May the Fourth (Amendment) Be With You – Part 2: The IRS Power To Execute Search Warrants and Subpoenas and Why You Need a Lawyer
In part one we discussed the IRS power to issue a summons in the pursuit of its mission. A summons empowers the IRS to access the records it needs to facilitate its investigation and collection of delinquent income taxes. However, if the taxpayer becomes the subject of a criminal investigation, the IRS can swear out […]
“May the Fourth Be With You” – Part 1: The IRS Power of Summons
This is part one of a two-part discussion of the powers of the IRS to conduct searches and seizures in its never-ending quest to shore up our government’s hemorrhaging coffers. The Fourth Amendment — alive and well today Anyone who believes that our Constitution with its Bill of Rights is just an outdated remnant of […]
The End of Swiss Banking Secrecy?
“There is only one thing in the world worse than being talked about, and that is not being talked about.”[1] Oscar Wilde’s insightful observation about humankind’s proclivity toward public recognition does have exceptions. For a variety of reasons, men and women throughout the world have often sought confidentiality in their financial affairs, chiefly through banking […]
Helter Shelter: Unveiling the Secret World of Tax Shelters and the Aggressive Tax Attorneys that Inhabit It
While the major news outlets were busy churning out story after story about the countdown to FATCA and the government’s aggressive pursuit of U.S. taxpayers with undisclosed offshore bank accounts last October, a criminal tax case with far-reaching consequences was brewing off in the distance. And that storm was largely ignored. In fact, almost eight months later it […]
FBAR and FATCA – Two Abbreviations That Can Wrap You Around the IRS Axle
FBAR and FATCA are two important abbreviations for those who have overseas financial interests. Failure to file the FBAR report, in view of the IRS’s continuing application of FATCA, can get you into what old military veterans used to call FUBAR. Let’s back up a bit and go over those abbreviations: FBAR is a Foreign […]
Crimes Under the IRC – Part 2 of 2 parts: Crimes of Commission: Tax Perjury, Aiding Another and Hiding Assets
Knowingly filing a false tax return and aiding another to do so are violations of the IRC, Section 7206. Briefly summarized, those violations encompass: Tax perjury — knowingly signing a false tax return that is false Willfully aiding another person to commit tax fraud Hiding assets with the intent to evade or defeat the assessment […]
Crimes Under the IRC – Part 1 of 2 parts: Failure to File, Supply Information or Pay Tax
Underpinning the vast power of the IRS to collect our tax money is the Internal Revenue Code (26 U.S.C), hereafter referred to as the IRC. Subtitle F, Chapter 75, Subchapter A, of the IRC lists the crimes and punishments for anyone convicted of violating our tax law. The most common violations of the IRC are […]
Fraud Technical Advisors: An End-Run Around Tweel?
United States v. Tweel is the most famous example of a motion to suppress in a tax case. In Tweel, the Fifth Circuit Court of Appeals held that it constitutes trickery, fraud, and deceit for the IRS to conduct a criminal investigation under the guise of a civil examination. Because of how fact-sensitive the holding […]
Lowering the Bar for Willfulness for FBAR Penalties
The IRS has authority to assert FBAR civil penalties. Before delving into the FBAR abyss, this is a good time to debunk some FBAR myths. First, there is no such thing as an FBAR penalty within the Offshore Voluntary Disclosure Program (OVDP). The FBAR penalty exists only outside of the OVDP framework. However, there is […]
“FATCA” Law Is Striking Fear Into Foreign Banks
Law That May Reduce Tax Evasion Goes Into Effect On July 1 The Foreign Account Tax Compliance Act (FATCA) became law in the United States in 2010, but the clock is still ticking on its implementation. The clock will stop ticking on July 1, 2014. The U.S. Congress and the Obama Administration pressed for FATCA […]