Tax evasion Feed

Lewis Hamilton visiting fans at the 2018 Formula 1 British Grand Prix at Silverstone (Photo by Jen_ross83) It's the greatest time of the year for sports fans as a variety of games and events overlap. College and professional football games fill up our weekends, and for the National Football League (NFL) our Mondays and Thursdays. Pucks have dropped in National Hockey League (NHL) arenas. The National Basketball Association (NBA) preseason will give way next week to match-ups that count. And, of course, four Major League Baseball (MLB) teams are facing off to determine which two will make it into the... Read more →


The tax voyeur in all of us enjoyed the latest unsurprising revelations of how rich people hide money around the world, including a dozen U.S. states and D.C., to avoid paying taxes. The attention to this not really news item also is a good time to note the difference between illegal tax evasion and legal tax avoidance. The South Dakota capitol building is in the state's capital city of Pierre. The state itself is the U.S. capital as far as the most trusts identified in the Pandora Papers. (Photo by Jake DeGroot via Wikipedia) Last week we got news that... Read more →


The big deadline change for 2021 was when the Internal Revenue Service extended the regular income tax filing deadline from April 15 to May 17. But it also made a few more calendar moves, including one that this month affects folks with foreign financial accounts. The IRS left in place the due date for filing Form 114, Report of Foreign Bank and Financial Accounts, usually referred to as FBAR. Sort of. Although the tax agency didn't move the April deadline, it did grant FBAR filers an automatic extension until Oct. 15. That's right. Owners of foreign accounts now face the... Read more →


Looking to hide money from the Internal Revenue Service in another country? The tax agency makes finding such funds a priority, but one man accused of helping set up tax shelters has managed to slip through U.S. tax officials' hands. (Photo from Pixabay via Pexels) More than five years ago, 11.5 million leaked documents detailing information for more than 214,000 offshore companies were made public. The world was fascinated with the tale of how wealthy individuals, with the help of money managers and bankers, created tax shelters. That reveal by the International Consortium of Investigative Journalists, dubbed the Panama Papers... Read more →


The loss of tax revenue is substantial, since most states collect tax (or are supposed to) on all their meals, from eat-in to pick up to delivery. Tasty and taxable. (Photo by Adrienn via Pexels) Running a restaurant poses many challenges. Dealing with increased food costs. Hiring and training staff. Finding an accessible and affordable location. Complying with health and other regulatory rules. Paying taxes. The tax consideration is getting special attention in California, where an extended investigation reveals that around a fifth of the state's restaurants are using high-tech methods to skip out on taxes. "The California Department of... Read more →


Technology, not heavy equipment, can close the Tax Gap, according to two former IRS commissioners. The Tax Gap has always been a concern of the Internal Revenue Service, Congress, and taxpayers who pay their taxes. Basically, it's the amount of money the IRS figures it is due from filers, but which it's been unable to collect. Two former IRS execs say they know a way the agency can collect more unpaid taxes. Even better, write former IRS Commissioner Charles Rossotti (he was head honcho from 1997 to 2001) and Fred Forman, former associate commissioner for modernization from 2000 to 2004,... Read more →


One of the biggest challenges for any business, whether new or established, small or larger, is hiring. It's also a challenge for the Internal Revenue Service, especially when companies don't understand or intentionally avoid employment taxes. Money lost from unpaid payroll taxes, both unreported or underreported, is huge, notes a recent Kiplinger's Tax Newsletter, accounting for a large portion of the overall federal Tax Gap. This is the amount of money the IRS is owed, but hasn't been able to collect. Kiplinger cites IRS data from 2019 that found $77 billion of payroll taxes fell through the cracks yearly from... Read more →


Of course there's a tax crime connection. A defunct Connecticut minor league hockey club is the focus of a new Netflix documentary. The film's tales of the brawling Danbury Trashers offer this weekend's diversion, along with a bit of a tax connection. I fell in love with hockey when I went to my first game, a Washington Capitals match back in 1981 shortly after we moved to the National Capital area. Those early Capitals' teams sucked majorly. But they had some good individual players. The skills and heart of Rick Green, Mike Gartner, and young American phenom Bobby Carpenter made... Read more →


UPDATE, Oct. 18, 2021: The Capone auction slipped by me, as I focused on the impending Oct. 15 filing extension deadline. But it went off as planned earlier this month, with the convicted tax felon's heirs getting more than $3 million for many of his personal items. The Chicago Tribune has the sale's details, and notes the capital gains taxes they will pay. This U.S. Department of Justice mug shot of Al Capone was taken four months before his tax eviction conviction on Oct. 17, 1931. It is not one of the Capone items that will be auctioned by his... Read more →


Tonight's Powerball drawing is $304 million*. If your numbers don't come up, or even if they do, you can check out Mega Millions' drawing on Friday, Aug. 27, for a jackpot that by then will be more than the current $288 million**. *UPDATE, Thursday, Aug. 26, 2021: No big winner last night. That pushes the Powerball jackpot for Saturday's, Aug. 28, drawing to, right now, $322 million. **UPDATE, Saturday, Aug. 28, 2021: Stop me if you're heard this, but no big Mega Millions winner on Aug. 27. That means the Tuesday, Aug. 31, jackpot will be at least $306 million.... Read more →


When is a tax whistleblower not a whistleblower, at least as far as getting rewarded for certain information? When the Internal Revenue Service determines that added taxes didn't directly come from the whistleblower's, well, whistle blowing. That's what recently happened to a man who altered the IRS to what he thought was unreported, and therefore untaxed, income. The IRS, acting on the tip, reviewed the reported individual's apparently questionable filing. However, the IRS found that the suspect funds were indeed non-taxable. But then the IRS took a longer look at the taxpayer's filing, and found what it determined were improper... Read more →


If you don't follow international taxes, you probably missed the CumEx story. The team of investigative reporters who uncovered the alleged tax fraud schemes back in 2017 characterized it as "the largest tax robbery in the history of Europe." Thirty-eight reporters from 19 newsrooms in 12 countries collaborated across borders to dig through 180,000 pages of documents related to the allected tax fraud. Just what did the alleged tax schemers do? The short version is, allegedly, that banks, stock traders, and lawyers obtained billions from European treasuries through suspected fraud and speculation involving investment dividend taxes. According to the journalists,... Read more →


The Capitol Hill debate over how cryptocurrency taxes fit into the funding of the infrastructure bill continues. Most Americans, however, already have decided that stronger Internal Revenue Service oversight of digital asset transactions are OK. Virtual assets meet the infrastructure road: Part of the payment of the $1 trillion infrastructure measure now before the Senate would come from stricter enforcement of cryptocurrency transactions. The Internal Revenue Service considers virtual currency a capital asset, meaning potential taxes when transactions produce a profit. The agency has ramped up efforts to track virtual currency moves in recent year. A provision in the infrastructure... Read more →


UPDATE, Aug. 9, 2021: A last-minute push to limit new cryptocurrency tax reporting requirements in the $1 trillion infrastructure package (see Aug. 4 update below) failed today, despite a bipartisan agreement and a frenzied lobbying push, per The Washington Post. UPDATE, Aug. 4, 2021: In response to the concerns elaborated on in the rest of this post, a bipartisan group of lawmakers has offered an alternative cryptocurrency revenue-raising plan. The amendment was crafted by Senate Finance Committee Chairman Ron Wyden (D-Oregon) and Republican Sens. Pat Toomey (more on his complaints later in this post) of Pennsylvania and Cynthia Lummis of... Read more →


The Internal Revenue Service and those who want Uncle Sam to go after tax evaders were elated when a bipartisan infrastructure bill included money for enhanced tax collection efforts. Proponents said the beefed-up proposal to close the Tax Gap could bring in an additional $100 billion over the next 10 years in owed but unpaid taxes. However, that funding option has been scuttled. "Well, one reason it's not part of the [infrastructure] proposal is that we did have [Republican] pushback," said Sen. Rob Portman (R-Ohio) during an appearance today on CNN's "State of the Union" program. But there's still hope... Read more →


We regular folks tend to have a complicated relationship with the wealthy. And by complicated, I mean one-sided, unrealistic, and too often reverential. Being aspirational, we love to gawk at what they can get away with because of their money, and dream of one day being in their Manolos and mansions. That's fueled way too many not-really reality shows. Such hopes also are a big reason scammers can convince wealthy wannabes to fall for schemes that peddle false hopes of large tax deductions. In real-life tax reality, these dodges simply are a way to push hopeful taxpayers further away from... Read more →


Here's some good news to kick off you weekend. Most U.S. taxpayers say cheating on taxes is wrong. Of the taxpayers who participated in the Internal Revenue Service's 2020 Comprehensive Taxpayer Attitude Survey (CTAS), 87 percent said it is not at all acceptable to cheat on their income taxes. Even more, 94 percent, believe it is a civic duty to pay their fair share of taxes. Another 91 percent said everyone who cheats on their taxes should be held accountable. The combination online-telephone survey was conducted from Aug. 24, 2020, through Sept. 24, 2020, by Pacific Consulting Group (PCG). PCG... Read more →


Photo of John McAfee shared by his wife earlier this year as part of a Twitter post arguing for his release from a Spanish prison. Last week, millionaire software developer John McAfee was in a Spanish court arguing that he shouldn't be extradited to the United States to face tax evasion charges. Today, MacAfee was found dead in his cell at a Barcelona-area jail. There's no official word on the cause of death. News reports, however, say a preliminary investigation found no signs of foul play. Early indications are that McAfee hanged himself. Hours before the discovery, Spain's National Court... Read more →


While one accused wealthy tax cheat awaits a Spanish court's decision on whether he'll be returned to the United States to face charges, U.S. lawmakers look for ways to snare more rich tax evaders. Or at least get more from them up front. Rather than letting the wealthy have more money to burn, efforts are underway in Washington, D.C., to make it easier to catch rich tax scofflaws, as well as to simply tax them even more. Billionaires who've managed to use tax laws to avoid paying any tax have been getting even more attention lately. Some wealthy people, however,... Read more →


One of the many reasons that people hate taxes is that after the hassle of filing, then comes the fear that a Form 1040 mistake will mean an audit. The sort-of good news for taxpayers is that the Internal Revenue Service hasn't been auditing as many people in recent years. The agency has had other things to worry about, like doing its myriad jobs with fewer staff and less money. Then there's COVID-19, with added pandemic payments that the IRS is tasked with distributing. Things could be changing, though. More people are getting vaccinated, meaning the end of the coronavirus... Read more →