On June 19, two Swiss banks agreed to pay penalties totaling nearly $6 million in order to avoid prosecution under the Department of Justice’s program which requires Swiss firms to disclose how they helped their American clients avoid taxes. The two banks, Bank Linth LLB AG and Bank Sparhafen Zurich AG, are only the latest […]

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On June 19, Enrique Free Pacheco filed his third complaint for a refund of taxes withheld from the winnings he earned by playing the slots in Las Vegas. This complaint is Pacheco’s third, following lawsuits filed in the US Court of Federal Claims in 2012 and 2014 for refund claims totaling approximately $19 million for […]

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Starting July 1 of this year, Japan will impose an “Exit Tax” on both Japanese nationals and non-nationals who expatriate. The tax is based on those instituted by both the US and Canada. The US system, which is itself modelled on the Canadian tax, imposes a tax on the difference between the fair market value […]

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The House Appropriation Committee’s fiscal year 2016 financial services and general government spending bill will cut the Internal Revenue Service’s (IRS’s) budget for the sixth year in a row, slashing the agency’s budget by 7.7% as compared to last year. The bill would fund the IRS at $10.1 billion, or $838 million less than last […]

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IRS Loses Couple’s Tax Return, Blames the Couple

by Bruce Givner on May 14, 2015

In a complaint filed April 30 in the US Court of Federal Claims, John and Dorothy Shea stated that the Internal Revenue Service (IRS) had erroneously denied their refund claim as untimely filed after the agency had admitted to losing the couple’s timely filed return and refused to accept a claim on a replacement return. […]

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False Tax Returns Increase Tenfold since 2010

by Bruce Givner on May 12, 2015

Several million taxpayers – and the number is rising sharply—have had returns falsely filed in their name in recent years. New consumer-protection rules were supposed to make it easier for people to figure out what thieves have stolen. But there’s a catch: Other IRS rules encourage its workers to keep a tight grip on the […]

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Couple Assessed Penalty for Wasting IRS’s Time

by Bruce Givner on May 7, 2015

Judge Albert G. Lauber ruled on April 15 that a Michigan couple, who failed to pay the full amount of taxes they owed for the years 2005 – 2008, had “wasted many hours of respondent’s time and of this Court’s time,” and granted an Internal Revenue Service (IRS) motion for summary judgement against the couple. […]

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Ex-Billionaire Owes $3.2 Billion in Taxes

by Bruce Givner on May 5, 2015

On April 17, the Internal Revenue Service (IRS) delivered a tax bill against former Dallas billionaire Sam Wyly, who helped build the company Micahels Stores Inc., and the estate of his late brother, Charles Wyly, for over $3 billion. The documents, which were filed with the US Bankruptcy Court in Dallas, claim that Sam Wyly […]

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On April 13, the National Taxpayer Advocate (NTA) office urged the Internal Revenue Service (IRS) to simplify the foreign asset reporting requirements that have been magnified by the Foreign Account Tax Compliance Act (FATCA). Specifically, the NTA office argued that taxpayers shouldn’t have to report assets of Form 8938, the Statement of Foreign Financial Assets, […]

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On April 10, the Internal Revenue Service (IRS) said that American citizens and resident aliens, including individuals with dual citizenship who have lived or worked abroad for all or part of 2014, may have a US tax liability and filing requirement in 2015. In a news release, the IRS stated that most people abroad need […]

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