax news and tips, Voluntary Disclosure | No Comments »
Monday, October 12th, 2009
Tax fraud is committed every day. One criminal act that seems particularly popular, that I’ve blogged about again and again, is filing false federal tax returns. People do it for various reasons – I suspect that two of the top reasons would be to avoid paying taxes or to get a substantial tax return from the IRS, lining their pockets – and offshore bank accounts – with money. But what good is money when you are in prison? Wonder how this Miami woman would answer that question?!
A Miami woman was sentenced to 60 months in prison after being convicted by a jury on tax fraud charges.
Maritza Valiente, 41, was convicted on all 11 counts against her relating to a tax fraud scheme that Valiente and others committed in 1999 and 2000. Valiente and three co-defendants were initially indicted in 2004, but Valiente was not located until 2008.
According to trial evidence, Valiente and her co-conspirators created false W-2s claiming wages and withholdings from fiscal year 1999 in the names of bogus employees of Valiente’s company, United Mortgage Financing. They used the false W-2s and other information to prepare fraudulent tax returns claiming refunds for the fictitious employees. Then, in early 2000, Valiente and her co-conspirators filed the false tax returns with the IRS and obtained refund-anticipation loan checks in the names of the fictitious employees. In sum, more than 30 false tax returns were filed with the IRS as part of the scheme, causing the IRS to issue more than $100,000 in fraudulent refunds.
Filing false federal tax returns is not a good idea, as illustrated above. Some people may do it because they are desperate to get their taxes filed by the April 15th due date. Did you know that the IRS accepts delinquent tax returns? No matter how late, you have a right to file your taxes - and if you need help with a late tax filing Tax Resolution Services team of tax attorneys and IRS specialists can help you. Better late and honest, than never or dishonest! Free tax consultation available.
Tags: delinquent tax return, filing false federal tax returns, filing fraudulent tax returns, filing late tax returns, fraudulent IRS refunds, fraudulent tax returns, Free Tax Consultation, IRS specialist, late tax filing, tax attorney, tax fraud, tax help by tax attorney, tax help by tax professionals, tax resolution services, tax scheme
Posted in IRS Tax Cases, IRS Times and Inquirer | No Comments »
Monday, September 28th, 2009
The end is near for U.S. taxpayers who are using the world’s most famous tax haven to shield assets and avoid paying Uncle Sam his due. If you have an offshore account where you’ve been evading taxes, you should be worried! Did you know that the IRS is offering an extension to the voluntary disclosure program to come clean about undeclared income?
By Michael Rozbruch
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In one of the latest — and among the highest stakes — battles for the U.S. government in its war on tax cheats, the Internal Revenue Service won an agreement that will give it an unprecedented amount of information on account holders at Swiss bank UBS.
Under the agreement, the IRS will submit a treaty request to the Swiss government describing the accounts for which it is requesting information. The Swiss government will then direct UBS to initiate procedures to turn over information on as many as 4,500 accounts to the IRS.
The IRS will receive information on accounts of various amounts and types, including bank-only accounts, custody accounts in which securities or other investment assets were held and offshore company nominee accounts through which an individual indirectly held beneficial ownership in the accounts.
The agreement is a huge blow to the Swiss economy, which has long depended on its financial services industries and bank secrecy laws.
For the U.S. government, the agreement creates one of the hottest tip sheets in the tax-compliance game.
“We’re finding out about financial institutions that facilitated tax evasion and we’re going to pursue them,” IRS Commissioner Michael Schulman said in an interview with Bloomberg Television. “We’re finding out about other intermediaries, like law firms and others who promoted tax evasion.”
Information provided to the IRS from the Swiss will be examined for all potential civil and criminal tax violations. The IRS will assess any additional tax, interest and a number of applicable penalties. This includes the penalty for the willful failure to file a report of Foreign Bank and Financial Accounts (FBAR). This penalty can be up to 50 percent of the value of the account for each year an FBAR was not filed.
The U.S. agreement with the Swiss government follows an admission by UBS that it aided Americans in evading taxes. In fact, two UBS bankers and four U.S. clients were prosecuted after UBS banker-turned- whistleblower Bradley Birkenfeld, 44, helped investigators probe $20 billion in taxpayer assets hidden overseas.
In many ways, the U.S-Swiss agreement to disclose information on UBS accountholders is a symbolic victory, since the Swiss banking veil was largely considered impenetrable. The IRS has demonstrated that isn’t true, and in doing so, the tax-collecting agency shows that no tax haven in the world is completely safe.
In fact, U.S. tax cheats are finding fewer and fewer places to hide. Recently, the IRS won agreements with U.S. credit card companies that disclosed to the government card members whose accounts were linked to overseas bank accounts — a formerly common tax evasion tactic.
Whatever tax avoidance or evasion scheme you’re considering, you may want to rethink picking a fight with the heavyweight IRS.
The IRS has generously extended the deadline for voluntary disclosure to October 15th, giving taxpayers an extra few weeks to come clean about undeclared income, specifically from overseas accounts. I blogged about the voluntary disclosure recently where one can reduce their chances of criminal prosecution. If you are ready to come forward, you need the help of a tax professional and that is what we are at Tax Resolution Services.
Michael Rozbruch is a Maryland CPA and a Certified Tax Resolution Specialist. You can contact him at 866-477-7762 to obtain a free subscription to his newsletter titled The IRS Times & Inquirer.
Tags: delinquent returns, filing late tax return, Offshore Banking, professional tax help, swiss bank working with IRS, tax attorney, tax cheat, tax evasion, tax professional, tax relief, tax resolution services, Tax Resolution Specialist, tax shelters, tax specialist, UBS and IRS, US and Swiss Bank Account Agreement, Voluntary Disclosure, Working with the IRS
Posted in IRS Tax Cases, IRS Times and Inquirer, Seeking Professional Tax Help, Taxpayer Rights, Unfiled Returns - Delinquent Tax Returns, Voluntary Disclosure, Working with the IRS | No Comments »
Wednesday, September 23rd, 2009
There been lots of tax news and buzz about the extension of the tax amnesty period for offshore account holders. But something that has not been in the spotlight quite as much is how you will need expert tax help to take advantage of this so-called leniency from the IRS.
Brian Compton, my associate and the President of Tax Resolution Services, was recently interviewed by Rob Lever from the international publication AFP (Agence France Presse/ French Press Agency).
Read full article here: U.S. Offshore Tax Amnesty Deadline Prompts Rush
Basically, for anyone with money abroad it’s important to act now before the amnesty period ends to avoid huge penalties and even criminal prosecution. For instance, if you have $1 million dollars offshore – that will equal close to $400,000 in IRS taxes, penalties and interest if you come forward now. If you don’t take advantage of the special leniency the IRS is offering, then penalties can jump to as much as $2.3 million on a $1 million asset
Additionally, you could get 10 years in prison for failing to file the appropriate FBAR reports for foreign accounts. That’s how seriously the IRS takes this. While anyone who steps forward before the amnesty period ends can significantly reduce their chances of criminal prosecution, they must also be prepared to follow rigid procedures to ensure they get favorable treatment from the IRS. In other words, coming forward before the IRS even under the offshore amnesty program is not something you do by yourself; you will need help from a firm with years of experience successfully representing clients before the IRS.
We handle voluntary disclosures for offshore accounts and can help you resolve your IRS tax problems . Contact our team of expert tax attorneys, CPA, and tax resolution specialists for a free consultation. Call us at 866-IRS-PROBLEMS (1-866-477-7762) or visit our website at www.TaxResolution.com
Tags: brian compton, Foreign Bank and Financial Accounts (FBAR), offshore accounts, tax amnesty, tax help, Voluntary Disclosure
Posted in Seeking Professional Tax Help, Tax news and tips, Voluntary Disclosure, tax help | 1 Comment »
Monday, September 21st, 2009
In an effort to keep the doors open for foreign bank account holders wary of criminal prosecution, the IRS has extended the deadline for voluntary disclosure from September 23rd to October 15th, giving taxpayers an extra 2.5 weeks to come clean about their undeclared income.
If you have undeclared funds in foreign bank accounts, now is the time to act in order to reduce your chances of criminal prosecution and to work out an affordable tax resolution payment plan.
More than 3,000 taxpayers have already come forward this year, compared to only 88 from last year. Much of this can be attributed to the original deadline of Wednesday, September 23rd. However, due to the large amount phone calls from taxpayers and tax attorneys asking for more time, the IRS decided to give everyone a break.
According to Laura Saunders of the Wall Street Journal, “This year’s program has received outsize attention thanks to a dispute between the U.S. and Swiss governments over the identities of U.S. taxpayers holding at least $10 billion in some 52,000 secret accounts at UBS. In a comprehensive settlement in August, the Swiss government agreed to identify at least 4,450 more UBS account holders and possibly many from other banks. Attorneys say they have been inundated with calls from clients. Recently many more have decided to confess, say attorneys. Bryan Skarlatos, an attorney with Kostelanetz & Fink in New York, says his firm is handling more than 250 disclosures.”
Anyone who steps forward will significantly reduce their chances of criminal prosecution. Many of the people who have confessed to undeclared income will face IRS penalties and interests on their back taxes up to 40% to 60% of their total account balance (this does not include legal and accounting fees). You can save a lot of money by being proactive about disclosing your foreign funds–call a tax attorney for tax help if you are unsure of how to proceed in your best interest.
For those who think that they may be able to get away undetected is taking a larger-than-life gamble. It’s not worth the IRS tax trouble to try and escape under the radar. Contact a professional tax attorney or tax resolution specialist today if you believe that you owe back taxes on your foreign accounts.
It’s important for foreign bank account holders to take advantage of this deadline extension to sort out their tax problems and come forward before UBS reveals their names to the IRS. Act now before it’s too late!
Learn more about your legal FBAR obligations.
I help people resolve their tax problems every day–big or small. Contact our team of experts for a free consultation. Call us at 866-IRS-PROBLEMS (1-866-477-7762) or visit our website at www.TaxResolution.com
Tags: amnesty period, Back Taxes, delinquent taxes, FBAR, IRS debt, Michael Rozbruch, substitute for return, tax attorney, tax evasion, tax relief, tax resolution
Posted in Back Taxes, IRS help, Tax news and tips | No Comments »
Thursday, September 17th, 2009
As the IRS Amnesty Period is drawing quickly to its expiration date next Wednesday, September 23rd, 2009, overseas account holders must act quickly to voluntarily disclose their funds abroad to reduce their chances of criminal prosecution.
Over Labor Day weekend, a member of the wealthy and privileged elite, Finn M. W. Caspersen, took his own life in the Shelter Harbor Golf Club in Rhode Island. Authorities believed that Caspersen may have owed up to $100 million in back taxes and IRS penalties, and may have even faced prison time.
Whether Caspersen really owed the government that much money or not is not clear, but it is unfortunate when someone chooses to end their life over IRS tax problems. IRS debt can seem overwhelming and can sometimes seem like the end of the world–I’d like to remind you that for every IRS tax problem, there is a IRS tax solution. You are entitled to professional tax help–don’t let your tax problems cripple your financial future.
According to the NYTimes.com, “The I.R.S. learned that Mr. Caspersen held an account at LGT, the private bank controlled with Liechtenstein’s royal family. Liechtenstein pledged last December to disclose the names of some wealthy Americans with bank accounts there, but it was unclear if Mr. Caspersen’s name was among them or how the I.R.S. learned of any account in his name. According to the person familiar with the investigation, federal authorities recently placed tax liens on the personal trusts of Mr. Caspersen’s four sons.”
The latest IRS crackdown on the use of offshore bank accounts by wealthy Americans led to the UBS deal where the big Swiss bank divulged the names of nearly 300 of its American clients in February and agreed to hand over several thousand more last month.
For those who owe back taxes on their money abroad, it’s important to act now before the Amnesty Period ends next Wednesday. By partaking in voluntary disclosure, you will pay a significantly less amount of IRS penalties than what you will owe if you wait to be caught. For instance, if you have one million dollars offshore – that will equal to about $400,000 in IRS penalties in interest. If you don’t do the voluntary disclosure the penalties jump to 2.3 million on a $1 million asset. Additionally, not voluntarily disclosing your foreign bank account will expose you to possibly severe criminal charges. (If you participate in voluntary disclosure before September 23rd, your chances for criminal prosecution will be greatly reduced.)
It is unwise to take your chances of not getting caught by sitting this wave out, voluntary disclosure is a good way for those who owe back taxes for their foreign bank accounts to seek IRS penalty relief. Act now before the September 23rd deadline to save your financial future before it’s too late!
Tax Resolution Services works with clients on voluntary disclosures – so if you owe back taxes or interest/penalties on offshore accounts, we can help. Don’t wait for IRS to come after you, we can help you resolve your IRS problems before it’s too late. Can contact our team of experts for a free consultation. Call us at 866-IRS-PROBLEMS (1-866-477-7762) or visit our website at www.TaxResolution.com
Tags: Back Taxes, delinquent tax returns, delinquent taxes, failure to file, FBAR, Finn M. W. Caspersen, Free Tax Consultation, IRS debt, irs problems, Michael Rozbruch, overseas bank account holders, tax attorney, tax evasion, tax expert, tax help, tax resolution, UBS deal
Posted in Back Taxes, Tax news and tips, tax help | 1 Comment »
Tuesday, August 25th, 2009
It’s official–UBS, the Swiss Banking Giant has reached a deal with the US Government and the Swiss Government to release around 4,450 names of American account holders suspected of tax evasion.
The US Government estimates there to be $18 billion hidden in these offshore accounts–giving the IRS plenty reason to scrutinize and audit both the innocent and guilty in the upcoming months.
If you have a UBS account and have not paid your taxes, you can still decrease the severity of your charges by participating in voluntary disclosure. Currently, the IRS offers an Amnesty Program for tax evaders who come forward before their names are disclosed by UBS. (The deadline for this program is September 23rd, 2009).
If you come forward to the IRS before UBS does, the IRS will drop all criminal charges in exchange of you paying all back taxes plus penalties and interest. Considering this exchange could make the difference between jail time and an affordable payment plan, it is worthwhile for tax evaders who have significant unpaid taxes.
Taxpayers are required by law to disclose all income from domestic and foreign sources–all of which are taxable. Therefore, if you are going through an IRS audit or have found yourself in trouble with the IRS, it is best to get professional tax help from an experienced tax attorney, CPA, or certified tax resolution specialist.
Guilty or innocent, it’s crucial for taxpayers with offshore bank accounts to be prepared for severe IRS scrutiny. Get professional tax help now before it’s too late. In most cases, finding the most qualified tax lawyer or tax resolution specialist can significantly reduce your IRS penalties.
Read more on how you can pick the best tax attorney to help you fight the IRS.
Tax Resolution Services is the only national tax resolution firm certified by the ASTPS to negotiate tax settlements with the IRS. We are a nationwide professional tax solution company with a team of tax attorneys and IRS specialists who can help you find tax relief. Free tax consultation – sign up on our website or call us at 866-IRS-PROBLEMS (866-477-7762).
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Posted in IRS Question Corner, Penalty Abatement, Seeking Professional Tax Help, Tax news and tips, Voluntary Disclosure | 1 Comment »
Monday, August 24th, 2009
Hope everyone had a great weekend! CNBC.com reporter Mark Koba quoted me in a recent article about last week’s agreement by Swiss bank UBS to name US account holders. This is being seen as a watershed, leaving many wealthy Americans with foreign accounts scrambling to figure out what to do
Anyone who has not checked the Report of Foreign Bank and Financial Accounts (FBAR) box on Schedule B of form 1040 and/or has deposited monies into these foreign accounts without paying federal income taxes (earned income) on them should be nervous about being targeted by the IRS in their crackdown on foreign accounts.
However, people in this situation can still strike a deal with the IRS in exchange for full voluntary disclosure. We do this all the time for our clients – we go straight to the IRS instead of the IRS seeking out our client. The voluntary disclosure program offers immediate relief because the IRS agrees not to criminally prosecute taxpayers who pay all back taxes plus interest and penalties. But in order to take advantage of this immediate relief, taxpayers must come forward before their names are turned over to the IRS.
And remember that a tax attorney or tax resolution specialist can help you resolve IRS tax problems if your offshore account comes under scrutiny by the IRS. Contact us today for a free tax relief consultation to see if you qualify for a voluntary disclosure settlement.
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Posted in Seeking Professional Tax Help, Tax news and tips, Voluntary Disclosure, Working with the IRS | No Comments »
Friday, August 21st, 2009
As Swiss bank UBS and the Swiss government consider reneging on a deal to turn over 52,000 names of U.S. clients, Justice Department warns criminal prosecution may be next step
By Michael Rozbruch
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For those who follow tax compliance news, February was a big month.
That’s when the U.S. Department of Justice announced a deal with Swiss bank UBS.
The U.S. government agreed to waive criminal prosecution — federal prosecutors suspected the Swiss bank helped American clients evade as much as $300 million a year in taxes from 2002 to 2007 — if UBS would provide the U.S. government with the names of its 52,000 U.S. clients.
The government, of course, suspects these 52,000 U.S. clients are using their Swiss bank account to hide money and avoid income taxes. For wealthy Americans, that’s been a well-laid plan, since Swiss banks are known to offer absolute privacy.
Until now. Well, maybe.
Following the unprecedented agreement, the Swiss have hemmed and hawed, saying an order to release client names would violate Swiss banking law.
A Miami judge asked federal prosecutors what they would do if UBS reneged on the deal. Their response: UBS bank officials would face criminal prosecution.
This is quickly becoming something of an international banking incident. But what does it means for you, an American taxpayer?
A lot, in fact.
Take what John A. DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division, said earlier this year about obtaining UBS’s records: “It is time for those who are trying to hide from the IRS to rethink their actions. The Department of Justice is committed to do all that it can to aid the IRS in locating those who would seek to hide behind secret accounts and in holding them accountable under the federal tax laws.”
What DiCicco means, it’s safe to say, is this: The IRS has now mustered its entire strength to dismantle the mechanisms that in the past have facilitated tax evasion.
The highest profile of these mechanisms are Swiss banks, which have made fortunes over the last century operating with a success model that promised to protect money without asking questions or telling secrets. From Americans trying to hide money to dictators trying to steal it, Swiss banks offered the best option.
So to combat tax evasion, the IRS has targeted everything from credit cards to banks located overseas, and in the past year, the federal government has been remarkably successful at obtaining records, creating a sort of tip sheet of those who may be cheating Uncle Sam.
For American taxpayers such as you, the writing is on the wall: Time is short. That’s because, if you’ve used a traditional method of evading taxes such as overseas banks, the IRS will soon find out, if it hasn’t already.
Uncle Sam won’t back down from tax cheats. Ask the secretive Swiss.
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If your offshore account comes under scrutiny from the IRS and you need tax help, Tax Resolution Services can advise you on how to avoid IRS problems. They can also help you with the voluntary disclosure process and filing any back taxes (delinquent taxes) that need to be taken care of.
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-IRS-PROBLEMS (866-477-7762) to obtain a free subscription to his newsletter titled The IRS Times & Inquirer or read stories from the newsletter on our blog.
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Posted in Back Taxes, IRS Tax Cases, IRS Times and Inquirer, Unfiled Returns - Delinquent Tax Returns, Voluntary Disclosure, Working with the IRS | No Comments »
