During the 2017 tax season, the MD Comptroller suspended a total of 54 tax preparers who have been involved in potentially fraudulent behavior.
On May 5th Glen E. Frost wrote a letter, on behalf of the American Citizens Abroad, to IRS Commissioner John Koskinen in regards to private collection firms based in the United States collecting debts of U.S. taxpayers with foreign addresses.
In 2015 the Fixing America’s Surface Transportation Act ("FAST Act") was established to provide long-term funding for surface transportation infrastructure planning and investment. Included in this new law was a section allowing the State Department to refuse to issue or renew a passport for a seriously delinquent taxpayer.
Donald Trump has proposed to make several tax changes when he enters office in January. It is important to examine the possible tax changes that could result from the new plan so that taxpayers are aware of the potential advantages and disadvantages the new tax plan may give them.
Jessica Frase Marine, Esq.
When a taxpayer receives a notice from the IRS proposing an additional assessment of tax, the taxpayer can often work administratively with the IRS to resolve the dispute. However, many times, the taxpayer and IRS are not able to come to an agreement. In those instances, there are four different forums which can be utilized to litigate a Federal civil tax case: the United States Tax Court, United States District Courts, the United States Court of Federal Claims, and United States Bankruptcy Courts.
Glen Frost is Advocating for a Same Country Exemption from FATCA Reporting for Citizens Living Abroad
Glen Frost is advocating for a same country exemption from FATCA reporting for citizens living abroad:
The Treasury Inspector General for Tax Administration (“TIGTA”) completed an audit of the Offshore Voluntary Disclosure Program (“OVDP”). US citizens are taxed on their worldwide income and must report bank accounts when their aggregate balance exceeds $10,000. The OVDP and other similar programs allow taxpayers a mechanism to come forward and get into compliance with their tax and offshore bank reporting requirements. Some citizens have hid their assets with offshore bank and financial accounts so that they are not subject to taxes on these accounts. Intentionally failing to report all income could result in significant penalties and potential criminal prosecution. The OVDP gives these citizens a chance to step forward and disclose these accounts to resolve their tax delinquencies. TIGTA completed an audit on this program to see how truly effective this program was and if it was efficiently holding these non-compliant tax payers accountable for their actions.
A few weeks ago the world was introduced to one of the largest information leaks ever seen: over 11.5 million documents and 2.6 terabytes of information from the Panamanian law firm Mossack Fonseca went public. While the leak does not necessarily stamp all those involved with guilty convictions for tax evasion, money laundering, or any other crime associated with offshore bank accounts, it does raise many concerns for both the firm and its clients. Those documents that have been reviewed show that many of the individuals implicated in the Panama Papers have strong ties to the United Kingdom; in fact, estimates show that over half of the companies that Mossack Fonseca created for its clients are registered in the UK or in British-administered tax havens.
Over the past few years, the IRS has increased its attention on offshore bank accounts, earmarking much of its limited budget, staff, and resources towards initiatives such as the Offshore Voluntary Disclosure Program (OVDP) and Swiss Bank Program, and pushing strict compliance of foreign bank and financial account reporting through enforcement measures such as the Foreign Account Tax Compliance Act (FATCA). It appears that the IRS was definitely on to something, as the debut of the Panama Papers makes clear.
In the classic story of "Romeo and Juliet" there is a well-known and often repeated line, "What's in a name?" In the tax world, a name can mean the difference of thousands of dollars. It is important for business owners, employers, employees and independent contractors to understand the distinction between titles and to plan for the associated tax implications accordingly.