The IRS announced it has a new automated way to raise a substantial amount of taxes from US taxpayers who fail to file US tax returns. The new announcement from the Treasury Inspector General for Tax Administration says enforcement is aggressively increasing and has new focus at the IRS targeting...
The Future for Independent Contractors in California
There has been an historic change in how employees or independent contractors are classified, especially here in California. California employers with 1099 workers face audits from every direction. The US Department of Labor (DOL) recently added 700 auditors who will be entirely focused upon auditing businesses in search of misclassified...
IRS Form 5471 Carries Heavy Penalties and Consequences
If you have any ownership position in an offshore or foreign corporation it is important to understand your reporting responsibilities to the IRS. If you own 10% or more of any foreign corporation's voting authority, you are required to accurately and transparently complete IRS Form 5471 and attach it to your federal return...
IRS Audit Targets Based upon the Discrimination Function Amidst Other Factors
How does the IRS select which returns to audit each year? What is the IRS Discrimination Function System (DIF) and what additional factors increase your likelihood for an IRS audit? What are some of the primary IRS audit targets and what should you do if you are contacted for an...
IRS Disclosed More than $10 Billion Collected from FBAR Compliance
This week John Koskinen, IRS Commissioner, claimed success based upon FATCA driven voluntary disclosures by US taxapayers. The IRS disclosed more than $10 Billion collected from FBAR compliance through the Offshore Voluntary Disclosure Program or OVDP and the Streamlined Domestic Offshore Procedures. “The IRS has passed several major milestones in...
IRS FBAR Audits and Prosecutions Have Begun
The IRS FBAR audits and prosecutions have begun and the clock is ticking for those who have yet to come into full FBAR compliance with the IRS. A Connecticut man recently plead guilty to the offshore scheme he used to conceal income from the IRS. The man, a duty-free importer...
The IRS Heavily Fines Frivolous Tax Excuses
United States taxpayers have attempted to use many excuses for the non-payment or under-payment of taxes. US taxpayers need to understand the power of the IRS and the agency's ability to levy heavy penalties, seize assets, garnish wages and even freeze bank accounts and confiscate funds. The IRS heavily fines...
Texas Case Shows a Piece of IRS Offshore Willful Analysis Strategy
Earlier this year the IRS, with the help of a US Bankruptcy Judge, successfully pierced a complex strategy by two Texas brothers Sam and Charles Wyly. The Wyly brothers were accused by the IRS of tax fraud related to the funneling of money and assets to offshore banks through a comprehensive series...
What does a Professional Foreign National Working in San Diego Need to Know about the IRS?
Have you come into the San Diego area on an H1-B visa in order to work in one of our high tech or research companies? What does a professional foreign national working in San Diego need to know about the IRS, offshore account and asset reporting and FBAR compliance? Many...