John D. Teter Law Offices

REQUEST A CONSULTATION TODAY

408-866-1810

1361 South Winchester Boulevard, Suite 113
San Jose, CA 95128
Subscribe to this list via RSS Blog posts tagged in tax compliance

San Jose tax audit attorney for offshore complianceTaxpayers often make errors on their tax returns that are due to simple miscalculations or misidentification of assets and income. These mistakes rarely lead to criminal charges, and they can typically be rectified with help from a qualified tax lawyer. However, when a taxpayer or business makes a deliberate effort to avoid tax liability, this may constitute illegal tax evasion. Tax evasion is a serious crime punishable by up to 5 years’ incarceration and fines up to $250,000 for an individual or $500,000 for a corporation. In recent years, the Internal Revenue Service has dramatically increased enforcement of income compliance with regard to offshore accounts. The United States, however, is not the only country that is concerned about the increasingly common crime of offshore tax evasion. Recently, the U.S. was joined by several other countries in a “day of action” against offshore tax evasion schemes.

IRS Continues to Investigate Potential Facilitation of Tax Evasion

The Sixteenth Amendment to the U.S. Constitution and a number of other laws dictate Americans’ tax obligations. In order to avoid paying their fair share of taxes, however, some individuals and businesses transfer assets outside the United States and into offshore tax shelters. Tax evasion is a massive problem that is estimated to have cost the U.S. federal government $458 billion per year from 2008 to 2010. Tax evasion schemes occur in developed countries around the world. 

In 2018, the Joint Chiefs of Global Tax Enforcement was formed by leaders in the United States, the United Kingdom, the Netherlands, Canada, and Australia to coordinate efforts to fight global tax evasion. The recent “day of action” occurred as part of an ongoing investigation into a financial institution in Central America that may be facilitating tax evasion and money laundering. The Joint Chiefs of Global Tax Enforcement have reason to believe that some taxpayers are anonymously hiding assets and laundering profits from criminal activities using this institution. Using interviews, subpoenas, search warrants, data analytics, and other intelligence, a great deal of information was uncovered about this institution and the activities taking place there. A number of civil and criminal actions are expected to result from the information gained during the investigation.

...

San Jose, CA tax compliance attorneyMost people know that paying taxes is not optional. However, sometimes something as simple as a mistake or miscalculation on a tax return can result in a tax compliance issue. When the Internal Revenue Service (IRS) discovers a problem with an individual’s tax return, the first method for contacting the taxpayer is typically a letter through the mail. If the issue is not resolved through the mail, an IRS officer may sit down with the taxpayer in a face-to-face meeting to discuss the compliance concerns. If you have been contacted by the IRS because you have not adequately met your tax obligations, an experienced tax lawyer can help you understand your options and protect your rights.

Make Sure That it Is Actually the IRS Who Is Contacting You

In recent years, there has been an uptick in the number of scammers pretending to be IRS agents. A scammer will typically make a phone call to an unsuspecting taxpayer and impersonate an IRS agent for the purposes of gaining access to personal identifying information or stealing the individual’s money. The IRS very rarely makes phone calls regarding tax issues. If an IRS worker does call you, he or she will not demand immediate payment or ask for credit card details over the phone. According to the IRS’s official website, anyone who receives a suspicious phone call from someone claiming to be with the IRS should hang up and call the IRS directly to discuss any potential compliance issues.

Know What to Expect During an IRS Meeting

The IRS recently announced that it will be increasing the number of revenue officers who make in-person visits to taxpayers. These face-to-face meetings will be focused in communities that have been especially affected by reduced IRS resources. In-person meetings only occur after the IRS makes several attempts to contact the taxpayer via mail. These meetings are typically unannounced. The IRS officer should provide two forms of credentials in order to verify that he or she is indeed an IRS worker. If he or she does not offer identification, you have the right to ask to see these credentials. The officer will then discuss your tax concerns and help you understand your options for resolving the issues.

...
BBB ABA State bar of california SCCBA MH 2016
Back to Top