Taxpayers who have tried to hide some of their assets in overseas bank accounts currently have two options: voluntarily reveal these accounts to the IRS via the Offshore Voluntary Disclosure Program, or face prosecution. The first OVDP began in March 2009 as a way of giving taxpayers the chance to avoid legal problems, while also […]

As we approach the end of 2014, it is time to start thinking about federal income taxes. Though it is not necessarily a pleasant thing to consider, there is good news: time remains to take action to reduce your tax bill come 2015. A few things you can do now may result in significant tax […]

The Bill of Rights generally requires the government to acquire a search warrant before its agents can seize a person’s property. Though exceptions exist, few would suspect that federal authorities have the power to seize their bank accounts without the person being even suspected of a crime. Believe it or not, the IRS, along with […]

For various reasons, many people whom the IRS accuses of owing a hefty income tax bill choose not to contest the claim. Perhaps they do not dispute owing the money, or the size of the debt. Maybe, for personal reasons, it is not worthwhile to go through the time and expense of fighting the IRS. […]

There is no doubt that the Internal Revenue Service is an agency that wields a significant amount of power over us. The words “IRS audit” are enough to seriously frighten even the most law-abiding tax payer simply because innocent mistakes found in an audit are still a very serious matter. What is the IRS’s duty […]

The federal Foreign Account Tax Compliance Act, commonly known as FATCA, is a 2013 law that empowers the IRS to pursue taxpayers suspected of failing to disclose assets in foreign bank and investment accounts. The idea is that these individuals and businesses are defrauding the IRS by hiding these funds so that they can claim […]

An IRS audit can seem like it came out of the blue. “Why me?” is a common question for individuals and businesses facing federal scrutiny into their income tax returns. The IRS has several ways of selecting the tax returns it chooses to audit. These include: Computer scoring.Returns get screened by computer software called the […]

Even if he or she does his or her best to be careful, a business owner in Washington, D.C. may someday find themselves accused by the IRS of employment tax evasion. The agency is aggressive in pursuing businesses it accuses of failing to pay the appropriate amount of employment tax. According to the IRS, there […]

Getting a phone call from the IRS can be scary. If the person on the other end of the line tells you that you owe thousands in back income taxes and must pay now, it may seem like you have no choice. Don’t be fooled. The person you are talking to is not an IRS […]

You get the notice that no taxpayer wants to see: you are being audited by the IRS. This would be distressing news for anybody. It is understandable if the word “audit” conjures up visions of a long, complicated process with an expensive tax bill at the end. Maybe this happened because of a misunderstanding or […]