Massachusetts taxpayers may be interested in an article discussing some common mistakes people often make with the IRS Form 1099 that reports miscellaneous income. Being more careful up front may help to avoid an expensive audit later.
A grand jury returned an indictment on Jan. 15 against a Boston-area photographer who allegedly failed to report income of $87,907 between 2003 and 2007. Charges of tax evasion and filing false tax documents followed an investigation by the Internal Revenue Service.
A recent tax case involving a woman who claimed that she didn't owe tax because she was not an American citizen was sentenced to five years in prison. The woman represented herself and reportedly did herself no favors by being rude and vocal toward prosecutors and the judge in her case. It also didn't help that she claimed over $8 million in tax refunds that she was not entitled to. She tried to claim that she was exempt from paying tax because she was a sovereign citizen, a status that people in Massachusetts and around the country have on occasion tried to claim.
Massachutes residents may be interested in the latest developments in the government's tax evasion case against the billionaire creator of Beanie Baby plush toys. The 69-year-old toy designer pleaded guilty on Oct. 2 to evading approximately $5.5 million in taxes by using undisclosed Swiss bank accounts. In a Dec. 31 filing, his lawyers asked that the accused be sentenced to probation and community service instead of jail.
Many Massachusetts companies and individuals are once again in the dark as to whether they will receive certain tax credits during 2014. One of the side effects of a Congress that is deeply divided on budgeting issues is that 55 tax credits expired at the end of 2013. While it is expected that most will be renewed, there is no guarantee this will be the case.