The Internal Revenue Service announced changes to one of its limited-amnesty programs for U.S. taxpayers with undeclared offshore accounts. The revisions are an attempt to "streamline procedure," which was announced in June and could offer relief to taxpayers who weren't intentionally hiding money abroad.
Fort Worth Tax Law Blog
While the federal government may be trying to prevent U.S. corporations from relocating overseas for tax purposes, it has failed to stop companies that have already completed such deals from doing their own follow-on acquisitions of U.S. companies.
Amazon.com Inc. has become the latest major U.S. company to wind up in a formal probe conducted by European Union regulators regarding the legality of Luxembourg tax arrangements.
U.K. citizens can expect income tax cuts should Prime Minister David Cameron's Conservative party win the general election in May. Mr. Cameron said his party will cut income taxes over the next five-year parliamentary term, as long as it can continue its austerity drive to reduce the deficit.
There is a three-year statute of limitations for most tax matters. That may stretch out to six years if the income omission was significant. Failure to report a quarter of the income you received in a year could trigger the longer statute of limitations.
This is important for record keeping. The Internal Revenue Service recommends keeping records for a minimum of three years.
The statute of limitations came into play in the case against Texas business owners Sam Wyly and the estate of his deceased brother. At a sentencing, a judge assessed almost $400 million in fines related to the use of offshore trusts to avoid reporting requirements.
A report released by the Treasury Inspector General for Tax Administration, a bureau charged with the oversight of the Internal Revenue Service, suggests the IRS needs to do more to collect delinquent taxes from international taxpayers. The TIGTA study focused on collections from individuals and small businesses based abroad.
European Union regulators are expected to make their case as early as Monday as to why tax deals granted to Apple Inc. and Fiat SpA violated EU law. The announcement marks the next formal step in the regulator's push against alleged tax avoidance by multinationals.
U.S. federal authorities charged six Belize business executives with the creation of a scheme designed to aid Americans in the evasion of $500 million in taxes as well as dodging their reporting obligations under the Foreign Account Tax Compliance Act. Undercover law enforcement agents investigated the conspiracy by posing as dishonest clients.
The tax deadline that most worry about is April 15. However, if you filed for a six-month extension back in the spring, you only have several more days to file your 2013 tax return before the October 15 deadline.
Any taxes that you owed for the 2013 tax year were due by the April deadline even if you got an extension to file. The failure-to-pay penalty may have been running, but is only .5 percent of your unpaid tax bill each month.
It is important to file a return before the October deadline to avoid the higher failure-to-file penalty. This penalty is five percent of your unpaid tax bill each month you are late filing your tax return. Each of the penalties goes up to a maximum of 25 percent. Interest may also accrue on an unpaid tax bill at three percent.
Federal prosecutors faced a three-judge panel in an effort to replace the probation sentence of Beanie Babies founder Ty Warner with prison time after the billionaire was found guilty for failing to report more than $24 million to the Internal Revenue Service.