The taxpayer’s argument was clever, in that if all of their transactions were viewed as shams, and where nothing of any real economic substance happened, then there would be no event triggering of tax recognition, as no property would have changed hands. The Tax Court, however, disagreed with their assertion. The court noted that thecontinue reading…
And you thought your job was bad
The federal government is large and is made up of such varied entities as the Bureau of Labor Statistics, the National Parks Service, the Department of Defense, the National Weather Service, and National Institute of Standards and Technology. And of course, the Internal Revenue Service, whose efforts help fund all of those other departments. Amongcontinue reading…
How not to handle your taxes
If you have a professional practice, such as medicine, law or finance, you may have considerable income. This level of income will generate significant taxes, both from the Internal Revenue Service (IRS) and from the Minnesota Department of Revenue. Tax planning and advice from a knowledgeable accountant or tax attorney would be helpful to reducecontinue reading…
Far from negligible: potential IRS penalties on overseas accounts
A tax-related blog can hopefully be forgiven this time of year for recurrent reference to a theme that is playing out in a broad-based way and with strong relevance for a large number of American taxpayers. That focus is simple and succinct, namely this: IRS power globally. We most recently noted the ever-expanding global reachcontinue reading…
Tax evasion focus: foreign bank pays IRS huge amount
There once was a time when wealthy Americans with money stockpiled abroad in Swiss banks could sleep easily at night, knowing that their account details would be kept shielded from the prying eyes of United States Internal Revenue Service agents. That time has assuredly passed. The new reality is this: Americans holding overseas savings accountscontinue reading…