California Tax Law Blog

St. Louis Man Sentenced For Failing to Disclose Multiple Foreign Accounts

St. Louis Man Sentenced For Failing to Disclose Multiple Foreign Accounts

| Jan 29 | FBAR Compliance and Disclosure, Tax Law Blog | No Comments
exterior of United States Courthouse

While most Americans will break their New Year’s resolutions within the first week of January, there is certainly one group of people who do not; IRS investigators. In an organization that is underfunded and understaffed, you better believe that a popular resolution of top brass at the Service is to continue their hunt for taxpayers that have failed to disclose their foreign bank account by filing an FBAR.

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Will filing back taxes expose me to additional tax problems?

Will filing back taxes expose me to additional tax problems?

| Jan 28 | Tax Law Blog | No Comments
1040 tax forms

US taxpayers who have failed to file tax returns, report taxable income or pay taxes where an obligation exist, generally already realize that they are subject to fines and penalties. Depending on the conduct and the circumstances present, the matter may even be referred for IRS criminal investigation. Many people who have failed to satisfy all of their tax obligations, or who have engaged in illegal activities such as filing false returns or income tax evasion, later regret their actions after the severity of the consequences becomes clear. That is, each failure to file a return where there was taxable income could be punished by up to a year in prison. Further mistakes while coming back into compliance can compound problems and may even lead to felony charges. In light of the potentially severe civil and criminal consequences, taxpayers who are not compliant with their tax obligations often fear that they cannot get back into the system without facing prosecution or exacerbating the issues they already face. Others are confused as to the steps and procedures that are likely to correct problems with unfiled taxes without subjecting the individual to criminal consequences.

Working with an experienced Tax Lawyer and CPA, such as David W. Klasing, can help you understand the extent of your tax compliance issues. After a meticulous review of your financial information, he can often craft a strategy that is likely to correct your problems regarding back taxes while minimizing criminal tax exposure.

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HSBC Raid Spells Trouble For U.S. Citizens Worldwide

HSBC Raid Spells Trouble For U.S. Citizens Worldwide

| Jan 15 | OVDI Program, Tax Law Blog | No Comments
hsbc building

It is no secret that the United States has begun to “drop the hammer” on those who are keeping undeclared foreign bank accounts. Although some would even say that the penalties for those that do not disclose the existence of their account abroad using the Offshore Voluntary Disclosure Program are draconian, one thing is certain: the days of stashing your money away in a foreign country with bank secrecy laws without severe domestic consequences are over. And it’s not just America that those with undeclared accounts must worry about. The rest of the world has taken up the fight against secret bank accounts and much like the United States, this issue isn’t showing any sign of letting up.

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Israel Promulgates New Banking Regulations Targeting U.S. Account Holders

Israel Promulgates New Banking Regulations Targeting U.S. Account Holders

| Jan 13 | OVDI Program, Tax Law Blog | No Comments
American flag and Israeli flag

Over the past 20 years, the world has seen a dramatic shift in the landscape of international banking. But even more recently, the overseas banking industry has seen changes of not only the type of clientele, but also the types of authorities who attempt to regulate it. As the future of financial services is shaped, several risks emerge for American taxpayers and steps should be taken to ensure that your financial and personal freedom is not swept away, like filing an FBAR.

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Changes in Swiss Law Mean Trouble for U.S. Account-Holders

Changes in Swiss Law Mean Trouble for U.S. Account-Holders

| Jan 08 | OVDI Program, Tax Law Blog | No Comments
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As we strive to provide our readers with the most up-to-date and pertinent news about changes in the law with regard to taxation, it is key to showcase changes in foreign legislation, in addition to actions by the U.S. government. An important change that we have recently become aware of involves a law that was once meant to protect the privacy of foreign bank account-holders in Switzerland. With the new changes detailed below, a U.S. taxpayer who has foreign accounts that haven’t yet been declared to the IRS are in grave danger of being the target of an IRS criminal investigation without even knowing it.

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New California Sales Tax Scam Puts California Small/Medium-sized Businesses under the Microscope

New California Sales Tax Scam Puts California Small/Medium-sized Businesses under the Microscope

| Jan 06 | California Sales Tax Audit Attorney, Tax Law Blog | No Comments
california-outline-in-front-of-50-dollar-bills

Many Californians have experienced the frustration of finding crumpled up receipts in their pockets or at the bottom of their purses. So many of the tiny transaction records are just that, tiny. Most receipts are not for big-ticket items and largely represent de minimus transactions that we make on a daily basis. Buying a cheeseburger, a pack of gum or even a bottle of water will generally yield a receipt. In many instances, a vendor may just hold on to the receipt and toss it in the trash. So would you be surprised to learn that requesting a record of your purchases in the form of a receipt could help prevent crime? The California Board of Equalization sure hopes that you are — and that you will take up the practice. Does your business need audit representation?

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The United States and Barbados Come to Terms on an IGA

The United States and Barbados Come to Terms on an IGA

| Dec 18 | OVDI Program, Tax Law Blog | No Comments
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When many taxpayers in the United States think about potential tax havens to stash away their money, there are generally a few countries that come to mind: Switzerland, the Cayman Islands, or even Luxembourg. But the United States doesn’t want to leave any stone unturned in its search for U.S. residents that have undeclared accounts overseas. Last month, the U.S. and Barbados officially entered into an Intergovernmental agreement that aims to create a level of transparency between the IRS and financial institutions in the eastern Caribbean. This development echoes a familiar warning to any taxpayers that have accounts that remain undisclosed to the IRS: come forward now by filing an FBAR, or face the consequences.

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Facebook, Twitter… E-Trak? How the IRS is Using Modern Technology to Catch Taxpayers

Facebook, Twitter… E-Trak? How the IRS is Using Modern Technology to Catch Taxpayers

| Dec 11 | OVDI Program, Tax Law Blog | No Comments
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It has been over 65 years since George Orwell’s 1984 introduced the idea of “big brother”, a notion that has become increasingly realistic with the explosion of technological innovation over the past 30 years. Another trending belief is that the government is behind in the times, from an information technology standpoint. What many Americans don’t know is that the latter may be not completely accurate. As it turns out, the IRS is using the same technology that social media sites such as Facebook and Twitter use, everyday. If you’ve been selected for an IRS tax audit, you should know about the new software the government is using to catch tax evasion.

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Massachusetts Dentist Pleads Guilty to Tax Evasion

Massachusetts Dentist Pleads Guilty to Tax Evasion

| Dec 09 | Criminal Tax Representation, Tax Law Blog | No Comments
teeth-money-bills

Paying taxes is often like pulling teeth. Most of us can’t stand doing it, yet we know that the repercussions from avoiding it can be far worse. A Massachusetts dentist likely knows this analogy much more than he would like to. Earlier this year, we brought you a story about a medical doctor that was involved in tax evasion and now it seems that dentistry will get its turn.

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Credit Suisse Sentenced, Ordered to Pay over $2 Billion

Credit Suisse Sentenced, Ordered to Pay over $2 Billion

| Dec 04 | FBAR Compliance and Disclosure, Tax Law Blog | No Comments
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It is commonly said that all good things must come to an end. That seems especially true for the operations of Swiss bank Credit Suisse AG, with regards to their business practice of assisting Americans avoid U.S. income tax. Now, the Swiss mega-bank will have to pay approximately $2.1 billion to federal and state agencies as part of a sentencing order handed down in a federal court, last week. If you fail to report your foreign accounts by filing an FBAR, you could be facing harsh financial penalties, too.

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