We who live in the Washington, D.C., area know it is a cosmopolitan place. There are many people who live throughout the District and suburban Maryland and Virginia who are new immigrants or first-generation citizens.
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.
As long as Congress is undertaking efforts to reform the U.S. tax code, why not repeal the Foreign Account Tax Compliance Act. That's the suggestion that's being made by the group American Citizens Abroad. The recommendation addressing this particular tax controversy was made in the form of a statement sent to Washington, D.C., this week to selected members of the House Ways and Means Committee.
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.
With the New Year underway we are all feeling the effects of the tax changes, even professional golfer Phil Mickelson. Over the weekend, he made a bold statement saying that the recent tax hikes on the rich may "force him to make drastic changes" implying that he might be leaving golf or his home in California. Because he is a public figure, this tax controversy was brought to the forefront of the evening news.
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.
Barely a week goes by without Lindsay Lohan making news. It would be one thing if sometimes the news was good, but that doesn't seem to be in the stars for the actress. Washington, D.C.-area readers may have heard that Lohan's latest concerns include struggles to pay off tax debts the Internal Revenue Service says she owes Uncle Sam.
There's a reason why the notion of an Internal Revenue Service audit tends to send shivers up the spine. They can be horrendous to undergo. It doesn't matter if you happen to live in the Washington, D.C., area or are on the other side of the country.
Some people in the Washington, DC, area probably breathe a sigh of relief after the statute of limitations passes for past tax liability. However, taxpayers must also realize when filing a return -- or failing to file a return for that matter -- that they are not necessarily off the hook for an audit.