I recently visited the Big Biz Show with Russ and Sully on the lead up to April 16th to give “TaxMan Tax Tips” on ways taxpayers can to avoid IRS “land mines” and “red flags” this tax year. The current Obama administration has let its intentions be known that closing the $385 billion tax gap – (the difference between the amount of taxes reported and what the government actually collects)
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No doubt about it, the IRS is making headway in their efforts to bring Americans with unreported offshore accounts into tax compliance with the Foreign Account Tax Compliance Act (FATCA) and (FBAR) regulations. IRS enforcement and data sharing from European banks, has made it possible for the U.S. to gather account information on wealthy American clients; something just three years ago was impossible.
But an article in Forbes entitled Expats Lobby
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I was recently quoted in an article for CreditCards.com entitled Pros and Cons of Paying the IRS with a Credit Card where I encourage taxpayers to compare the costs of using their credit cards to pay their taxes versus a negotiated IRS installment agreement if they don’t have the case on hand. I enjoy lending my expertise to this conversation because all too often, I see very smart people rush
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The Chicago politician currently on the hot seat is Cook County Commissioner and former South Side alderman William Beavers. Beavers is facing indictment on tax fraud charges for keeping campaign funds and a county stipend without paying federal taxes on them. A Chicago Tribune article entitled William Beavers Indicted on Tax Fraud Charges reported on just how far Beavers is willing to go to protect his name and perceived political
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A major focus of the Obama Administration has been to reduce the “tax gap” (the difference between the amount of taxes reported and what the government actually collects). Nowhere has this become more obvious than with the President’s 2013 budget request.  A recent article in OMB Watch entitled Obama Proposes Exempting IRS from Budget Caps, reports on the Administration’s request to have some IRS enforcement spending be “excluded” from budget
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Some taxpayers have a tendency to overstate their income or expenses. The IRS “Dirty Dozen” Tax Scam # 6 – False and Inflated Income and Expenses makes this list annually simply because taxpayers still believe they can get away with it. What many don’t anticipate is that stepped-up IRS scrutiny of their flawed returns will yield not only IRS problems for them but also less money in their pockets as
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An article in Smart Money Magazine entitled Your Tax-Cheating Spouse May Cost You, considered the benefits of married couples filing joint tax returns. It also discussed what you may want to consider if your spouse was not on the level with “your” previous tax returns. Filing separately from your spouse could prevent IRS problems from occurring in the first place, but in each unique situation this may not be possible.
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Weekly, if not daily, there is news of yet another celebrity encountering IRS tax issues. While I stop to mention these stories as a cautionary tale of prevention, I am continually struck by how vulnerable the famous and newly wealthy really are with their finances, especially when it comes to paying their income taxes! I am beginning to think there should be a special course for celebrities to get their
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In a recent blog post called IRS Warns of Dirty Dozen Tax Scams, I covered in detail the top four most common and pervasive tax scams currently permeating the tax system. It’s important to prevent IRS tax issues from the start and covering each tax scam separately could go a long way to help consumers first recognize then steer clear of “IRS deals” and false promises that would end up
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An MSN article titled IRS Targets Retiree Tax Cheats points to a report from The Treasury Inspector General for Tax Inspection that is critical of how the IRS processes reported retirement income. The report mentions the inspector general’s recommendations for improvements to the process that would provide tax help to the growing number of taxpayers who inadvertently under-report retirement income and end up with hefty IRS penalties and fines.
The Treasury
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Business owners preparing for tax day, take note. A Reuters article entitled IRS Clarifies 1099-K Reporting for 2011 Taxes reported recent IRS clarification for how to report the new 1099-K forms on your 2011 tax returns.  The Housing Assistance Tax Act of 2008 created the Form 1099-K to help the IRS keep better track of electronic payments.  Because most business entities receive payments electronically, it’s more important than ever they
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Tax day is approaching and Americans like never before, are burdened with tough economic realities that include IRS tax debt they simply can’t pay. Some believe if they do nothing, these tax issues will go away.  Wrong!  Tax debt only grows larger and more stressful over time if not properly dealt with. By not filing a tax return or responding to IRS communication, you could be putting your assets in
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The U.S. Treasury Department announced this week a proposal for new regulations intended to make it easier for overseas banks to comply with Foreign Account Tax Compliance Act, or FATCA requirements.
An article in Reuters U.S. enlists 5 EU nations in offshore tax crackdown explains these proposals as the U.S. Government not only addressing concerns of foreign financial institutions regarding the Foreign Account Tax Compliance Act, or FATCA, but also the
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An article from TMZ titled Lil’ Kim Breaks the Million Dollar Tax Lien Mark reported on rapper Lil Kim and her current $1,026,862.42 IRS tax lien. Lil’ Kim appears to be no stranger to tax troubles as hers are well documented and stretch out over a ten year period. A spokesperson for Lil’ Kim said that she “hired professional attorneys to handle this matter” and that “she, along with her
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Two articles recently published in the Wall Street Journal demonstrate that current Swiss offshore collection tactics are working to bring Swiss banks and American account holders into U.S. tax compliance. The latest bank to feel the heat of enforcement efforts is the Julius Baer Group, the largest private bank in Switzerland.  Julius Baer, hoping to avoid U.S. indictment, is already preparing to incur stiff fines from U.S. authorities for hiding
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