A 42-year-old Connecticut woman pleaded guilty to tax evasion this week. Over the past six years, she had failed to pay income tax on more than half a million dollars.
Though former baseball star Darryl Strawberry has not played in the Major Leagues since 1999, he is still being paid for his services. That will come to an end when the IRS auctions off the annuity he receives from the New York Mets to help pay off a tax debt.
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 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 less income than they actually earned.
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.
Having to deal with the Internal Revenue Service on your own is probably something that you really don't relish. When you are dealing with the IRS because of a criminal investigation, the horror of dealing with the government tax agency alone is amplified. It is at that point that keeping your interests secured and knowing that you have someone working with you who understands the incredibly complex tax laws might help you to put your mind at ease. We want to remind readers in the Washington DC area about two basic points about the IRS investigation system that are vitally important for anyone facing investigation.
The government pursues tax revenues with the relentlessness of a pack of bloodhounds. Even an honest tax mistake can come back to haunt you years later in an audit, and the IRS can follow up on a willful omission or failure for even longer.
There is no doubt that tax evasion can be severely punished. If you are lucky, a tax evasion conviction will result in only fines and penalties. If you are unlikely, it could mean time behind bars.
It seems that just about anyone can get into tax trouble, including religious leaders. Late this July, a prominent Rabbi involved in a number of charitable organizations was convicted on charges of tax evasion.
If you are an American citizen, you must file a U.S. tax return, even if you live abroad and keep all your money overseas. If you are a U.S. citizen living in American, you must inform the IRS of any foreign accounts.