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August 2011 Archives

Deadline for the OVDI and FBARs extended to September 9

We have covered the IRS' Offshore Voluntary Disclosure Initiative in several of our previous posts. The OVDI allows California taxpayers with undisclosed offshore bank accounts to voluntarily report their undisclosed assets to the IRS in exchange for amnesty from any criminal tax evasion charges. The OVDI does impose some pretty hefty penalties on participants but these penalties are not as severe as those associated with the IRS finding an Orange County taxpayer's offshore bank account on its own.

Wall Street lawyer allegedly evaded taxes to buy rare books

In our last post we discussed the possible consequences of failing to file a tax return and the case of one Wall Street law firm partner who pleaded guilty to tax evasion. The attorney was arrested after failing to file returns or pay taxes for several years. The charges against the attorney stated that instead of paying his $2,500,000 tax liability, the attorney funneled $3,000,000 to his rare-books business and took lavish international vacations.

Wall Street lawyer pleads guilty to tax evasion

Many California residents fail to file taxes on time. Although requesting an extension for a late return is relatively simple, it also very easy to allow a late return to become an unfiled return. The IRS diligently looks for Orange County residents who fail to file returns and the IRS may subject these taxpayers to penalties for failure to file, failure to pay, or even tax evasion. In some cases the IRS may even file a tax return for a California taxpayer, giving the taxpayer the bare minimum amount of reductions and charging interest and penalties on any outstanding amount due.

OVDI relief offered to Orange County dual citizens

We have extensively covered the Offshore Voluntary Disclosure Initiative Program in previous posts. The OVDI program is coming to an end and it is a great opportunity for United States citizens with assets abroad to voluntarily report those assets to the IRS and avoid criminal tax evasion charges. The OVDI offers amnesty but it is not a free pass because those who participate in the program are subjected to penalties of varying severity levels.

Underreporting gift amounts may lead to an IRS audit

Many Santa Ana residents fear a tax audit when they are contacted by the Internal Revenue Service. Many individuals do not know whether an IRS audit will reveal what the IRS considers to be tax fraud and it is important to contact an experienced Orange County tax litigation attorney if the IRS sends you notice of an audit through a phone call or a letter.

The OVDI deadline raises local tax questions

In our last post we discussed the approaching deadline for the Offshore Voluntary Disclosure Initiative which provides amnesty for Orange County taxpayers with undisclosed offshore bank accounts. Although the penalty rates and the 8-year reach of the OVDI may not be particularly pleasant thoughts for Orange County offshore account holders, many offshore account holders are more worried about the implications of the OVDI program regarding domestic income.

Deadline for disclosing offshore accounts is approaching

The last day to take advantage of the Offshore Voluntary Disclosure Initiative is quickly approaching, the Internal Revenue Service warns. The IRS recently stressed that Orange County taxpayers who voluntarily disclose their hidden offshore bank accounts by the August 31 deadline will be in a far better position than those who wait until the IRS finds their offshore funds.

HSBC to drop United States clients amid tax evasion probe

In our last post we discussed the ongoing United States crackdown on offshore tax evasion and its impact on Credit Suisse, one of the world's largest banks. The bank faces criminal charges for allegedly assisting American tax evaders and the fine against the bank could be as high as $1 billion. The proceedings against Credit Suisse have captured the attention of many other international banks and at least one major bank has decided to dump its American customers banking abroad.

Federal offshore tax evasion probe focuses on Credit Suisse

Although an offshore tax evasion investigation may be more alarming to an individual taxpayer, federal authorities also routinely target large financial institutions such as banks. Credit Suisse Group AG, one of the world's largest banks, is the most recent target of federal criminal probes into possible tax evasion.