If you have paid any attention to national political news over the last few months, the term "obstruction of justice" has been mentioned a number of times. To the uninitiated, federal law is broadly defined to punish conduct that affects the "due administration of justice." This largely means that conduct that would adversely affect a pending judicial proceeding or law enforcement investigation may be considered a crime punishable under federal law.
FBAR and FATCA violations are either willful or non-willful in nature. The penalties for inadvertent or non-willful violations are understandably lesser than those for willful non-compliance. The IRS punishes those who non-willfully violate FBAR filing mandates with penalties of up to $10,000 per non-complying tax year.
Taxes are one of the many things on a long list of obligations a business owner must address. Although entrepreneurs balance many obligations, a failure to properly deal with Uncle Sam can result in serious ramifications.
We’ve previously discussed the potential consequences and ramifications – both civil and criminal – that can flow from submitting falsified tax returns. A majority of cases that involve criminal penalties flow from individual tax returns, but it is important to remember that business-related tax fraud (or evasion) can also result in criminal charges. These include, but are not necessarily limited to:
The IRS Criminal Investigation Division (IRS-CI) reviews criminal fraud allegations in light of the Internal Revenue Code, Bank Secrecy Act as well as money laundering statutes. If referred for prosecution a case then transfers to the Department of Justice.
The former professor had invested in a number of startups over the years. Most went bust, but one took off and netted him $80 million when he sold his shares of company stock.
Federal taxes are in large part paid through income withholdings by employers. The employer is trusted to withhold the right amount from employee wages and turn that sum over the IRS.
This was not solely a Swiss account inheritance. But it does raise issues for anyone who inherits a financial portfolio that includes international bank or investment accounts.
Another tax season has come to an end. Now the IRS begins reviewing returns searching for discrepancies and underreported income.
Last week, the Criminal Investigation division of the IRS released its annual report for Fiscal Year 2015. The numbers tell a story of an agency that has had to cut back significantly on the number of investigations it initiates.