Tax evasion Feed

The 2016 Republican National Convention started today. So did the latest round of stories about what the GOP must do to make Donald J. Trump, its expected presidential nominee, more electable. Richard Hatch (far right, front row), winner of the first "Survivor" show in 2000, makes his case as a contestant in 2011 on Donald Trump's "Celebrity Apprentice." Hatch was fired by The Donald, but some suggest Hatch's "Survivor" strategy could help Trump win the presidency. There's the typical approach of moving toward the political center. That the path that's been taken over the years by both Democratic and Republican... Read more →


Sports fans tend to be, well, fanatic. To many, it's what a player does during the game, not his or her off-field antics that matter. Moment of the Champions League final with FC Barcelona's Leo Messi, left, going against Patrice Evra of Juventus at Olympiastadion in Berlin on June 6, 2015. (Photo by Biser Todorov via Wikimedia Commons) That kind of no-questions-asked support was what the Barcelona football -- or soccer, as most Americans call the sport -- team was counting on in the wake of its star player's tax evasion conviction. Public outreach, tax backlash: Last week after Lionel... Read more →


If you have substantial funds in foreign bank accounts or investments, you may need to file a Form 114, Report of Foreign Bank and Financial Accounts. And you need to do so by next Wednesday, June 30. That's a firm deadline. No filing extension is allowed. Because of the no-give for this filing, the due date earns this week's By the Numbers honor. FBAR triggers: The filing is known as the FBAR, which is a sort-of scrambled acronym for the form's name. Although the Internal Revenue Service is intensely interested in tracking potentially taxable money wherever in the world it's... Read more →


Go big or go home. That's a common mantra down here in Texas. A variation applied this week in a federal bankruptcy courtroom in Big D. The judge there ruled that a former Lone Star billionaire's big attempt to shelter money offshore means he owes the Internal Revenue Service a big bill. Sam Wyly, a once legendary Dallas businessman, philanthropist and one of the wealthiest men in the country (shown at right on the October 2015 cover of D CEO magazine), was found on May 10 to have defrauded the IRS by shuffling assets among a network of offshore trusts... Read more →


A little more than a month ago, inquiring tax eyes were focused on Panama. Specifically, folks were curious about a law firm in that Central American nation that allegedly helps the wealthy stash cash in global accounts that are out of reach of their nations' tax collectors. ICIJ has produced a video, The Panama Papers: Victims of Offshore, that shows what the organization says are the unseen victims behind the email chains, invoices and documents that make up the Panama Papers and the shadowy offshore industry. A couple of U.S. states, Nevada and Wyoming, were named as international tax haven... Read more →


Brothels are legal in New South Wales, Australia, so officials there had no problem when Jamelie Lahood ran the Stiletto brothel for more than a decade until 2014. A room at Stiletto, a high-end brothel in Sydney, Australia. Photo from the bordello's Instagram account. However, Australian tax officials do take issue with the nearly $2 million ($1.5 million in U.S. currency) they say Lahood owes from her earnings as boss of the self-described "world's finest short stay boutique hotel and Sydney brothel." The money Lahood made operating Stiletto between 2008 and 2014 placed her among the top 0.1 percent of... Read more →


Last week, millions of last-minute filers got their returns to the Internal Revenue Service. As of April 22, the federal tax collector had 136.5 million returns in hand. The tax gap is kind of like the break in the old Florida Keys bridge: Something's missing (Photo by Ewen Robert via Flickr CC) The number of Americans who completed their annual tax duties by this year's April deadline(s) was slightly ahead of the 2015 filing pace. Before the year is over (and the 13+ million of us on extension get our returns in by Oct. 17), the IRS expects total filings... Read more →


To be, or not to be, a tax cheat, that is the question that William Shakespeare might have asked himself. It seems he answered, "To be." One version of Hamlet's soliloquy from season one of the brilliant Canadian comedy/drama "Slings and Arrows." Click image to watch the full clip on YouTube. In commemorating the 400th anniversary of The Bard's death today, we rightly celebrate his literary genius. But he also was a mere mortal. And as such, according to research from Aberystwyth University in the United Kingdom, Shakespeare was prosecuted for evading taxes and for hoarding grain during a famine... Read more →


Diane L. Kroupa was appointed as judge to the U.S. Tax Court in June 2013. Her term was supposed to have run for 15 years, but in June 2014 she retired early. This week Kroupa, 60, was indicted on two counts each of tax evasion, filing false returns and obstruction of an IRS audit. Her husband, Robert E. Fackler, 62, also was indicted on the same six tax-related charges. The couple is accused of understating their income by approximately $1 million on tax filings for the 2004 through 2010 tax years. Much of that too-low amount was arrived at by... Read more →


When the hubby and I head to a sporting event where only young fans are given freebies, say a team-logo cup or a bobble-head doll, we joke that we should be able to rent a kid or two so we could get the goodies. Yes, we would take sports-related candy etc. from children! This baby didn't hamper dad's ability to snag a foul ball. Plus, he provides his parents with several potential tax saving options. Click image to see MLB video of the catch and story about the ensuing controversy. Well, one Missouri man allegedly took our jesting approach to... Read more →


There are very few times when folks are on the Internal Revenue Service's side, but this might just be one of them. The IRS has slapped pharmaceutical bad boy Martin Shkreli with a tax lien totaling more than $4.6 million. Former pharmaceutical executive Martin Shkreli in happier times. UPDATE, Aug. 4, 2017: In addition to Uncle Sam, New York State also wants tax money from Shkreli. The Empire State's list of its 250 top tax delinquents has the financier at number 14, with a combined 2016-17 tax debt of $3.97 million. Shkreli's attorney, however, told the New York Post's Page... Read more →


Here in the United States, the income gap between the very wealthy and the rest of us is getting a lot of attention, thanks in large part to the Democratic presidential nominee race. Sen. Bernie Sanders has made the wealth gap a key part of his effort to dislodge former Secretary of State Hillary Clinton from the front-runner spot. Image source: ZMEScience But the battle is waging far beyond the U.S. borders and the 2016 presidential campaign. Global inequity off the charts: There's also a global inequality crisis, says Oxfam in a new report, and it is reaching new extremes.... Read more →


Irwin Schiff, the man who mainstreamed the tax protester movement, has died. His family said he passed away on Oct. 16 at a Fort Worth, Texas, hospital affiliated with the federal prison where he was serving, yet again, time for tax evasion. The cause was lung cancer. He was 87. The latest prison sentence was Schiff's third, all of them connected with his claim that income taxes are unconstitutional. Schiff made his anti-tax case in his books, including Federal Mafia: How It Illegally Imposes and Unlawfully Collects Income Taxes (1992); The Great Income Tax Hoax: Why You Can Immediately Stop... Read more →


Tax evasion is a global problem. Around the world, countries are struggling to make sure that their citizens are paying the taxes they owe. Here in the United States, we try both the stick (audits and even criminal prosecution in some cases) and the carrot (tax breaks) to encourage compliance. The Internal Revenue Service has sweetened the tax reporting pot, especially for those who are hiding their funds in out-of-country accounts. While many tax havens are in tropical locales, you can find places to hide money from the tax man all over the world. For some, the United States is... Read more →


Computers and taxes are inseparable. Most of us use our computers to file our taxes every year. The Internal Revenue Service relies on its computers, which it keeps telling Congress it needs money to upgrade, to process those millions of electronically completed and filed returns. Now some computer scientists are working on an algorithm that could help catch some tax cheats. Partnership tax shelter troubles: Specifically, researchers from the Massachusetts Institute of Technology and the nonprofit technology research and development organization Mitre Corporation, are focusing on a certain type of tax shelter used by partnerships. "We see the tax code... Read more →


Somebody is $11.6 million richer and somebody else (or some company) is in big trouble with the Internal Revenue Service. Sorry for the vagueness, but that's basically how things work when you rat out tax cheats. The feds are eager to get the scoop on whoever is not paying up, but the whistleblowers often don't want the world to know who they are. As for the identity of the alleged tax evaders, we're at the mercy of Uncle Sam's willingness to announce his whistleblower-assisted collection success. What we do know about this latest case comes from attorneys Stephen Kohn and... Read more →


As Greece continues its efforts to get its finances in order, the country still is struggling with tax collection. Many businesses throughout the Mediterranean nation try to do as much business as possible in cash. The lack of record keeping for cash transactions makes it easier for them to avoid paying tax. Apparently, though, it's not just sellers of goods at Greek markets who are looking for ways to skirt the country's taxes. A component of a respected cultural institution has come under scrutiny. Greek officials have launched a tax fraud inquiry into one of the country's most visited archaeological... Read more →


You can't blame tax cheats if one of Martha and the Vandellas' biggest hits has been playing on a loop in their heads of late. Thanks to a new global effort, tax evaders will have nowhere to run to, nowhere to hide. Click image to view Martha and the Vandellas YouTube video. Crossing borders to chase down tax cheats: Tax Inspectors Without Borders, or TIWB, is a new initiative from the United Nations (UN) and the Organization for Economic Cooperation and Development (OECD). Its goal, is as its name indicates, is to send trained tax professionals from richer OECD nations... Read more →


UPDATE, April 7, 2017: Michael Sorrentino is in tax trouble. Again. Mike, or "The Situation" as he was known when he was one of the stars of the MTV hit "Jersey Shore", and his brother Marc were indicted Friday, April 7, 2017, on additional charges of alleged tax evasion. As noted in this post from 2015, the Sorrentino brothers were indicted in 2014 for tax offenses and conspiring to defraud the United States. Under the new charges, Michael now also faces charges of tax evasion and structuring funds to evade currency transaction reports. Marc is now also charged with falsifying... Read more →


The economy has picked up, but times are still tough for many, including Uncle Sam. He loses millions every year in tax money because people don't pay what they owe. Some of these so-called tax gap losses come from accounts U.S. taxpayers have in other countries. The Internal Revenue Service has been trying for years to locate these accounts and get the taxes due. Remember, we have a worldwide tax system instead of, like most other nations, a territorial tax system. Territorial vs. worldwide taxes: Under a territorial system, taxes are paid to the country in which the money is... Read more →