We have made a point in recent months to highlight issues related to the U.S. government's deep focus on thwarting suspected tax evasion through the use of foreign accounts. Our efforts have attempted to provide some clarity about the conditions under which taxpayers must submit a Foreign Bank and Financial Account Report (FBAR) as part of their tax return filing practices. The purpose of those posts has been to help readers throughout the Washington, D.C, area avoid possible confrontations with the Internal Revenue Service.
It may be a common assumption that if someone is under scrutiny from the Internal Revenue Service they must be guilty of something. The reality is that most individuals are not conscious committers of tax crimes. Very often, they simply have made errors of omission in filing their returns, either because of an oversight or because they just didn't know what was required.
The tax information swapping network being created by FATCA, the Foreign Account Tax Compliance Act, took a big leap forward this week. The U.S. Treasury Department announced today that nearly 50 countries are now officially listed as "in compliance" with the law. More are expected to be added as the months of 2014 progress.
The federal law known as the Foreign Account Tax Compliance Act, or FATCA, doesn't take effect until July, but some bankers in the U.S. say it's already costing their industry some significant dollars. They also say the law threatens to hurt foreign investment in the country, so they're waging a legal fight to try to scrap at least one of FATCA's provisions.
Not all criminal investigations by the Internal Revenue Service wind up in criminal prosecution. The processes that the IRS follows for pursuing the case can involve many twists and turns. All of that can take time and each step may provide opportunities for limiting exposure to prosecutorial action. An experienced tax attorney's help can be crucial in protecting your interests.
Although there are many legal strategies that can be used to minimize tax obligations, every year many Washington, D.C., residents are accused of using unlawful methods to get out of paying taxes. Whether the Internal Revenue Service claims that a taxpayer made a mistake or took intentional actions to avoid taxes, the consequences can be harsh.
Black Friday has passed, as has the social outcry from many who accuse retailers of stripping Thanksgiving of its real meaning by starting the holiday shopping season early. Today, the limelight is on Cyber Monday.
A common question asked related to federal income tax filing is: How long should I hold on to receipts? It's a fair question, considering that if the Internal Revenue Service decides to investigate and order an audit, they likely will want to go back a ways. Receipts will help confirm that claims made in filed returns are legitimate and mitigate exposure to possible charges of tax evasion.
Back in the 1990s, the Beanie Baby craze swept the world. By some estimates the popularity of the under-stuffed bean-bag animals represents the epitome of a marketing strategy based on the concept of controlling a fad and thus increasing the value of the product.
Switzerland has long stood as the icon of banking confidentiality. As we've written about often in recent months, the United States has been particularly aggressive about going after Swiss banks in an effort to uncover unreported (and therefore untaxed) cash held by Americans.