Tax evasion Feed

Cryptocurrency continues to make inroads into our daily lives, including our taxes. On Sept. 1, Colorado officially became the first U.S. state to allow its residents to pay their state taxes in bitcoin. It's a pretty safe assumption that those Centennial State residents who pay state taxes with bitcoin also will be forthcoming at the federal level when it comes to their digital assets. But for those who are less transparent, the Internal Revenue Service is stepping up its efforts to know about and collect on crypto transactions. Legal action against hidden crypto: Last week, the IRS obtained a so-called... Read more →


Just more than a year ago, a Parkville, Missouri, man pleaded guilty to charges filed in two separate federal investigations. One was a case involving conspiracy to commit wire and major program fraud. The defendant admitted to his role in a $335 million scheme to defraud federal programs that award contracts to firms owned by minorities, veterans, and service-disabled veterans. The second charge was one of tax evasion to the tune of $615,847. The Missouri man confessed to claiming fraudulent business expenses on his 2016 tax year return and filing false returns from 2013 to 2016. Last Thursday, Sept. 22,... Read more →


One Martha's Vineyard vacationer had lots of questions when he was arrested for tax evasion following a minor traffic accident. The answer was a 'tax' typo. (Photo by Vadim Bogulov on Unsplash) Every taxpayer knows that a small mistake on a tax return could create big tax problems. A Philadelphia man found out a one-letter typo involving the word "tax" also carried a hefty price. Angus McCoubrey, who with his wife was vacationing last month on Martha's Vineyard, spent two nights in an island jail following a minor traffic accident. The jailing, however, wasn't for the fender bender. Instead, in... Read more →


Photo by Jill Burrow We freaked out a bit earlier this summer when we learned a neighbor whose backyard abuts ours was putting in a pool. The good news for us is that it's not a full-sized lap pool. It's one of the area's popular plunge pools, close to their house, with lots of space between it and our property line (and house). And the smaller size meant we didn't have to suffer through a prolonged construction. Despite our property proximity, we're mainly "hi, there" neighbors. Age and family differences — they're younger and have pre-school children — mean we... Read more →


Some come to the Cayman Islands for the beauty of Seven Mile Beach and other natural recreational areas. Others enjoy the Caribbean locale for financial and tax reasons. For more than a decade, wealthy U.S. tax evaders have taken advantage of a gaping tax law loophole that allows them to stash billions in foreign bank accounts, according to a recently released congressional report. Even though the 2010 Foreign Account Tax Compliance Act (FATCA) requires them to report any non-U.S. accounts and pay taxes on all income earned, too many non-taxpayers are using what the Senate Finance Committee report describes as... Read more →


Barclays Bank building in Madrid (Photo by M.Peinado from Alcalá de Henares, España - 001782 - Madrid, CC BY 2.0) It's not a crime to put your money into legitimate foreign financial institutions. However, if the amount meets a certain threshold, you are required to report that money to the U.S. government. When U.S. taxpayers ignore this process, officially known as filing of a Report of Foreign Bank and Financial Accounts, or FBAR, they can face costly consequences. That's the case in the FBAR collection complaint filed Aug. 15 by federal officials seeking judgment against the defendant who, per the... Read more →


Aaron Paul, as Jesse Pinkman (right), explaining legal representation needs to soon-to-be meth king Walter White, played by Bryan Cranston, in a scene from AMC's "Breaking Bad." As much as I loved that show and its "Better Call Saul" sequel, don't take Jesse's legal advice when it comes to tax troubles. Get honest and experienced professional help for any potentially criminal tax charges, like the ones noted below. Maybe it's because I'm still processing the end "Better Call Saul," the wonderful six-season exploration of television's best show about the evolution of, echoing the emphasis of Breaking Bad's Jesse Pinkman, a... Read more →


Photo by Nick Fewings on Unsplash One of the outcomes of an audit is that the Internal Revenue Service finds no reason to demand changes to a return. That's obviously a welcome result. None of us want to end up paying Uncle Sam more taxes, plus penalty and interest charges. But there's still is a cost. We've likely paid a tax professional to help us through the process. And as the old credit card ad says, our time is priceless. Some audits end up OK for filers: The generally good news, according to the Aug. 4 Kiplinger Tax Letter, is... Read more →


Photo by krakenimages on Unsplash Are you freaking out about the possibility that one of the new Internal Revenue Service enforcement agents will be coming for you? Most of us don't have to worry. The prime targets are the very wealthy. Why has the IRS been instructed to go after this filing demographic? One reason is because the richest taxpayers who try to hide taxable assets offer the biggest return when they are caught. Another reason is that they've been flying under the IRS audit radar for way too long. Dramatic drop in high wealth audits: A Government Accountability Office... Read more →


Tax legislation is much more than just changes to the Internal Revenue Code. It's also a political statement. In an election year, which is essentially every year nowadays, it's also a political weapon. Republicans, who currently are slightly outnumbered on Capitol Hill by Democrats, didn't waste any time latching on to the Senate's passage on Aug. 7 of the Inflation Reduction Act. Notably, they cited potential added Internal Revenue Service scrutiny of taxpayers, thanks to part of the bill. Well aware that every federal return filer, even the most honest among us, worries about the IRS taking a closer look... Read more →


Robert J. Brockman speaking at the dedication of Centre College's Young Hall on in October 2011. (YouTube screenshot) The Texas billionaire charged in what Internal Revenue Service investigators called the largest U.S. tax fraud case ever died late Aug. 5 at his Houston home. The 81-year-old Robert J. Brockman suffered from Parkinson’s disease and dementia. In May, a federal judge deemed the former CEO of Reynolds & Reynolds, a software company for auto dealerships, was competent to face charges that he evaded taxes on $2 billion of income. A February 2023 trial date was set. So what happens now to... Read more →


UPDATE, Sept. 27, 2022: A Spanish judge on today approved a trial for Colombian pop singer Shakira on charges of tax fraud. The date for the trial has yet to be set. Shakira and Spanish singing star Alejandro Sanz in 2008 met Spain's then-king Juan Carlos I. Today, Shakira's interactions with Spanish tax officials are not so friendly. (Photo by Movimiento ALAS - Flickr: ALAS_CUMBRE_64, CC BY 2.0) The rich and famous are different from you and me. But when it comes to taxes, sometimes they're the same. That's the case where they face the legal ramifications of some questionable... Read more →


Photo by David Boeke via Flickr Democratic leaders in the Senate are still aiming to vote next week on the Build Back Better bill rewrite by Senate Majority Leader Charles Schumer of New York and his intraparty frenemy Sen. Joe Manchin of West Virginia. UPDATE, Sunday, Aug. 7, 2022: The Senate approved the Inflation Reduction Act of 2022 today along a 50-51 party-line vote, with Vice President Kamala Harris casting the deciding vote. The House is expected to consider the measure on Friday, Aug. 12. The 725 revised pages of H.R. 5376, now dubbed the Inflation Reduction Act of 2022,... Read more →


HMRC warns United Kingdom citizens that tax avoidance is when people bend the rules of the tax system to try to pay less than they owe. The tax agency has created a guide to help spot tax avoidance schemes. Regardless of where we live, people essentially are the same, especially when it comes to taxes. Some of us tend to push the tax envelope, perhaps too much. That's what United Kingdom tax officials think. And they've had enough, especially in these difficult times. Tracking down tax cheats: Her Majesty's Revenue & Customs (HMRC), the UK's version of our Internal Revenue... Read more →


A fully functioning Internal Revenue Service is critical to the success of the United States. That assessment comes from IRS Commissioner Charles Rettig. It's not just a personal view, but part of Rettig's official opening message in the agency's just-released Strategic Plan for Fiscal Years 2022-2026. To get to that point, the report says the IRS' goal must be "putting the interests of our taxpayers first in everything we do." I know. Cynics are clicking away right now. The IRS hasn't had the best record here. To be the agency's devil's advocate — or, as a reader once described me,... Read more →


Charles Rettig was sworn in on Oct. 1, 2018, as IRS commissioner by then-Treasury Secretary Steven Mnuchin. He's now facing questions about audits of two former top FBI officials. The Internal Revenue Service has asked the Treasury Inspector General for Tax Administration (TIGTA) to look into what appear to be unusually timed audits of two former top FBI agents. Now the chairman of the Ways and Means Committee wants TIGTA to also look into the possible involvement of the IRS commissioner in the reportedly random, but intensive, National Research Program (NRP) audits of former FBI director James B. Comey and... Read more →


The Internal Revenue Service is under scrutiny again, this time for conducting unusual and intensive audits of two top FBI officials who were critical of Donald J. Trump. The IRS has asked the Treasury Inspector General for Tax Administration (TIGTA) to investigate how former FBI director James B. Comey and his deputy, Andrew G. McCabe, both were subjected to a rare, compliance research audit that is supposed to random. Congress also will get involved. Rep. Bill Pascrell (D-New Jersey) already, and repeatedly, has taken IRS Commissioner Charles Rettig to task for IRS shortfalls and missteps. In May, during a hearing... Read more →


Photo by EKATERINA BOLOVTSOVA Dealing with the normal ups and, too frequently of late, downs of the stock market is enough of a worry. But things can quickly go even further downhill when crooks use fake investments to defraud victims. Not surprisingly, those criminals often get greedier and try to cheat Uncle Sam, too. Such overreach, however, didn't work out well for one California man. Robert Louis Cirillo of Chino Hills pleaded guilty in federal court on Tuesday, June 28, to charges of defrauding investors of $3.2 million, as well as scamming an elderly man of hundreds of thousands of... Read more →


Photo by Andrea Piacquadio I'm later than usual posting today because the hubby and I finally cleaned a room that we've ignored for way too long. That meant it took longer than if we'd just dusted a bit more regularly. That's why I'm thinking of hiring a cleaning person. OK, I probably won't. I do think about it every time we do some major cleaning job, since I find housekeeping a total drag. Just ask the hubby. But I'm not really one for people I don't really know being in my house. Plus, if we do hire cleaning help, we... Read more →


The Internal Revenue Service's Whistleblower Office marked its 15th anniversary in fiscal year 2021 by making 179 awards to whistleblowers totaling more than $36 million. "Whistleblower claim numbers assigned in FY 2021 grew by 55% year over year, the second highest level of new claim numbers in the history of the program and claim closures also increased by 13%," wrote John Hinman, director of the IRS Whistleblower Office, in the introduction to the office's 2021 Annual Report to Congress, released on June 10. Those tips led to the IRS collecting in fiscal 2021 more than $245 million, which includes almost... Read more →