Tax Litigation Law Office of Scott Kauffman
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May 2016 Archives

Arrests reported in IRS impersonation scams

Over the last six months, we have followed constantly evolving tax scams. Callers have become very good at impersonating IRS agents. Threats of immediate arrest are used to intimidate victims to pay supposed back taxes via Walmart wire service, iTunes gift cards and other prepaid cards. These schemes often target retirees and seniors. Reported taxpayer losses have surpassed $36 million.

Federal judge finds Sam Wyly knew system of tax shelters was improper

The latest chapter in a years-long legal saga between the IRS, the SEC, and once-prominent businessman Sam Wyly (and the estate of his late brother Charles) came this week in the form of a 459-page verdict from U.S. Bankruptcy Judge Barbara Houser. The Court found that there is "clear and convincing evidence" that Sam and Charles Wyly knew that their extremely complex and convoluted system of offshore trusts and shell corporations was designed for the sole purpose of hiding profits and other business transactions from the IRS to avoid paying taxes.

IRS staff/budget woes mean fewer audit worries for many

According to information provided by IRS Commissioner John Koskinen, the average American has less of a reason to fear that the “Taxman” cometh (in the form of an audit) than ever before. Congress has slashed the IRS’ share of government funds in recent years, and the agency is now dealing with an operating budget of nearly $1 billion less than it was in 2010.