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Tax Fraud Archives

Factors that may trigger an IRS audit of a California taxpayer

In our last post we discussed the IRS' special wealthy taxpayer audit team and the fact that wealthy California taxpayers are many times more likely to be the subject of an IRS audit. Although a taxpayer's income or wealth can make an IRS audit more likely, there are a variety of specific factors that may raise a "red flag" with the IRS and make an audit imminent.

IRS more likely to audit wealthy Orange County residents

We have extensively discussed small business payroll taxes and offshore bank accounts in previous posts, including the related tax issues that may arise for Orange County residents. Often taxpayers who have offshore bank accounts or own businesses that have payroll tax obligations are wealthier than the typical California taxpayer. These successful individuals are unfortunately much more likely to become the target of an IRS audit according to some reports.

GAO report criticizes tax evasion whistleblower program

The U.S. Government Accountability Office recently released a report indicating the Internal Revenue Service's federal-tax whistleblower program needs significant improvements. Congress enacted the tax whistleblower program in 2006 for cases involving tax evasion of over $2 million. The GAO report suggests that the IRS' program is inefficient, slow and difficult for citizens to navigate.

Outcry arises over clergy tax breaks

At a time when some politicians are calling for an end of the home mortgage interest deduction, there is a class of California taxpayers who do not have to worry about taxes on their homes at all. An old provision in the tax code provides that clergy members get to live tax-free in homes that are wholly owned by their churches.

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.

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.

Five tax scams that Orange County residents should avoid

Many Orange County taxpayers facing tax fraud accusations did not intentionally defraud the IRS. The most common way that Californians get into tax disputes is by taking the advice of a tax preparer who was either under qualified or intent on filing a false return in order to maximize his or her own profits. The unfortunate impact of this behavior is that the taxpayer is left solely responsible for the misdeeds of a predatory tax preparer.

Court affirms former IRS agent's tax fraud related convictions

A panel of circuit court judges recently affirmed the conviction of a former IRS agent for charges of mail fraud and making a false claim against the government. The IRS agent's charges arise out of her involvement in a company that promoted what the government considered a tax fraud scheme.

Calls for innocent spouse tax relief increase

Most Orange County married couples file joint tax returns. Many married couples also have one partner who is primarily responsible for filing the joint return. This trust can be dangerous because a spouse can be held liable for the tax fraud committed by their partner.