Archive | May, 2013

Voluntary Disclosure – Early History

May 28, 2013  |   Posted by :   |   Voluntary Disclosure   |   0 Comments

A tax crime is complete on the day the false return was filed. Between 1945 and 1952, the IRS had a “voluntary disclosure” policy under which a taxpayer who failed to file a return or declare his full income and pay the tax due could escape criminal prosecution through voluntary disclosure of the deficiency, (so […]

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IRS Eyes U.S. Accounts at Caribbean Bank

May 28, 2013  |   Posted by :   |   Tax Evasion,Voluntary Disclosure   |   0 Comments

“IRS eyes U.S. accounts at Caribbean bank” by Nanette Byrnes, Reuters, 4/30/13 U.S. Department of Justice said April 30, 2013 that a federal court has authorized the IRS to seek information on U.S. taxpayers who may have accounts at Canadian Imperial Bank of Commerce, First Caribbean International Bank (FCIB). The U.S. Justice Department said a […]

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IRS Treasury Department Circular 230 – Tax Advisors

May 20, 2013  |   Posted by :   |   Circular 230   |   0 Comments

Effective August 2011, the Treasury Department issued Circular No. 230 (Title 31 Code of Federal Regulations, Subtitle A, Part 10):  Regulations Governing Practice before the IRS.  Tax advisors must comply with the requirements (of Circular 230) or face IRS disbarment, censure or sanctions. Under Circular 230 the following rules apply: 1. Sec. 1021:  A practitioner […]

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International Tax Evasion and Money Laundering

May 16, 2013  |   Posted by :   |   Tax Evasion   |   0 Comments

International tax evasion has been the “Sport of Kings” for centuries.  Cloaked in secrecy, done surreptitiously, no one could ever prove it.  The “Super-rich” (i.e. the top 1%) get away with “tax cheating” and used their “tax cheating proceeds” to buy assets; e.g., real estate, boats, planes, cars, diamonds and art (all of which may […]

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Voluntary Disclosure – Yes or No?

May 15, 2013  |   Posted by :   |   Tax Evasion,Voluntary Disclosure   |   0 Comments

by Sanford Passman, Esq. and Gary S. Wolfe The Internal Revenue Service (“IRS”) Offshore Voluntary Disclosure Program (2012) is offered by the IRS to American taxpayers who may be in violation of U.S. tax laws for a myriad of reasons. Given the enormous sums of money which are spirited to offshore tax havens throughout the world, […]

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IRS Circular 230 – Tax Practitioner Fees

May 09, 2013  |   Posted by :   |   IRS Tax Audits   |   0 Comments

10.27 Fees (a) A tax practitioner may not charge an unconscionable fee in connection with any matter before the IRS. (b)(2) A tax practitioner may charge a contingent fee for services regarding IRS examination or challenge to: 1. Original Tax Return; 2. Amended Tax Return, or Claim for Refund (where the amended return or claim […]

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IRS Voluntary Disclosure Initiative – Post-UBS Agreement

May 08, 2013  |   Posted by :   |   Tax Evasion,Voluntary Disclosure   |   0 Comments

On 3/23/09, the IRS issued three memoranda regarding the voluntary disclosure of offshore accounts with the following key points: 1. The IRS was prioritizing audit examinations and investigations of abusive offshore transactions designed to evade the payment of U.S. taxes; 2. The Criminal Investigation Division (“CID”) of the IRS was made responsible for initially screening […]

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International Investors – U.S. Tax Planning

May 07, 2013  |   Posted by :   |   International Investors,Voluntary Disclosure   |   0 Comments

International investors who either move to the U.S. or invest in U.S. assets (with U.S. source income) face multiple U.S. tax issues: 1. U.S. Income Tax Residents, For those international investors who become U.S. income tax residents, under either the “Green Card Test”, or the “Substantial Presence Test” (i.e. they are in the U.S. 183 […]

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IRS Voluntary Disclosure – Foreign Tax Havens

In the 1990s, foreign tax havens greatly increased offshore tax evasions for U.S. taxpayers by use of undisclosed bank accounts, offshore credit/debit cards and money laundering. According to Senator Carl Levin” “Offshore tax evasion produces an estimated $100 billion in unpaid taxes each year. It’s long past time to collect these taxes and stop the […]

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IRS Tax Evasion – Offshore Accounts

Under Treasury Department Circular #230 (Rev. 8/11), Title 31 Code of Federal Regulations, Subject A, Part 10 (published June 3, 2011), Section 1021 requires a tax practitioner who knows that the client has not complied with U.S. revenue laws, or made an error or omission in a tax return, to promptly advise the client of […]

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