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.
Tax season is one of the most stressful times of the year for many Massachusetts residents. In order to make filing taxes a lot easier, many people turn to tax professional for help. However, one way to make tax season even more stressful is by falling for a scam.
A chiropractor in Lowell recently pleaded guilty to charges of bribing an Internal Revenue Service auditor. According to allegations in the complaint, the man paid $5,000 in cash to an IRS auditor to sign off on an audit.
The Internal Revenue Service does not have the resources to audit every single tax return and thus prioritizes its collection efforts. The agency keeps a close eye on the payment of employment taxes withheld from employee paychecks.
In the first part of this post, we began discussing the role of the IRS Criminal Investigation division.
Like any other organization, the IRS has judgment calls to make about its priorities.
The IRS wears several hats.
Heading into the frenzy of tax season, the IRS wants Massachusetts taxpayers to know that filing inaccurate returns or failing to make necessary disclosures may result in prosecution for tax evasion or other tax crimes. In addition to paying any unpaid taxes, penalties and fines, the IRS may aggressively pursue imprisonment of taxpayers that commit tax crimes.