It's called the Fair Share Amendment, and it was certified to go before voters in November. But the constitutional amendment which would impose a 4% surtax on incomes over $1 million has to pass the Massachusetts Supreme Court first.
A tax preparer received an 18-month prison sentence after pleading guilty to submitting taxes filed incorrectly on behalf of her customers. The woman is 51 years old and pleaded guilty to the offense in November of 2012. According to authorities, the woman operated a Springfield, Massachusetts tax preparation business. Between February 2007 and April 2008, she knowingly prepared numerous fraudulent tax returns so that customers would receive larger tax refunds. A United States Attorney with the Department of Justice stated that the woman made misrepresentations to IRS representatives, provided false documents for customers to give to the Massachusetts Department of the Internal Revenue Service, and advised and told her customers to lie to the IRS. Authorities have discovered that the tax preparer is from the Dominican Republic and does not have a valid visa to be in the United States. The prosecution believes that the woman used identifying information from another person who is a legal United States resident to operate her business, open bank accounts, open credit cards and acquire a driver's license.
As I'm sure you've heard Bostonians do not need to file taxes until Tuesday, April 17. While taxes are typically due on April 15, that date falls on a Sunday. Obviously, Monday would be the next logical choice. But this year Monday, April 16 is a Massachusetts state holiday, Patriots' Day. Or in other circles, Marathon Monday. (Since 1969, we've had three-day weekends during April's third week.) Monday, April 16, also happens to Emancipation Day, a holiday in Washington, D.C., and our IRS offices are also closed on Monday.
Not even Boston churches are immune from tax collection cases. It has been reported that the Catholic Archdiocese of Boston is attempting to recoup past property taxes it already paid on a former church. That church, located in the town of Scituate, was closed in 2004. The tax refund claims in dispute were paid between 2008 and 2011.
The Internal Revenue Service (IRS) is not an agency that is liked by most. But when the IRS revises its rules to clearly benefit the taxpayers, one has to give the agency credit where credit is due. And credit is due, because two months ago, the IRS made a surprise but very welcome announcement.
It's hard to overstate the importance of filing a timely and accurate tax return with the IRS, but many low-income individuals and families are often hard-pressed to afford good tax advice. Yet according to the community organization Chelsea Neighborhood Developers (CND), on average, IRS tax refunds represent 9 percent of low-income households' total income for the year.
The Internal Revenue Service has been working hard to collect the taxes that are owed to it. It takes tax evasion extremely seriously, and even seemingly minor violations can result in substantial fines and jail time. For anyone with foreign banking and financial accounts, it is important to report them on your tax return. Failure to do so can lead to accusations of tax evasion, as a Massachusetts bank director found out recently.
Recently, a Massachusetts firefighter was suspended after he was arrested on charges of tax evasion and fraud. He was indicted on three counts of tax evasion for the years 2007-2009. According to the indictment, he refused to file tax returns on his earnings.
The Internal Revenue Service has agreed to an offer presented by ThermoEnergy Corporation of Massachusetts to settle tax requirements on its payroll that led to a $2.3 million gain. The multimillion-dollar gain was recorded during the fourth quarter of 2010.