Today was the extended filing deadline for U.S. citizens who lived abroad on the regular tax due date for 2014 returns. You still have until the end of June to file your FBARs, FATCA reports and Statements of Special Foreign Financial Assets, as appropriate, however, which brings us back to those controversial foreign income reports.
According to a quarterly securities filing, the IRS has been auditing 11 years of Microsoft's tax filings. This includes an ongoing audit of tax years 2007 through 2014 and a reopened audit of tax years 2004 through 2006, with the main issue being transfer pricing.
That wealthy people employ tax havens in efforts to protect their wealth is not particularly shocking. But in recent weeks, it's become a little clearer just how prevalent the use of the havens is and how interconnected they appear to be.
It's hardly as anticipated as the Cherry Blossom Festival here in Washington, D.C., but it is no less reliable in its arrival. We're talking about the Internal Revenue Services' annual "Dirty Dozen" list of potential tax scams.
There are a lot of tax-saving strategies that individuals can employ. Some work well. Others need to be examined really carefully before being tried to make sure the individual doesn't wind up proverbially shooting themselves in the foot.
We've written a bit in recent posts about the Internal Revenue Services efforts to close the loop on U.S. citizens they suspect of using foreign banks to hide wealth and income from tax liability. Swiss banks and the accounts they hold have garnered much of the limelight, but banks all around the world are under scrutiny as officials in Washington, D.C., try to bring some black to the red that washes over the treasury.
When businesses find themselves in tight financial spots, they often look for new streams of revenue. Washington does the same thing, though its main revenue stream -- taxing -- remains key.