Archive | April, 2016

Attorney Sentenced to Jail for Failure to File and Pay Taxes

April 28, 2016  |   Posted by :   |   Tax Evasion,Unreported Income   |   0 Comments

Paul Stockler, a California licensed attorney was sentenced to 14 months in jail for failure to file and pay income tax. Instead, he spent the money on a lavish lifestyle and did not pay income taxes for three years (2006, 2008, 2009). Even lawyers must pay their taxes. For complete story see L.A. Times article, […]

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IRS Penalties – Reasonable Cause

April 20, 2016  |   Posted by :   |   Tax Evasion   |   0 Comments

Under Mortensen v. Commr., 440 F.3d 375, 385 (6th Cir. 2006), it was held that reasonable minds can differ over tax reporting, and under tax audits the IRS may disallow certain transactions. The U.S. Congress was concerned that taxpayers would participate in the “audit lottery” and take questionable positions on their tax returns in the […]

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IRS Civil/Criminal Penalties – Willfulness

April 14, 2016  |   Posted by :   |   Tax Evasion   |   0 Comments

Under the IRS rules, the willfulness element essential for a criminal tax evasion charge is defined as follows: (see IRS Criminal Tax Division/Office of Chief Counsel Tax Crimes Handbook) “Willfulness is the voluntary, intentional violation of a known, legal duty,”  (See: Cheek v. US 498 US 192, 200-201 (1991); US v. Pomponio 429 US 10,12 […]

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The IRS and Offshore Tax Evasion: The Panama Papers

April 12, 2016  |   Posted by :   |   Tax Evasion   |   0 Comments

The International Consortium of Investigative Journalists (“ICIJ”), recently began publishing a series of articles known as “The Panama Papers,” which consists of millions of leaked financial documents, a trove of information much larger than anything obtained by either Wikileaks or Edward Snowden in their prior disclosures. Hundreds of reporters and media organizations in over 70 […]

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IRS OVDP- Taxpayer Willfulness – Tax Evasion

April 07, 2016  |   Posted by :   |   Tax Evasion,Unreported Income   |   0 Comments

For criminal prosecution for federal tax evasion, taxpayer “willfulness” is required. In the case of Cheek v. US (1991) 498 US 192, the US Supreme Court stated that a taxpayer’s “good faith belief” that he was not required to file tax returns would negate taxpayer willfulness (i.e. taxpayer intent required for the crime of tax […]

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Wines By the Glass

April 07, 2016  |   Posted by :   |   Wine Exports   |   0 Comments

The California Wine business is currently experiencing “challenging times”. Central Valley growers in the San Joaquin Valley which represents 60% of California total grape crush are faced with excess supply on the low-end segment, lack of water, and more competition from overseas producers. Cheaper wines from New Zealand, Australia, Chile and Argentina have created a […]

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IRS v. the Estate of Michael Jackson: IRS Ups Claim to $731m

April 04, 2016  |   Posted by :   |   International Tax Planning   |   0 Comments

In the ongoing dispute of the Estate of Michael Jackson, in a previously unreported court filing the IRS has increased their original claim for tax and penalty from $702m to $731m. The IRS now values the Estate (and Lifetime Taxable Gifts) at $1.178B compared to the Estate Form 706 Valuation of $7m, a valuation difference […]

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