TaxConnections


 

Tag Archive for Tax Problems

“Accidental Americans” Caught In A Kafkaean Trap

Kat Jennings

This article was passed along to us and was originally printed in French for the French magazine L’obs. Due to its dealings with FATCA, we decided to post it for you.

A recent US tax law requires all nationals to report their income. Those who were born by chance in the United States like Fabien live a nightmare.

Read more

Ten Ways to Avoid Problems at Tax Time

Debra Thompson

Looking for ways to avoid the last-minute rush for doing your taxes? The IRS offers these tips.

1.Don’t Procrastinate.Resist the temptation to put off your taxes until the last minute. Your haste to meet the filing deadline may cause you to overlook potential sources of tax savings and will likely increase your risk of making an error.

2.Organize Your Tax Records.Tax preparation time can be Read more

Preventing Tax Problems When Employees Travel

Sending employees on business trips is essential for countless companies and can result in tax headaches for both the employer and the employee if the tax regulations are not adhered to. If the rules are followed, the cost of the employee’s travel will be fully deductible to the employer, with the exception of meals, which are only 50% deductible, and tax-free reimbursement to the employee. In addition, the reimbursement is not subject to FICA or payroll withholding.

On the other hand, if the rules are not followed, the expenses are still deductible by the employer, but the reimbursement must be added to the employee’s taxable wages, subject to both FICA and payroll withholding. Read more

When Do You Need To Hire A Tax Attorney?

In a world of CPA’s, tax preparers, enrolled agents, bookkeepers and accountants, it can be confusing to know when to hire a tax attorney. After all, you’re not hiring a tax lawyer to prepare your annual income tax return. So when and why would you need a tax attorney’s services?

IRS And State Tax Disputes

First and foremost, you need a tax lawyer if you have a dispute with the Internal Revenue Service (IRS) or any State Tax Agency.

Most tax disputes arise in the form of an audit of one or several past tax returns. If the IRS notifies you of an audit, you should hire a tax attorney immediately. Read more

An Unusual But Effective IRS Collection Tool: The Writ Of Ne Exeat Republica

Congress has given the IRS potent tools to collect taxes. The IRS can impose liens on a taxpayer’s property and can seize it through levy, all without prior judicial authorization. But for taxpayers who attempt to move or keep their assets offshore to circumvent IRS collections – beware of the writ of ne exeat republica.

The writ of ne exeat republica effectively prevents a person from leaving the Court’s jurisdiction and the IRS has demonstrated that where its efforts to seize a taxpayer’s property to collect his past due taxes, the IRS essentially seized the taxpayer instead.

Predictably, it takes some fairly serious misbehavior to lead a court to bar someone from traveling – and that is what happened to Charles and Kathleen Barrett of Colorado. Read more

Freelancer? Avoid These ‘7 Deadly Sins’ At Tax Time

In separate reports, Zen99 and the consumer finance website nerdwallet ranked Los Angeles the best city for freelancers. In 2012, 12% of people in Los Angeles reported themselves as self-employed. Each of these website reports considered housing and health care costs, the percentage of freelancers in an area as factors. Even before the sharing economy began to take off, the entertainment industry and growing tech scene were already strong sources of freelance gigs in L.A.

For freelancers, consultants, actors and other self employed people, life gets complicated come tax time. Digging around for the paperwork to fill out tax forms practically qualify as exercise. Such business people have a nightmare trying to find receipts which is why you should keep track expenses and receipts year round rather than pursuing a paper chase Read more

DOJ Continues To Prosecute Offshore Bankers Who Have Aided Taxpayers To Avoid US Taxes!

Bloomberg News reports that federal prosecutors in Manhattan filed an expanded indictment Wednesday against former Wegelin & Co. bankers Roger Keller, Urs Frei and Michael Berlinka.

On Wednesday, August 28, 2013 we posted U.S. Turns Up The Pressure On Swiss Banks! where we discussed that thousands of Swiss bank workers have seen their data handed over to justice authorities in the United States and are now living with a considerable amount of uncertainty.

Now three Swiss bankers accused in 2012 of helping Americans hide more than $1.2 billion from the U.S. Internal Revenue Service face new charges of obstructing the Read more

IRS Agents To Hunt Tax Dodgers Overseas

On a recent airplane trip from the Bay Area to Southern California, I sat beside a distinguished-looking elderly man. I initiated a conversation with him and found out he was a former judge now living in Mexico. We talked about everything, including taxation.

The former judge admitted that he was an American citizen and he and some of his friends have problems sleeping because of Foreign Account Tax Compliance Act (FATCA). So, I asked him what about Foreign Bank Account Reporting (FBAR), as that was more serious than FATCA. But he had never heard about it. I wondered how many people are like the former judge and his friends who can’t sleep at night because of FATCA and who never heard of FBAR. Read more

UBS Whistleblower Bradley Birkenfeld Subpoenaed By French Authorities

A former UBS AG banker whose disclosures led the U.S. Department of Justice to investigate the Swiss bank for helping its American clients evade taxes has asked a Florida federal judge for permission to travel to France to aid in that country’s scrutiny of the bank, after receiving a subpoena from a French magistrate judge.

Bradley Birkenfeld filed a motion on Friday saying he had received a subpoena to appear before French Magistrate Judge Guillaume Daieff in Paris later this month to help the judge and French law enforcement with their investigation into the bank’s activities.

“The subpoena commands Mr. Birkenfeld to assist the investigation by appearing before him to provide testimony in his chambers,” the motion said. “Through French counsel, Read more

5 Biggest, Best Homeowner Tax Breaks – Get Them While They Are Still Here!

Leaving off deductions you’re eligible for, such as mortgage interest and property taxes, is leaving money on the table and with tax reform revving up again on Capitol Hill, with the heads of key committees pledging to work toward a simpler and fairer tax code, Congress may be looking to tradeoff these tax breaks with lower tax rates. Sounds intriguing?

Homeownership can pay off big time if you itemize your deductions. Use these five tax breaks to cut what you owe Uncle Sam:

1. Home Office

Do you work at home? Collect a tax break either by using the simplified method explained below or doing some complicated calculations to claim your exact home office expenses. Read more

IRS Begins Limited Test of Providing Appointments at 10 Walk-In Locations

The Internal Revenue Service announced today a limited test in 10 of its larger Tax Assistance Centers around the country to determine if an appointment-based service approach can help reduce taxpayer wait times during a time of severe budget cuts.

While the IRS believes this approach will benefit taxpayers by helping them avoid long waits in line that they otherwise might have experienced, the IRS is testing this process during the tax filing season to ensure this is a more efficient approach for taxpayers.

“During a challenging filing season with a very limited budget, we need to find ways to increase our efficiency and still provide the best service possible to taxpayers,” said IRS Commissioner John Koskinen. “My hope is that this test increases the level of customer Read more

TaxConnections