Tag Archive for Criminal Tax Investigations

Think You Can Hide From The IRS? Target Orange County, California

The IRS is using its extensive Big Data resources to pin-point their investigations to the wealthiest areas in Orange County, California. The idea being that anyone who is selected for investigation in these areas will result in a higher tax liability than those who live in less affluent areas. The government is looking for non-filers, persons engaged in on-line and virtual currency transactions, businesses cheating or delinquent on employment taxes and individuals with undisclosed foreign bank accounts.

Non-Filers

When a taxpayer does not file and the IRS has information statements indicating a filing requirement, the IRS uses the data to file a return on behalf of the taxpayer if there is a projected balance owed. In 2012, the IRS used information statements to file 803,000 Read More

Written by | Posted in FATCA • FBAR • IRS • OVDP • Virtual Currency

Famous Alaska Bar Landmark Shut Down By IRS Is Reopened By New Owners

Alaska’s economy is dominated by the oil, natural gas, and fishing industries, resources which it has in abundance. Tourism is also a significant part of the economy and that is where you can find some classic Alaska bars but for some time now these bars have been under pressure to stay in business and to do so have created tax problems and gained the attention of the IRS.

So what makes a classic Alaska bar?

A classic Alaska bar is a magical mixture — a touch of danger and a place where characters gather, featuring a strong relationship between bartender and patrons. More than fun, a classic Alaska bar is educational in a perverse sort of way. Past customers bring them up in conversation. People outside Alaska know of them. Read More

Written by | Posted in IRS • Tax Fraud/Evasion/Crimes

Think You Can Hide From The IRS? Target San Francisco Bay Area, California

The IRS is using its extensive Big Data resources to pin-point their investigations to the wealthiest areas in the San Francisco Bay Area and Silicon Valley. The idea being that anyone who is selected for investigation in these areas will result in a higher tax liability than those who live in less affluent areas. The government is looking for non-filers, persons engaged in on-line and virtual currency transactions, businesses cheating or delinquent on employment taxes and individuals with undisclosed foreign bank accounts.

Non-Filers

When a taxpayer does not file and the IRS has information statements indicating a filing requirement, the IRS uses the data to file a return on behalf of the taxpayer if there is a projected balance owed. In 2012, the IRS used information statements to file 803,000 returns Read More

Written by | Posted in FATCA • FBAR • Income Tax • Individual • IRS • Tax Fraud/Evasion/Crimes

U.S. Cracks Israeli Bank Leumi – Bank Admits to Assisting U.S. Taxpayers in Hiding Assets in Offshore Bank Accounts

Americans with Israeli bank or other financial accounts could face a tough tax season in 2015 if they do not come forward and disclose their assets to the IRS. Israeli banks have come under increased scrutiny by the IRS in regards to disclosing the accounts of their American clients. In particular, three Israeli banks- Bank Hapoalim, Bank Leumi and Mizrahi Tefahot- have been under investigation by the Department of Justice.

The first Israeli bank to now bow to the United States is Bank Leumi. A deferred prosecution agreement between the Bank Leumi Group and the U.S. Department of Justice was filed today in the Central District of California that defers prosecution on a criminal information charging the bank with conspiracy to aid and assist in the preparation and presentation of false tax returns and other documents to the Internal Revenue Service. This is the same type Read More

Written by | Posted in FATCA • FBAR • OVDP • Tax Fraud/Evasion/Crimes

IRS Computers Not Affected By IRS Budget Cuts

It’s impossible to imagine the Internal Revenue Service or most other number-crunching agencies or companies working without computers. But when the IRS went to computers in 1961 by unveiling the Automatic Data Processing system in Martinsburg, West Virginia there was an uproar. The public then envisioned a scenario in which erroneous notices forced people to overpay, or $100 million dollars in unwarranted refund checks were issued.

Now that 54 years have passed we all know the benefits of a computerized system: Computers speed up processing times, discover errors taxpayers make against themselves, and verify that all citizens pay a fair amount. It is through this resource that the IRS can more efficiently meet its functions in light of the 2015 IRS budget that was just cut $341 million by Congress. Read More

Written by | Posted in IRS
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