What do a U.S. Senator, the owner of an Albanian brokerage firm, an attorney who is a dual citizen of America and Israel, and a group of current and former U.S. citizen now living in Canada, Switzerland, and the Czech Republic all have in common? They have been denied review by the U.S. Supreme Court in their jointly failed attempt to enjoin the enforcement of the Foreign Account Tax Compliance Act (FATCA), certain intergovernmental agreements (IGAs), and the foreign bank account reporting (FBAR) penalty.
The Internal Revenue Service (IRS) announced plans to consolidate the federal Forms 1040, 1040A and 1040EZ into a single Form 1040 for the 2019 filing season. The shorter form would be supplemented with schedules for more complex tax filing situations. Tax professionals can view the proposed new Form 1040 in draft form here and submit any comments to [email protected].
A resident of Saratoga, California, was recently convicted of filing false tax returns and making false statements to an Internal Revenue Service (IRS) agent during an audit. The taxpayer, who owns part of a home-based international trading business, failed to report profits related to sales to China during 2006 and 2007, and he made false statements concerning ownership of foreign bank accounts.
Through the Tax Cuts and Jobs Act of 2017, taxpayers now have up to two years to file an administrative claim and bring suit for a wrongful levy by the Internal Revenue Service (IRS) where the IRS has already sold the property it levied. This time limit is a significant extension on the previous nine-month time limit and applies to levies made after December 22, 2017, and on or before that date if the shorter time limit hadn't yet expired.
An Internal Revenue Service (IRS) supervisor in the Central District of California, Leslie Williams, was arrested this week on charges of theft of government property and making false statements. Williams allegedly embezzled federal funds and lied to obtain death benefit payments related to her former spouse. She continued to lie about her relationship to her deceased former spouse when interviewed in 2017 by special agents for the Treasury Inspector General of Tax Administration (TIGTA). She was released on a $10,000 appearance bond and had to surrender her passport; Williams could serve up to 10 years in prison for the charges.
The Internal Revenue Service recently issued a notice about proposed regulations that will address the deductibility of state and local tax payments for federal income tax purposes, specifically reminding taxpayers that the IRS position is that federal law controls the characterization of payments, regardless of the treatment under state law. To read the IRS press release, click here.
The 2018 IRS Nationwide Tax Forum dates and locations are now available for this annual tax law event featuring education sessions, training, and networking for tax law professionals. Betty Williams will be speaking about "Representing the Taxpayer Without Records: How and When Can a Preparer Use Taxpayer Estimates & Reconstructions to Prepare a Return" during the forum scheduled for August 7 - 9, 2018 in San Diego. To register, click here: https://www.irstaxforum.com/index
The Internal Revenue Service (IRS) and its Security Summit partners have released a warning about a new variation on phone scams by which criminals prey on taxpayers. Scammers are now using telephone numbers that mimic IRS Taxpayer Assistance Centers to try to trick victims into paying non-existent tax bills. Remember that IRS employees at these centers do not make calls to taxpayers to demand payment; such requests are typically initiated through regular mail delivered by the U.S. Postal Service.
On April 18, 2018, Ana Bajo, a California resident, pleaded guilty in the Northern District of California to conspiring to file fraudulent claims for more than $9.7 million in refunds by obtaining the personal information of others and filing more than 2,300 fraudulent income tax returns with her co-conspirators. The Internal Revenue Service (IRS) paid over more than $7.5 million as a result of the scheme. Bajo now faces a maximum of ten years in prison, plus supervised release, restitution, and monetary penalties. Her sentencing is scheduled for September 26, 2018.
On March 5, 2018, a former Internal Revenue Service (IRS) employee, Pamela Pringle, was sentenced in the Eastern District of California for "making opportunities for persons to defraud the United States and for making and subscribing false returns." While employed by the IRS, Pringle prepared and filed income tax returns for other individuals that included false deductions, and in several years she also filed fraudulent tax returns for herself, claiming deductions to which she was not entitled. Pringle entered a guilty plea in November 2017 and will spend 5 months in prison, then 36 months under supervised release, including 5 months of home confinement; she was also ordered to pay $56,857 in restitution.