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December 2010 Archives

Deutsche Bank Makes Deal to Avoid Prosecution

The US Attorney's Office in New York has made an agreement with Deutsche Bank that will allow the bank to avoid criminal prosecution. Deutsche Bank will pay $553 million and admit to criminal wrongdoing. The bank had been under investigation for offering tax shelters that prosecutors say generated billions of dollars in bogus tax benefits.

Time to Disclose Offshore Accounts? Part II

Earlier this year, Congress passed the Foreign Account Tax Compliance Act (FATCA) as part of the HIRE Act. FATCA is designed to convince foreign banks to disclose information on accounts held by American taxpayers and corporations. It does so by imposing a 30 percent withholding tax on payments made to foreign financial institutions that refuse to identify their U.S. investors.

Time to Disclose Offshore Accounts Before IRS ups its Penalties?

In a speech before the George Washington University-IRS institute on international taxation earlier this month, Internal Revenue Service Commissioner Douglas Shulman announced that the IRS is "seriously considering" another voluntary offshore account disclosure program. Approximately 15,000 people made voluntary disclosures under the original voluntary disclosure program and another 3,000 people have informed the IRS of offshore accounts since the program ended.

Payroll Tax Cut Agreed To By President and Congress

The Congress and the President have agreed to reduce employees' Social Security payroll taxes from 6.2% to 4.2%. Other proposals put forward would have suspended payroll taxes paid by both employees and employers, which would have equaled 12.4% of covered wages.

IRS May Take Closer Look at Currency Transactions

The search for unreported income is always ongoing, as far as the Internal Revenue Service is concerned. Now the Treasury Inspector General for Tax Administration (TIGTA) has come out with a report that says the IRS should use currency report data to find out who has unreported income.