Tax evasion Feed

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's 89 years, later and Scarface still gets our attention, most recently in a movie about his later days. If there's one tiny sliver of silver lining in coronavirus self-isolation, it's that I feel a bit better about shelling out money for added television features. During our stay-home time, the hubby and I are taking advantage of premium cable, as well as the multiple streaming platforms to which we subscribe. Right now, my viewing tastes are winning.... Read more →


Photo by Vera Arsic via Pexels The biggest problem for most of us in coronavirus lockdown with our families, whether ordered by state or local officials or self-imposed, is figuring out how to not get on each other's last nerve. For some, however, the forced togetherness is deadly serious. Possibly just deadly. Domestic violence since COVID-19 appeared has spiked as victims find themselves forced to stay home with abusers, according to those who work to protect people, still primarily women, from abusive partners and spouses. It's happening globally, across the United States and here in Texas. "During a time of... Read more →


Oh, Canadians. A recent report on tax attitudes north of the 49th parallel is upsetting my idealized vision of your country. A recent Canada Revenue Agency (CRA) internal memo, first reported by Blacklock's Reporter, found that around 20 percent of Canadians believe the benefits of tax cheating outweigh the risks. In fact, the CRA said 26 percent don't think that tax officials will discover their tax evasion. The CRA also found that many Canadians did not view tax evasion on amounts less than $1,000 to be "serious tax cheating." And it classified 13 percent as outlaws who view tax evasion... Read more →


Having plenty of money apparently also has some drawbacks. Really. One is that you could soon get more attention from the Internal Revenue Service, especially if you've been, shall we say, a bit lax in letting Uncle Sam know about your how well you're doing. The IRS announced today that it will be sending agents to visit taxpayers who haven't filed returns or didn't do so in a timely manner in 2018 or previous years. These particular in-person tax inquiries, according to the IRS, will be on those whose income is $100,000 or more. Audit income disparities: These in-person audits... Read more →


IRS building by David Boeke via Flickr CC A lot of former Internal Revenue Service employees take the lessons they learned on that job and create second careers as tax advisers and preparers. That's a nice professional segue. Going from being part of the U.S. tax collection machine to helping folks pay Uncle Sam as little as legally possible. But it needs to be done after IRS employees leave their government job. One current IRS staffer in the agency's Andover, Massachusetts, service center was, to borrow a tax term, double dipping. Worse, federal prosecutors say she filed almost 600 false... Read more →


December is, for the most part, a festive month. The holidays and all that accompanies them, from songs to movies to the joy of youngsters and young at heart, bring out the best in most of us. But things aren't quite so bright and jolly for everyone. Despite an economic recovery that's lifted people out of poverty in most areas of the country, poverty increased in at least one county in every state between 2016 and 2018. The poverty rate — defined as the percentage of people in households earning less than the current $25,750 threshold for a family of... Read more →


Greek street market vendors offer just about everything. (Photo: Travels with Gerri-Travellerspoint) Every day, more Americans go digital, at least partially, when comes to their finances. We pay via our smartphone features and apps. Our paychecks or gig earnings are directly deposited. Even the Internal Revenue Service is nudging (and sometimes shoving) us to handle our tax tasks electronically. But we are nowhere near where Greece is going. That Mediterranean country, the one that's been on the financial edge or over it for years, now is forcing its residents to use electronic transactions equal to around a third of their... Read more →


Folks who cheat on their taxes to pocket extra dollars are infuriating enough to those of us struggling to do everything right on our 1040 forms. Folks who go to extremes to evade taxes are even more maddening. The Internal Revenue Service, however, has some good news for us here. It's Criminal Investigation (CI) unit is catching and convicting these tax criminals at a commendable rate. A 91.2 percent conviction rate in 2019, to be precise. That's among the highest of all federal law enforcement agencies, according to the IRS. And CI, which detailed that conviction rate and other successes... Read more →


A walk along Long Bay in the British Virgin Islands (Photo courtesy Long Bay Beach Club Resort) The first Caribbean vacation the hubby and I took was to the British Virgin Islands (BVI). We had a lovely suite on a hillside overlooking Long Bay. The beaches were fantastic, the weather was ideal, the food superb and we — and by we, I mean the hubby — got in some scuba diving during a day-sail trip. I saw that barracuda in the water and opted to stay on deck. Since then, we've hit a few other island getaway spots, but BVI... Read more →


Yes, that could be a real IRS revenue officer knocking on your door if live in Arkansas, Texas or Wisconsin and have ignored prior notices to pay your overdue tax bill. Have you been a bit remiss in meeting your tax duties? If so and you live in Arkansas, Texas or Wisconsin, you've likely or soon could find an Internal Revenue Service agent on your doorstep. The IRS has announced that these in-person visits are part of a larger effort by the agency to, it its words, ensure fairness in the tax system. The special compliance efforts will encompass both... Read more →


Teslas are the most popular electric vehicles (EVs) in the United States. Creator Elon Musk, however, isn't riding on his EV's laurels. The space exploration and auto impresario says some unusual custom horn sounds are coming. That's right, the honk of your high-dollar Tesla soon could replicate fart and goat noises. That should spark more potential owner interest, although the biggest market for this change, 9-year-old boys, can't drive. Still, Musk knows he needs to do something to keep interest in Teslas high since the EVs no longer qualify for the federal tax credit. Worse, a new report from an... Read more →


Relationships, even in the best of circumstances, are hard. When one partner is abusive, then things get untenable. October is Domestic Violence Awareness Month. During this month, the National Coalition Against Domestic Violence (NCADV) and similar groups are highlighting the victims and survivors, their children and families, their friends and family and their communities that are impacted by domestic violence. More importantly, these organizations are providing assistance and counseling to those in abusive relationships and looking for ways to leave them. Financial as well as physical abuse: While most of us immediately think of physical harm when we hear of... Read more →


The tax gap is holding as steady as this gap on the old Florida Keys bridge. (Photo by Ewen Roberts via Flickr) We might want to revise Benjamin Franklin's famous tax saying. The new version could read, "In in this world nothing can be said to be certain, except death, taxes and the tax gap." The tax gap is the difference between the amount of tax that filers should pay and the amount that they actually hand over voluntarily and on time to the Internal Revenue Service. And IRS data continues to show that while tax years come and tax... Read more →


The Trump Administration currently is embroiled in a whistleblower controversy. But another situation where a witness to tax wrongdoing — not any alleged Donald J. Trump activity! — has worked out much more satisfactorily. A $11.5 million award has been presented to a person whose information led to the government collecting over $44.4 million in taxes, penalties and interest, according to the whistleblower attorneys involved in the case. In announcing the award, attorneys Stephen M. Kohn of the Washington, D.C. firm of Kohn, Kohn and Colapinto and Dean Zerbe of the Houston-based firm Zerbe, Miller, Fingeret, Frank & Jadav, lauded... Read more →


Yo ho, all ye salty sea dogs and scalawags. Just a quick reminder on this annual Talk Like a Pirate Day that the Internal Revenue Service wants its cut of your ill-gotten gains, be they pillaged pirate loot or otherwise criminally obtained. Click image to watch the ESPN ad. I know Andrew McCutchen is no longer a Pittsburgh Pirate, but the daring attack the former MLB National League MVP and his crew of sports team buccaneer mascots launched on an ESPN meeting back in 2013 still is one of my favorite television ads. And while Cutch, who's now plays for... Read more →


Darth Maul apparently — spoiler alert — was killed in The Phantom Menace, but later showed up in subsequent Star Wars productions. His persistence is akin phantom investment transactions that are created simply to lower multinational companies' tax bills. (Photo via Lucasfilm) What I consider the real Star Wars trilogy came out when I was in college. That's why I've not bothered to see any of the subsequent sequel/prequel movies. But they came to mind last week when the International Monetary Fund (IMF) and the University of Copenhagen released a new study on the growth of so-called phantom capital and... Read more →


Al "Scarface" Capone at his sentencing for tax evasion. Back in the Prohibition Era, federal agents — notably those from the Internal Revenue Service — took down the notorious gangster. The tax agency's Criminal Investigation agents are celebrating their 100th birthday this year. (Photo courtesy All That's Interesting: 25 Al Capone Facts) The United States' tax system is based on the premise that all income is taxable, including illegally earned income. Our tax system also relies on the voluntary reporting of that income, including ill-gotten gains. But human nature being what it is, that doesn't always happen, even with legally... Read more →


Bitcoin and other virtual currencies fascinate me, but that's as far as it goes. I don't own and have never had any interest in cryptocurrencies. I'm basically a say it with cash kind of gal. Part of my crypto trepidation is that I've yet to grasp how Bitcoin is mined, despite the hubby's patient, and repeated, explanations. And like many Senators during a recent hearing on Facebook's proposed Libra digital money, I'm skeptical of the concept (as well as suspicious of the online social media platform proposing it, but that's another blog post). My disavowal of cryptocurrency, however, has been... Read more →


Much is made of the United States' voluntary compliance tax system. The IRS depends on every taxpayer to honestly and accurately report his or her earnings and figure the correct tax due on the amounts. Apparently, we agree with the self-reporting system, with most taxpayers saying cheating on taxes is wrong. Of course, part of the reason we look askance at fudging Form 1040 figures is because we're afraid the IRS will catch us. However, our fear of a tax audit might be exaggerated, according to the latest IRS Data Book. Fewer return reviews: Audits, or examinations as they're called... Read more →


//Kara's Party Ideas If you don't have to work on this post-July 4th Friday, then you're probably spending the day recovering from your patriotic and fireworks-laden celebrations. Some folks also are resting up from their birthday partying. Yep, I'm talking about those folks born on the Fourth of July. Famous 4th birthday celebrants: Several celebrities share this early July birth date. People magazine published a slide show and those from that presentation that caught my eye include: Eva Marie Saint, the Academy Award winning actress immortalized in On the Waterfront, which was directed by Elia Kazan and also showcased real-life... Read more →