Tax evasion Feed

Photo by RODNAE Productions Welcome to the continuation of the ol' blog's Tax Crime Weekend! Yesterday's post featured efforts to end abusive tax schemes and bring their promoters to justice. Today's post expands on the legal reckoning theme. The Internal Revenue Service's Criminal Investigation division, known as IRS-CI, recently revealed its top 10 cases of 2022. Wide variety of schemes, one outcome: The tax evasion attempts included Ponzi pyramid schemes, fake businesses, COVID-19 fraud, bogus tax credit, and even a reality TV couple. And more. Despite the diversity of their criminal tax acts, they shared one thing. They got caught.... Read more →


One of the forms in the long list of tax documents you need to file your 2022 return is the 1099-K. This form has been used for years for third-party payment processors — for example, PayPal, Amazon, eBay, Facebook Marketplace, rideshare companies, and many more — to report to fund recipients the money they got during the year. The Internal Revenue Service also gets a copy so it can check the amounts that the earners report on their tax returns. Taxpayers have been getting 1099-K forms since 2012, with this initial reporting coving third-party amounts in 2011. The factors that... Read more →


Are you worried about getting a slew of 1099-K forms next year in connection with your side gig earnings? The Internal Revenue Service has an early Christmas present for you. The tax agency today announced that it was going to delay the requirement that third-party settlement organizations — places like Venmo, PayPal, CashApp, and similar payment mechanisms — issue the 1099-Ks to earners who in 2022 received at least $600 in a single payment or in aggregate, regardless of the number of transactions, for their goods or services. Instead, the new lower earnings level that triggers issuance of 1099-Ks will... Read more →


Nothing ever disappears on the internet. Even, or especially, tax related posts. Take the bad legal take on taxes that tops this post. It was retweeted on Sunday (Dec. 11) by, you guessed it, Bad Legal Takes. But there's no indication of when Dave Champion originally blasted out his bad tax advice. It might have been before he was barred by a federal court in 2012 from promoting a tax fraud scheme. Or maybe he's back, since this Tweet apparently went up in October. His books also are still for sale online. Either way, that item this weekend spurred a... Read more →


Photo by cottonbro studio Italian retailers prefer cash transactions. That helps explain why the country ranks near the bottom in Europe in digital payment adoption, and is among the 30 most "cash dependent" major economies in the world, according to the latest Cash Intensity Index (ICC). This ranking, measures the effect of cash usage on the Gross Domestic Product in 95 countries around the world. The currency preference also is why Italian business owners are cheering the 2023 draft budget proposed by new far-right Prime Minister Giorgia Meloni. The new government's fiscal plan includes a measure to permit stores, taxis... Read more →


Some taxpayers might not be this happy in 2023 with their federal tax refund. (Image via Giphy) Many folks are already eagerly anticipating the 2023 tax filing season because they expect to get a refund from Uncle Sam. They might be disappointed. In a recent news release encouraging taxpayers to get ready for the upcoming filing season, the Internal Revenue Service slipped in this warning: Refunds may be smaller in 2023. There are three tax issues in 2022 that contribute to why the IRS will be sending some taxpayers smaller refunds when they file next year. No extra coronavirus funds:... Read more →


Not all foreign tax havens are tropical islands, but the idyllic getaways do conjure images of tax crooks enjoying isolated beaches at Internal Revenue Service's expense. (Photo by Asad Photo Maldives) Correlation does not imply causation, but in a couple of high-profile offshore tax evasion cases, it's starting to look like trying to allegedly put one over on the U.S. tax collector is not a healthy move. For the second time in four months, a defendant in an offshore tax evasion case has died. Carlos Kepke, a Houston-based tax attorney who was indicted on charges that he helped hide $225... Read more →


Some of my grandmother's paintings, known as the main Vera Gallery in our house. (Photo by Kay Bell) The hubby and I are art fans, primarily of painted works. That's why almost all of our vacations include a visit to our destinations' museums. Our appreciation of a piece hanging on a wall is why most of our rooms are adorned by framed artworks. Most are signed limited edition print versions of our favorite painters' works. But we also have some originals of a few notable artists, as well as works that are more sentimental but just as lovely, like the... Read more →


Right now, a lot of folks are thinking they should have been like Larry. The Larry they wished they'd emulated is Larry David, known for his curmudgeonly television character. He tweaked that persona to become a naysayer on several inventions that, per the commercial's Super Bowl debut, changed the world. The television ad for FTX crypto exchange advised viewers, "Don't be like Larry" and instead invest in digital currency via the company. On Friday, Nov. 11, FTX filed for bankruptcy following reports that between $1 billion to $2 billion of FTX customer funds disappeared. Continuing crypto troubles: This is just... Read more →


The Internal Revenue Service's Criminal Investigation (IRS-CI) division is doing its part to close the Tax Gap, which now sits at $496 billion in uncollected tax. The IRS' law enforcement group's recently released annual report notes that its agents initiated more than 2,550 criminal investigations, identified more than $31 billion from tax and financial crimes, and obtained a 90.6 percent conviction rate on cases that were prosecuted. Much of IRS-CI's success during the 2022 fiscal year, which ended on Sept. 30, was due to its increased cooperation and partnership with its global counterparts to combat tax and financial crimes worldwide.... Read more →


The Tax Gap is the amount the Internal Revenue Service says it is owed, but which it's been unable to collect. That amount now is $496 billion. The figure, which was reached after the IRS analyzed tax activity from 2014 through 2016, is an increase of $58 billion from the agency's last estimate. The IRS also did some Tax Gap forecasting. The agency's projections for tax years 2017 through 2019 show an estimated $540 billion per year. Both those Tax Gap amounts are huge, and disturbing. That's why they earn this weekend's dual By the Numbers recognition. Tax Gap components:... Read more →


The October filing extension deadline, which falls on Oct. 17 this year since the 15th is Saturday, is less than a week away. The Internal Revenue Service is waiting on the uber procrastinators to get their filings in by next Monday. But the IRS isn't the only federal financial office awaiting postponed documents. FinCEN also demands extended FBAR filings be in by Oct. 17. Taxable money, but not an IRS issue: FBAR, or Report of Foreign Bank and Financial Accounts, is how FBAR information is the federal government's way of tracking foreign bank and financial accounts owned by U.S. taxpayers.... Read more →


The Internal Revenue Service saw its largest tax fraud case ever end on Aug. 5 when Robert T. Brockman died. The 81-year-old billionaire had been charged with 39 criminal financial crimes, including tax evasion. Federal investigations alleged that Brockman was part of an elaborate offshore tax fraud scheme that cheated the U.S. Treasury out of more than $1.4 billion in taxes, penalties, and interest. While the criminal case is over, legal actions in civil and tax courtrooms to recoup the allegedly unpaid taxes (and add-on charges) continue. Special tax action to protect collection: As part of that process, the IRS... Read more →


Cryptocurrency continues to make inroads into our daily lives, including our taxes. On Sept. 1, Colorado officially became the first U.S. state to allow its residents to pay their state taxes in bitcoin. It's a pretty safe assumption that those Centennial State residents who pay state taxes with bitcoin also will be forthcoming at the federal level when it comes to their digital assets. But for those who are less transparent, the Internal Revenue Service is stepping up its efforts to know about and collect on crypto transactions. Legal action against hidden crypto: Last week, the IRS obtained a so-called... Read more →


Just more than a year ago, a Parkville, Missouri, man pleaded guilty to charges filed in two separate federal investigations. One was a case involving conspiracy to commit wire and major program fraud. The defendant admitted to his role in a $335 million scheme to defraud federal programs that award contracts to firms owned by minorities, veterans, and service-disabled veterans. The second charge was one of tax evasion to the tune of $615,847. The Missouri man confessed to claiming fraudulent business expenses on his 2016 tax year return and filing false returns from 2013 to 2016. Last Thursday, Sept. 22,... Read more →


One Martha's Vineyard vacationer had lots of questions when he was arrested for tax evasion following a minor traffic accident. The answer was a 'tax' typo. (Photo by Vadim Bogulov on Unsplash) Every taxpayer knows that a small mistake on a tax return could create big tax problems. A Philadelphia man found out a one-letter typo involving the word "tax" also carried a hefty price. Angus McCoubrey, who with his wife was vacationing last month on Martha's Vineyard, spent two nights in an island jail following a minor traffic accident. The jailing, however, wasn't for the fender bender. Instead, in... Read more →


Photo by Jill Burrow We freaked out a bit earlier this summer when we learned a neighbor whose backyard abuts ours was putting in a pool. The good news for us is that it's not a full-sized lap pool. It's one of the area's popular plunge pools, close to their house, with lots of space between it and our property line (and house). And the smaller size meant we didn't have to suffer through a prolonged construction. Despite our property proximity, we're mainly "hi, there" neighbors. Age and family differences — they're younger and have pre-school children — mean we... Read more →


Some come to the Cayman Islands for the beauty of Seven Mile Beach and other natural recreational areas. Others enjoy the Caribbean locale for financial and tax reasons. For more than a decade, wealthy U.S. tax evaders have taken advantage of a gaping tax law loophole that allows them to stash billions in foreign bank accounts, according to a recently released congressional report. Even though the 2010 Foreign Account Tax Compliance Act (FATCA) requires them to report any non-U.S. accounts and pay taxes on all income earned, too many non-taxpayers are using what the Senate Finance Committee report describes as... Read more →


Barclays Bank building in Madrid (Photo by M.Peinado from Alcalá de Henares, España - 001782 - Madrid, CC BY 2.0) It's not a crime to put your money into legitimate foreign financial institutions. However, if the amount meets a certain threshold, you are required to report that money to the U.S. government. When U.S. taxpayers ignore this process, officially known as filing of a Report of Foreign Bank and Financial Accounts, or FBAR, they can face costly consequences. That's the case in the FBAR collection complaint filed Aug. 15 by federal officials seeking judgment against the defendant who, per the... Read more →


Aaron Paul, as Jesse Pinkman (right), explaining legal representation needs to soon-to-be meth king Walter White, played by Bryan Cranston, in a scene from AMC's "Breaking Bad." As much as I loved that show and its "Better Call Saul" sequel, don't take Jesse's legal advice when it comes to tax troubles. Get honest and experienced professional help for any potentially criminal tax charges, like the ones noted below. Maybe it's because I'm still processing the end "Better Call Saul," the wonderful six-season exploration of television's best show about the evolution of, echoing the emphasis of Breaking Bad's Jesse Pinkman, a... Read more →