[Updated April 2020] The IRS has identified 10,000 tax return preparers who they say make too many errors. Errors that ultimately cost their clients money. The IRS plans to visit approximately 2,500 of those preparers over the next several months. Many people use professional tax preparers for their returns. Wealthier individuals often use CPAs while […]
Rules For Expatriation? How About An Exit Tax!
As taxes continue to climb, more and more Americans are getting fed up. While its common to hear people in taverns and lunch counters across the country threaten to simply give up their citizenship, record numbers are actually doing so! Renouncing one’s citizenship and leaving the country is called expatriation. Of course many people who […]
$104 Million IRS Whistleblower Reward? Yup, Bank Secrecy is Dead!
Meet Bradley Birkenfeld. Bradley is a disgraced former Swiss banker that spent about 2 and a 1/2 years in prison for helping Americans evade taxes and hide their money in Swiss accounts. He is out of jail now and is getting a check from Uncle Sam for $104 million. What did he do to earn […]
"Rat Thy Neighbor" Goes Mainstream
by Brian Mahany The headline on the front page of the Weekend Investor section of today’s Wall Street Journal reads “Should You Blow the Whistle on Your Neighbor?” Apparently some 10,000 people have done just that according to the IRS. Turning in tax cheats in the hopes of getting a cash reward is nothing new. […]
America's Tax Gap – Who Is At Fault And What Should We Do About It
by Brian Mahany America’s tax gap – the difference between what the IRS collects and what it should collect. Estimates differ widely but everyone agrees that it is measured in the hundreds of billions of dollars annually. In the last comprehensive study, the IRS estimated it collects 84% of what is due each year. President […]
U.S. Tax Court Disallows 419A Plan, Upholds Penalties
In a recent U.S. Tax Court case, taxpayers suffered a double loss. The taxpayers, consisting of four couples, had purchased welfare benefit plans marketed by Benistar 419 Plan Services. Under the plan, Benistar provided preretirement life insurance to select employees of companies enrolled in the plan. Small employers like the plans because they allow pretax […]
Think Uncle Sam is Zealous About Tax Evasion Prosecution?
[Updated May 2020] It’s a rainy day in Macau, a former Portuguese island colony off the coast of China. My work as an asset protection and asset (fraud) recovery lawyer frequently takes me to interesting spots in the world. This week is no exception. Many nations are popular for Americans seeking to diversify their banking […]