Most people probably assume that wealthy individuals are priority number one on the IRS’s radar. There is some truth to this characterization, as audit rates for high-income filers are much greater than the audit rates experienced by the general population. However, the Treasury Inspector General (TIGTA) — a government watchdog responsible for identifying and eliminating waste, fraud, or corruption in…
For taxpayers holding significant investments and offshore accounts, it is no secret that the IRS and U.S. government have used significant resources towards identifying and prosecuting those who commit tax evasion and other tax crimes. Starting around 2008, federal prosecutors began enforcing the longstanding obligation to file FBAR (Report of Foreign Bank Accounts). In 2010, FATCA (Foreign Account Tax Compliance Act) was…
Most taxpayers are highly aware that an audit launched by the IRS can begin a painful process where your finances and tax compliance are placed under the microscope. Even if your audit is launched “randomly” or if you simply fall within the top percentage of annual income, huge mistakes and noncompliance can be uncovered during the audit. These errors can result in significant…
Taxpayers who receive a letter from the IRS are often distressed and anxious about the possibility of having to pay additional taxes, interest, and penalties on that unreported or unpaid tax. Thus, as most people in today’s world frequently do when they are seeking information, the taxpayer may decide to Google the issue identified by the IRS. Providing the right…
In California, the state income tax obligation is administered by the California Franchise Tax Board (FTB). Essentially, the California FTB is the state-based counterpart to the IRS. While the IRS handles your federal income tax and other tax obligations, the California FTB handles similar responsibilities at the state level. The failure to satisfy either state or federal tax obligations can…
You’ve been contacted by the IRS through letter or notice. While you hoped that the notice would state that the IRS had taken some action in your favor, your worst fears played out: the IRS is seeking additional information regarding a recent tax return. Of course facing an audit is not an enviable position, but it does not have to…
If you’ve fallen significantly behind on your debts, you may engage in negotiation with creditors to reduce or eliminate certain parts of your debt burden. In certain situations, the potential for bankruptcy and the possibility of an overworked creditor may encourage them to forgive a certain portion of the debt. Other times the creditor may simply realize that the collection costs will…
You filed your taxes on time and didn’t expect to face any issues. In fact, you were looking forward to putting them out of your mind altogether until the next tax filing season. At we provide year-round tax support and guidance, but we understand why taxpayers would prefer to think about more appealing topics. In any case, you were expecting…
For many Americans, filing taxes is both a matter of duty and a function of fearing the consequences of what will happen should he or she fail to file. The fact of the matter is that most Americans have a duty to file taxes because the income threshold that triggers a filing obligation is rather modest. In any case, for the people who…
Failing to file an FBAR carries a steep penalty—$10,000 per account per year in most instances, or the greater of $100,000 or 50% of the account balance for violations that are deemed willful. A willful failure to file an FBAR may also result in criminal prosecution, which carries a penalty of up to $250,000 and five years in prison. Do you…