Accusations of tax evasion are very serious. Not only do they come with the social stigma associated with the word "evasion," wherein others may think you were attempting to game the system to get out of paying your fair share, but they also could result in serious criminal penalties like:
Lionel Messi is known throughout the world for his soccer abilities. The sports star has made millions off his success, making a profit from both his actual sporting ability as well as his image.
Digital currency, such as Bitcoin, has gained in popularity over recent years. As a result, the Internal Revenue Service (IRS) is scrambling to update tax rules and regulations to address this new form of currency. The federal agency was recently chastised twice by Congress for its handling of digital transactions. The concerns were voiced in two separate letters, sent within three weeks of each other.
In part one of this post, we took note of the unsuccessful appeal by soccer star Lionel Messi of his tax fraud conviction.His attempt to claim lack of knowledge of his father's use of shell companies to hide income didn't go over well with the appeals court. The court upheld Lionel Messi's 21-month conviction, even as it reduced his father's sentence to 15 months due to cooperation with authorities. What does the resolution of the Messi case tell us about tax compliance and enforcement, particularly regarding offshore accounts?
A year ago, the soccer star Lionel Messi was on the coveted cover of Sports Illustrated (SI). SI touted the success of his professional team and an upcoming match called the Copa America.What a difference a year makes. This week's news about Messi is that an appeals court has affirmed his conviction on tax fraud charges.In this two-part post, we will use a Q & A format to discuss what can U.S. taxpayers learn, as a cautionary tale, from the Messi case.
The Trust Fund Recovery Penalty (TFRP) is a powerful IRS tool for going after certain individuals who are considered personally responsible for a business's unpaid employment taxes.We discussed it in considerable detail in an article on which parties can be held responsible.In today's post, let's consider a Texas case that illustrates how this penalty can play out in practice.
More than 30 years have passed since Congress passed reform of the federal tax code in President Reagan's second term. The question of whether such reform can happen this year, during President Trump's first term, will be getting plenty of attention in the coming days. Somewhat beneath the radar, however, is a more specific set of issues regarding the review of regulations on so-called tax inversion transactions. In the last few years, numerous U.S. companies have used such transactions - involving the acquisition of a foreign partner and reincorporation abroad -to avoid U.S. income tax.
Every year, millions of people don't file required income tax returns.
The Criminal Investigation division of the IRS plays a key role in a complex regulatory scheme aimed at preventing not only tax evasion, but also money laundering, fraud and violations of the Bank Secrecy Act (BSA).
Government agencies around the globe are working together to find individuals that are hiding assets in an attempt to illegally reduce their tax obligations. A Justice Department statement recently provided an example of these collaborative efforts. It outlined how the Internal Revenue Service (IRS) is pushing a popular credit card company to provide the identity of account holders to the Dutch government.