Posts Tagged ‘tax evasion’
Monday, September 21st, 2009
WASHINGTON ─ The Internal Revenue Service today announced a one-time extension of the deadline for special voluntary disclosures by taxpayers with unreported income from hidden offshore accounts. These taxpayers now have until Oct. 15, 2009. See http://tinyurl.com/mv9oub and NY Times http://tinyurl.com/nleozr
Under special provisions issued in March, taxpayers with these hidden accounts originally had until Sept. 23, 2009 to come forward. Those taxpayers who do not voluntarily disclose their hidden accounts by the new deadline face much harsher civil penalties, where applicable, and possible criminal prosecution.
IRS officials decided to extend this deadline after receiving repeated requests from tax practitioners and attorneys around the country following an influx of taxpayer requests. By extending the deadline for a short period of time, the IRS is providing relief for those taxpayers who had intended to come forward prior to the deadline, but faced logistical and administrative challenges in meeting it. The extension will allow tax preparers and attorneys the necessary time to interview and advise their backlog of taxpayers with these hidden accounts, and prepare the necessary paperwork to qualify for the special penalty provisions.
The IRS also announced that there will be no further extensions.
No legal opinion here.
Bill Lowrance
Tags: foreign bank accounts, Offshore Accounts, secret bank accounts, Swiss Accounts, tax evasion, tax havens
Posted in IRS, Offshore Accounts, Tax Attorney, Tax Crime, Tax Litigation, income tax | No Comments »
Monday, June 22nd, 2009
The U.S. Treasury Department announced on June 19 (see Treasury Press Releases) that Switzerland will agree to more exchange of financial information for tax enforcement purposes. Treasury Secretary Timothy Geithner said the new accord “will increase our ability to enforce our tax laws and will help bring an end to an era of offshore accounts and investments being used for tax evasion.”
Officials said the protocol would revise the existing US-Switzerland income tax treaty to allow for the exchange of information for income tax purposes “to the full extent permitted by Article 26 of the Organization for Economic Co-operation and Development (OECD) Model Income Tax Convention.”
Article 26 of the OECD Model Income Tax Convention is the “exchange of information” clause that most countries use as their “exchange of information” paragraph in International Tax Treaties. The change in the US–Swiss Tax Treaty means that the Switzerland definition of “tax fraud” will not control the information that may be given to the US authorities under the US - Swiss Tax Treaty. In the past, Switzerland would not give information to the US under a tax treaty request unless the information led to “tax fraud” as defined by the Swiss law. “Tax fraud” under Swiss law is very narrow and does not meet the US standard of “tax evasion” that most US tax treaty requests encompass.
Article 26 of the OECD Model Income Tax Convention states:
“The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention.”
Now, the question will become, after the US - Swiss change, what if “foreseeably relevant” in the Switzerland’s opinion. This may be a whole new area for litigation in Switzerland and the US for the collection of financial information from Switzerland.
Hey, no tax opinon here.
Bill Lowrance
Tags: foreign bank accounts, income tax, IRS, Offshore Accounts, secret bank accounts, Swiss Accounts, Switzerland, tax crimes, tax evasion
Posted in IRS, Offshore Accounts, Tax Crime, Tax Problems, income tax, tax news | No Comments »
Thursday, May 7th, 2009
Yesterday, May 6, 2009, the IRS posted on its website FAQs on more details of the settlement offer for unreported offshore income. The FAQs discuss the recently announced program for voluntary disclosure to the IRS of offshore bank accounts. The official Voluntary Disclosure can be found Click Here.
Those meeting the terms of the disclosure program will have to pay back-taxes and interest for six years, and pay either an accuracy or delinquency penalty on all six years. They will also pay a penalty of 20% of the amount in the foreign bank accounts in the year with the highest aggregate account or asset value, but will avoid criminal prosecution. The FAQs provide examples of what it would cost to take the settlement offer, spell out the potential civil and criminal penalties for those that don’t take the offer, and address the consequences of attempted “quiet disclosure” (i.e., filing amended returns). See FAQs Click Here.
If you have an unreported offshore bank account, it is important to consider the Voluntary Disclosure program. Coming forward and disclosing your information may save you a lot of money in penalties and, more importantly, may avoid criminal prosecution. In my practice, we offer legal expertise in this area along with accounting expertise. A former IRS International Revenue Agent works exclusively for me on my client’s cases. We analyze your entire situation including foreign transactions, amended returns, reporting requirements and meeting and negotiating with the IRS.
As always, my practice is client focused.
Bill Lowrance
Lowrance Law LLC
703 506 1600
No Legal Opinion Here
Tags: cirme, foreign bank accounts, Offshore, Offshore Accounts, secret bank accounts, Swiss Accounts, Switzerland, Tax Authorities, tax crimes, tax evasion, tax havens
Posted in Attorney, Controversy, IRS, IRS Audits, Offshore Accounts, Tax Attorney, Tax Crime, Tax Litigation, Tax Problems | No Comments »
Tuesday, January 6th, 2009
The Treasury Inspector General for Tax Administration (TIGTA) is the only government entity that conducts internal audits the IRS. Well, now you can read the most recent interesting report that covers their audit April 1, 2008 through September 30, 2008. The report is TIGTA’s semiannual report to Congress.
There are some “blockbuster” (technical tax term) statements and recommendations in the report.
TIGTA says that IRS must focus on closing the Tax Gap noting that IRS does not consistantly assess penalties or penalize taxpayers for making false statements when filing returns. TIGTA recommends that IRS expand its enforcement efforts. As I have predicted before, along with other tax experts, in the future IRS will be increasing enforcement efforts. In fact, Chief Counsel, IRS, is looking for more attorneys, see Click Here
TIGTA said: “Now, more than ever, the IRS must focus efforts to close the Tax Gap – the difference between the amount of tax that taxpayers should pay and the amount that is paid voluntarily and on time. In audits conducted over this reporting period, TIGTA found that the IRS has neglected to consistently assess penalties on non-compliant businesses and individuals. Additionally, TIGTA noted that the IRS generally does not penalize taxpayers for making false statements when filing official tax forms. The IRS must aggressively address the lack of taxpayer compliance and hold those in violation accountable for their actions.”
Read the whole report: Click Here
Bill Lowrance
Tax Attorney
Tags: cirme, collect tax, failure to pay, income tax, Office of Chief Counsel IRS, Tax, tax collection, tax crimes, tax evasion
Posted in Attorney, Collections, Controversy, IRS, IRS Audits, Tax Attorney, Tax Crime, Tax Liens, Tax Litigation, Tax Problems, Tax Research, Uncategorized, income tax | No Comments »
Monday, January 5th, 2009
Accounting Web posted a great article about famous tax cheats for 2008—sort of a looking back for tax cheaters.
The list: Wesley Snipes, Joe Francis (Girls Gone Wild), Nicholas Cage, Helio Castroneves and Paul Hogan (Crocodile) among others.
Read the whole story Click Here
Interesting story.
Bill Lowrance
Tags: cirme, failure to pay, income tax, IRS, Tax Crime, tax evasion
Posted in Attorney, Controversy, IRS, IRS Audits, Offshore Accounts, Tax Attorney, Tax Crime, Tax Problems, income tax | No Comments »
Tuesday, November 25th, 2008
Some US citizens who have secret, offshore Swiss bank accounts are hiring attorneys and going to the IRS to disclose the unreported accounts. All this activity stems from the prior indictment of a UBS bank executive for providing some US citizens with aggressive, advanced tax avoidance (evasion?) schemes. See prior post Click Here. Various news accounts report that over 20,000 US citizens have secret Swiss accounts at UBS. Of course, foreign accounts must be reported when you file your tax return. Not reporting the foreign accounts is a separate criminal tax violation.
A Reuters story reports that some USB clients are hiring tax lawyers to pursue amnesty using the IRS voluntary disclosure program. See Reuters Article
The IRS voluntary disclosure program is a little known method to disclose to the IRS any tax violations so that you can, hopefully, avoid criminal prosecution. See IRS Disclosure Announcement. The voluntary disclosure program is utililzed by tax attorneys in assiting clients before a criminal tax investigation starts. Just so you know, when a Special Agent of the IRS Criminal Investigation Division (CID) knocks on your door, you are in serious trouble. A “voluntary disclosure” does not automatically guarantee immunity from prosecution; however, a voluntary disclosure may result in prosecution not being recommended. This practice does not apply to taxpayers with illegal source income.
If you have one of the UBS accounts, find a good tax attorney and consider alternatives, including voluntary disclosure, to take before the CID agents come to your door.
Bill Lowrance
Your Virginia Tax Attorney
Tags: foreign bank accounts, IRS, Swiss Accounts, Tax Crime, tax evasion
Posted in Attorney, Controversy, IRS, Offshore Accounts, Tax Attorney, Tax Crime, Tax Problems | No Comments »
Tuesday, November 11th, 2008
A few months ago, the IRS and US Department of Justice filed a court action against Swiss bank, UBS, the world’s biggest bank to the rich, requesting US citizens secret bank account information. See Story Here. UBS has given some information to the Department of Justice and the IRS.
The IRS is looking for secret bank accounts held by US citizens who may be committing tax fraud or evasion. See See Reuters Article
After the IRS gets the information, they will identify and locate the US citizen having the account. Believe me, the IRS will come knocking on your door.
Call me.
Bill Lowrance
Your Virginia Tax Attorney
Tags: Department of Justice, IRS, secret bank accounts, Swiss Accounts, Switzerland, tax evasion
Posted in Attorney, Controversy, IRS, IRS Audits, Offshore Accounts, Tax Attorney, Tax Crime, Tax Problems | 2 Comments »
Thursday, October 23rd, 2008
An estimated $5 to $7 trillion dollars are held in offshore tax havens according to Secretary General Angel Gurría of the Organization Economic Cooperation and Development (OECD) headquartered in Paris Click Here OECD. Why is this important? The IRS is gearing up to increase enforcement against US taxpayers hiding money in offshore tax havens. The OECD is an international organization, based in Paris, with over 30 countries making up its membership. The US is a member of the OECD. The OECD has called for offshore tax havens to enter into agreements with countries to provide business, banking and financial information for tax purposes.
For many years the US and OECD member countries have targeted offshore tax havens to provide more information for tax purposes. Many countries entered into Tax Information Exchange Agreements (TIEAs)with the US and other OECD member countries. The US has TIEAs with many of the offshore tax haven countries. The OECD recently determined that the exchange of information programs for tax purposes are not fully successful Click OECD.
This brings our own IRS into the scene. The IRS has studied our international tax gap, meaning some US citizens may not be reporting offshore income that is taxable. IRS Study In fact, the IRS is planning more international tax enforcement. IRS International
Recently, the IRS has gotten names of US citizens having secret bank accounts in Switzerland. You can be sure that the IRS will be contacting these account owners to question them about the money in those accounts and whether any tax is due. See NY Times Article
When you or your client gets that visit from the IRS regarding the secret bank account in Switzerland, make sure you are prepared to smartly respond to the IRS. If you need more information, contact me.
Bill Lowrance
Tags: IRS, OECD, Offshore, tax crimes, tax evasion, tax havens
Posted in Controversy, IRS, IRS Audits, Offshore Accounts, Tax Attorney, Tax Crime, Tax Litigation, Tax Problems | No Comments »
Tuesday, October 14th, 2008
 Reuters reports, Reuters Article, that four former KMPG partners are going to trial on charges of allegedly cheating the government out of more than $1 billion through the use of improper tax shelters for hundreds of wealthy clients. The trial is scheduled this month.
The four men are charged with conspiring to evade taxes for more than 600 clients in a case that was touted as the largest criminal tax prosecution when it started in 2005 with 13 defendants.
The four men are charged with conspiring to evade taxes for more than 600 clients in a case that was touted as the largest criminal tax prosecution when it started in 2005 with 13 defendants, but is much smaller now.
Remember to keep clean with your taxes.
Bill Lowrance
Tags: crime, IRS, KMPG, tax evasion, trial
Posted in Controversy, IRS, IRS Audits, Tax Attorney, Tax Crime, Tax Litigation, Tax Problems | No Comments »
Friday, October 10th, 2008
 How much money do you have in your offshore bank account? That’s right. Some people attempt to hide money and other assets in foreign countries–out of the US and, supposedly, hidden from the IRS.
Many private investigators and attorneys search for hidden, offshore accounts. Sometimes the money or other assets are hidden from a spouse in preparation for a divorce. Sometimes money is shuffled offshore to evade taxes. Tax evasion is a federal crime, as we all know. It is even a felony, too.
Helio Castroneves, a U.S. resident and two-time winner of the Indianapolis 500, was recently indicted by a grand jury on charges of conspiracy to defraud the United States of income taxes and with six separate counts of income tax evasion for tax years 1999 through 2004.
His sister and business manager, Katiucia Castroneves of Miami, and his attorney, Alan R. Miller of Michigan were also indicted. The crime, using an offshore Panamanian shell corporation to fraudulently conceal income received from business deals. Helio Castroneves received $6,000,000 in a three year contract, kicked back $5.4 million, kept $600,000 and only reported $50,000 on his federal income tax returns. Well, with that the IRS and the US Justice Department got busy.
In another scheme, like one was not enough, the three defendants hid $5,000,000 in an offshore “deferred royalty plan.” It is a complicated scheme, legal under certain circumstances, but not legal in the way these three carried out the scheme. The bottom line is that Helio earned the $5,000,000, allegedly lied about his control over the money and did not report any of the money as income. Well, the IRS jumped on that one too.
Take note of the governments statement on this story:
“Taxpayers, small and large, famous and not famous, should be aware of the enormously severe consequences they face if they fraudulently use offshore accounts to hide income, including potentially going to prison, paying back all their taxes plus interest and penalties, and being branded a felon for the rest of their lives,” said Nathan J. Hochman, Assistant Attorney General of the Justice Department’s Tax Division.
“Whether one makes a living parking cars or racing them, paying taxes is a responsibility that everyone shares. Our tax laws apply equally to everyone, regardless of status, class and income, and the U.S. Attorney’s Office will prosecute these cases vigorously,” said U.S. Attorney Acosta.
Hey, read the whole story: Click Here
But, remember to play straight with income and paying taxes. You do not want the IRS and/or the US Justice Department involved in your life.
In my next post I will talk about Switzerland disclosing secret bank account information to the IRS and the US Department of Justice.
Bill Lowrance
Tags: cirme, fraud, Offshore Accounts, Tax Crime, tax evasion, Tax Litigation
Posted in Controversy, IRS, IRS Audits, Offshore Accounts, Tax Attorney, Tax Crime, Tax Litigation, Tax Problems | No Comments »
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