The Internal Revenue Service (IRS) may have a new focus during its next set of audits: the wealthy. The agency recently announced an initiative that focuses on taxpayers with high wealth.
Israeli model and television personality Bar Refaeli recently agreed to sign a plea bargain agreement to settle a long-standing tax dispute against the top model and her family. The terms of the agreement include 16 months imprisonment for the celebrity’s mother and nine months of community service for the model. The agreement also resulted in the model and her mother paying $1.5 million in fines and back taxes.
Tax return preparers may enter the profession for many reasons. Some enjoy the math and the puzzle that can come with filling out tax forms, others enjoy working with people to help them get the most of their tax returns. Although there are many legal ways to reduce one’s tax obligation, tax return preparers need to tread carefully to avoid crossing the line. A failure to abide by the rules and file truthful returns can result in allegations of criminal wrongdoing.
A tax haven is essentially an offshore financial institution with low or no taxes known for confidentiality. Individuals can use these financial institutions to set up businesses. Examples of areas that can meet this definition include the state of Delaware, the Cayman Islands, Dubai and the Netherlands.
Tax crimes may seem like a game of numbers. It may seem the Internal Revenue Service (IRS) will build their case based on whether or not the accused filed their tax returns, whether or not the listed income or deductions were in line with the reality of the accused’s financial situation.
The Internal Revenue Service (IRS) recently announced the arrest of a man charged with multiple counts of criminal tax fraud. The man was a tax return professional who allegedly committed these crimes during the course of his business. The agency claims the man had a reputation for getting clients high refunds - refunds the agency states were based on illegal claims within the clients’ filings designed to get the taxpayers an illegally inflated refund.
The United States Department of Justice’s (DOJ) Tax Division recently announced the sentencing of a Waco, Texas tax return professional to 27 months imprisonment for tax crimes. The government claims the accused inflated client’s deductions and claimed fraudulent education credits.
Cryptocurrency, also known as digital currency, is booming. This relatively new form of currency provides a unique issue for the Internal Revenue Service (IRS). But the IRS is learning. It is figuring out the best way to track down these accounts and hold taxpayers who may attempt to thwart their tax obligations accountable.
The Tax Division of the Department of Justice (DOJ) is attempting to increase its efficiency. One way it may attempt to reach this goal: increasing requests for a crime fraud exception.
Tax crimes can come with serious consequences. A recent case provides an example. The case involves government allegations an attorney committed tax evasion. After facing the allegations and reviewing the case, the attorney chose to agree to a plea deal.