On August 4, the US Tax Court determined that it lacked the jurisdiction to consider an award claim by a whistleblower in a case regarding 2 Swiss bankers involved in tax evasion. The Court ruled that it couldn’t assume jurisdiction as the IRS had yet to make its final determination. Under tax code Section 7623(b), […]

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On July 11, a Caribbean-based lawyer, Patrick Poulin, pleaded guilty in a US District Court to helping launder what he knew to be “dirty money” in a sting operation conducted by undercover agents. Poulin was told that the $2 million he later tried to hide from US tax officials were the proceeds of a bank […]

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On June 4, the US government filed a civil complaint in the US District Court for the Southern District of New York alleging that Henry Levine, a New York tax attorney, promoted, implemented, or joined in at least 90 unlawful tax avoidance shelters from 2005 through 2010. The complaint also sought an injunction that would […]

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During a recent Internal Revenue Service (IRS) webinar, a key IRS official stated that taxpayers will not have to report their ownership of Bitcoin on the FinCEN Form 114, Report of Foreign Bank and Financial Accouts (FBAR) for the current filing season. Rod Lundquist, a senior program analyst at the Small Business / Self-Employed Division, […]

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On June 4, Senator Rand Paul once again halted the advance of two outstanding US tax treaties out of opposition to the treaties’ effects on taxpayer privacy. Sen. Paul has effectively prevented any further progress on the tax treaties with Switzerland and Chile for the time being by objecting to Senate Foreign Relations Committee Chairman […]

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The IRS has revised its procedures that taxpayers must use to validate their Social Security Numbers (SSNs) when they receive a second “B notice” from a payor.  A “B notice” is sent by a payor when a taxpayer has provided a mismatched name and SSN combination.  The “second B notice” is sent out when the […]

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On July 11, a Caribbean-based lawyer, Patrick Poulin, pleaded guilty in a US District Court to helping launder what he knew to be “dirty money” in a sting operation conducted by undercover agents. Poulin was told that the $2 million he later tried to hide from US tax officials were the proceeds of a bank […]

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On July 17 a convicted tax cheat pleaded guilty for failing to appear for sentencing 11 years ago after being found on Facebook. Francisco R. Legaspi pleaded guilty in 1992 to an indictment alleging that he had filed false employer’s quarterly federal tax returns for a day-care center in San Francisco. However, before Legaspi could […]

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A new proposal submitted recently by the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) aims to strengthen efforts to fight tax evasion, money laundering, terrorist financing, and other illicit financial activities. The proposed rules, RIN 1506-AB25, were issued July 30, and include much more explicit customer due diligence requirements for financial institutions operating under […]

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A new bill signed by California Governor Jerry Brown (D) will allow homeowners who had mortgage debt forgiven in 2013 to exclude that debt from their taxable income. The bill, A.B. 1393, was written by Assemblyman Henry T. Perea (D), who stated “Requiring homeowners to pay income taxes on forgiven debt puts additional stress on […]

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